Cost management information benefits production, marketing, and customer service systems as well as being a crucial part of managerial decision making.
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A(n) __________ method first traces costs to a department an…
A(n) __________ method first traces costs to a department and then to products.
A correlation coefficient near +1 means that two variables a…
A correlation coefficient near +1 means that two variables are moving in the _________ direction.
Appleby Manufacturing uses an activity-based costing system….
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 cost would be assigned to materials handling?
How has the nature of accounting systems shifted in response…
How has the nature of accounting systems shifted in response to technology?
After-the-fact simplification includes two approaches: the a…
After-the-fact simplification includes two approaches: the approximately relevant reduced ABC system and the equally accurate enhanced ABC system.
Budgeted rates are allocated based on original capacity.
Budgeted rates are allocated based on original capacity.
A department that is capital-intensive most likely would use…
A department that is capital-intensive most likely would use a predetermined departmental overhead rate based on which of the following activity bases?
A demand-pull system that strives to produce a product only…
A demand-pull system that strives to produce a product only when it is needed and only in the quantities demanded by customers is referred to as:
Attraction Corporation produces specially machined parts. Th…
Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications). Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. In addition, there is a sustaining process with two activities: providing utilities (plantwide) and providing space. Costs have been assigned to each activity using direct tracing and resource drivers: Engineering $1,000,000 Setups 900,000 Machining 2,000,000 Inspection 800,000 Providing space 250,000 Providing utilities 180,000 Activity drivers for each activity have been identified and their practical capacities listed: Machine hours 25,000 Setups 200 Engineering hours 5,000 Inspection hours 2,500 The costs of facility-level activities are assigned using machine hours. What is (are) the unit-level activity(ies)?