Question 1: Compute the full production cost (per gallon) of the Polynesian Fantasy and Vanilla products using a) Will’s old costing method; b) The new costing method. 1 1a) Based on Will’s old costing method (Volume Based Costing): • California Creamery has a budgeted manufacturing overhead of $600‚000 and a budgeted direct labour cost of $300‚000 • Overhead rate per direct labour cost => $600‚000/$300‚000 = $2 From Exhibit 2 CALIFORNIA CREAMERY‚ INC. Two Product Examples (2004 Data) Polynesian
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Super Bakery Costing Methods Learning Team D Acc 561 Super Bakery Costing Methods Super Bakery is a virtual company‚ in this company many things go on‚ but it only deals with the core functions of the industry when the other portions of the company are contracted out. Since the bakery is a leader when it comes to the institutional baked goods market‚ the business may have ongoing concerns maintaining the quality of its goods and services. The Super Bakery management department agree
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1) A well-designed activity-based costing system starts with __________. A. analyzing the activities performed to manufacture a product B. assigning manufacturing overhead costs for each activity cost pool to products C. computing the activity-based overhead rate D. identifying the activity-cost pools 2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________. A. have been approved for use by the managements of business
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sentence true? Manufacturing companies that benefit the most from activity-based costing are those where overhead costs are a _________ percentage of total product cost and where there is ___________ diversity among the various products that they produce. A) low‚ little B) low‚ considerable C) high‚ little D) high‚ considerable 17. Would factory security and assembly activities be best classified at an appliance manufacturing plant as unit-level
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best answer and fill-in the corresponding circle on your Scantron sheet. Only answers on the Scantron will be scored. 1. Managerial accounting: a. is unregulated. b. produces information that is useful only for manufacturing organizations. c. is based exclusively on historical data. d. is regulated by the Securities and Exchange Commission (SEC). 2. The accounting records of Dolphin Company revealed the following information: Dolphin’s cost of goods sold is: a. $508‚000. b. $529‚000. c. $531
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Activity-Based Overhead Rate R&D activities fall into four pools. The four activity pools are market analysis‚ product design‚ product development‚ and prototype testing. The annual costs are $1‚050‚000 for market analysis‚ $2‚350‚000 for product design‚ $3‚600‚000 for product development‚ and $1‚400‚000 for prototype testing. The total estimated drivers for each activity are 15‚000 hours of market analysis‚ 2‚500 designs‚ 90 products‚ and 500 tests. Per the computed activity-based overhead
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following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion? a. Theory of constraints b. Just-in-time inventory c. Activity-based costing d. Total quality management Week Two: Cost Allocation Objective: Assess the advantages and disadvantages of an activity-based costing system. 4. As compared to a high-volume product‚ a low-volume product a. usually requires less special handling b. is usually responsible for more overhead costs per
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Specifically in Inventories management. Cost allocation‚ pricing and budgeting process. From the report‚ improvements of each firms could be discussed as well as suggestions of merging or not.Basically‚ using bugeting process‚ JIT methods‚ activity-based costing‚ absorption costing analysis to provide disadvantages and advantages in separate companies. Main Body CoolSchool is a manufacturer responsible for delivering fixed number of school uniforms for settled schools‚ they prefer
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1.0 INTRODUCTION 1.1 OVERVIEW OF THE COMPANY Morelli Electric Motor Corporation manufactures electric motors for commercial use. The company produces three models assigned as standard‚ deluxe and heavy duty. The company uses a job costing system with manufacturing overhead applied on the basis of direct labour hours. The system has been in place with minimum change for 25 years. 1.2 THE CURRENT RISING ISSUE For the past 10 years‚ the company’s pricing has been to set each product’s budgeted price
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failed. They also will be scared of negative consequences for their careers; their motivation and consequently‚ productivity will decrease significantly. In contrast to that‚ we are convinced that conscious project termination at the right time‚ based on clear and well communicated criteria‚ profoundly discussed with the whole project management team‚ and finally mutually decided‚ is one of the boldest actions the involved or affected members of an organization can take. What can we do to avoid
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