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In JIT manufacturing, work cells are created that produce a product from start to finish.

Excellent Corporation is a job-order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year: ​ Activity Cost Driver Amount of driver Setups $ 250,000 Number of setups   5,000 Purchasing  190,000 Number of parts 18,000 Other overhead  270,000 Direct labor hours 88,000 ​ The following information about the jobs was given for June: ​ ​ Job 201 Job 202 Job 203 Job 204 Balance 6/1 $64,500 $40,200 $32,500         0 Direct materials   74,000   37,900   23,000 13,000 Direct labor   77,000   36,500   43,500 22,000 Number of setups        50        10         20     200 Number of parts      200       80       400    500 Direct labor hours   4,000  2,300    5,100 1,500 ​ By June 30, Jobs 202 and 203 were completed and sold. The remaining jobs were still in process. The ending work in process would consist of the costs of _____.

A number of cost behavior patterns do not follow a linear pattern, instead, they follow a nonlinear cost curve called the learning curve.

Collibri, Inc., has done a cost analysis for its production of banners. The following activities and cost drivers have been developed:   Activity Cost Formula Maintenance $13,000 + $2 per machine hour Machining $45,000 + $6 per machine hour Inspection $70,000 + $500 per batch Setups $2,000 per batch Purchasing $80,000 + $150 per purchase order Following are the actual costs of producing 75,000 banners: 1,000 machine hours; 15 batches; 10 purchase orders   Maintenance $14,000 Machining 50,000 Inspection 70,000 Setups 32,000 Purchasing 82,000 Required: Prepare an activity-based performance report.

Increases in sales of low contribution margin products decrease the break-even point.

A flexible budget is sometimes referred to as a variable budget.

Appleby Manufacturing uses an activity-based costing system. The company produces Model F and Model G. Information relating to the two products is as follows: ​ ​ Model F Model G Units produced 24,000 30,000 Machine hours 7,500 8,500 Direct labor hours 8,000 12,000 Material handling (number of moves) 4,000 6,000 Setups 5,000 7,000 Purchase orders 30 40 Inspections 10,000 14,000 Product line variations 8 12 ​ The following overhead costs are reported for the following activities of the production process: ​ Material handling $ 40,000 Labor-related overhead 120,000 Setups 60,000 Product design 100,000 Batch inspections 120,000 Central purchasing 70,000 ​ Jones manufacturing has used activity based costing to assign costs to Models F and G as given in the table below: ​ Activity Cost Pool Driver Pool Rate Model F Activity Model F Cost Model G Activity Model G Cost Total Material handling $40,000 10,000 $4 4,000 $16,000 6,000 $24,000 $40,000 Labor related overhead $120,000 20,000 $6 8,000 $48,000 12,000 $72,000 $120,000 Setups $60,000 12,000 $5 5,000 $25,000 7,000 $35,000 $60,000 Product design $100,000 20 $5,000 8 $40,000 12 $60,000 $100,000 Batch inspections $120,000 24,000 $5 10,000 $50,000 14,000 $70,000 $120,000 Central purchasing $70,000 70 $1,000 30 $30,000 40 $40,000 $70,000 total ​ ​ ​ ​ $209,000 ​ $301,000 $510,000 ​ Appleby Manufacturing wants to implement an approximately relevant ABC system by using the two most expensive activities for cost assignment. ​ Under this new approach, what is the new pool rate for batch inspection costs?

Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of September are as follows: ​ Direct materials $   200 CPA staff salaries 4,000 Overhead 1,800 Total $6,000 Number of tax returns 300 ​ What is the unit cost per tax return?

_________ and _________ studies may be used in conjunction with the industrial engineering method.

Dual rates combine the fixed and variable costs.