Managerial Analysis 17-2 Alberto Nicholas. University of Phoenix ACC561/PD14MBA08 June 18‚ 2015 Dr. Norris Dorsey Managerial Analysis 17-2 A) Compute the activity-based overhead rate for each activity pool. Activity Cost pools Cost Driver Annual Cost Total estimated Drivers Activity-based overhead rate Market Analysis Hours of Analysis $1‚050‚000 15‚000 hours $70.00 Product Design Number of Designs $2‚350‚000 2‚500 designs $940 Product Development Number of Products $3‚600‚000 90 products
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Activity-Based Costing to Allocate Overhead Costs The managers at Beneteau Company decided to use activity-based costing to allocate overhead in view of the point that its benefits would surpass the cost. With ABC‚ This costing use different cost groups which are organized according to different activities to allocate overhead costs. The production and maintenance of the product includes all activities such as purchasing materials‚ inventory management‚ assembling parts and verifying final products
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freight. An additional markup is added to cover the approximate cost for general and selling expenses‚ plus an allowance for profit. The markups were determined at the start of each year‚ based on actual expenses in prior years and general industry and competitive trends. Actual prices to customers were adjusted based on long-term relationships and competitive situations‚ but were generally independent of the specific level of service provided to that customer‚ except for desk top deliveries. The current
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CHAPTER 12 ACTIVITY-BASED COSTING LEARNING OBJECTIVES AFTER STUDYING THIS CHAPTER‚ YOU SHOULD BE ABLE TO: 1. Discuss the limitations of using only unit-based drivers to assign costs. 2. Provide a detailed description of activity-based product costing. 3. Describe how homogeneous cost pools can be used to reduce the number of activity rates. 4. Describe activity-based system concepts including an ABC relational database and ABC software. chapter summary THIS CHAPTER EXPLAINS HOW
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CHAPTER 7: ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT Preston Piston manufactures two types of electric sleeping bags- Luxury and Exclusive- and applies manufacturing overhead to all units at the rate of $80 per machine hour. Production information follows: Luxury Exclusive Direct material $35 $60 Direct Labour $20 $20 Budgeted volume (units) 8‚000 15‚000 The management accountant has determined that the firm’s overhead can be identified with three activities: manufacturing
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University International Professor: Dr. Ralph Ezelle May 18‚ 2015 Actvity Based Costing Analysis for Towels & More In this case assignment‚ I will calculate the customer support and distribution costs associated with the three types of customers using a simple strategy first and allocate the costs based on revenues. Recalculate allocations using activity based costing (ABC)‚ determine contribution margin less customer support and distribution costs for both approaches
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In this file you will find overview of the work ACC 349 Week 2 Discussion Questions Discuss Question 1 What is activity-based costing? What are some of the key elements of activity-based costing? How does this method differ from a more traditional costing method? Discuss Question 2 What are value-added processes? How do you determine if a process adds value? How does identification of value-added processes help a company run more efficiently and effectively? Business
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Grading Summary These are the automatically computed results of your exam. Grades for essay questions‚ and comments from your instructor‚ are in the "Details" section below. Date Taken: 2/1/2015 Time Spent: 1 h ‚ 22 min ‚ 27 secs Points Received: 190 / 190 (100%) Question Type: # Of Questions: # Correct: Multiple Choice 10 10 Short 4 4 Grade Details - All Questions Page: 1 of 2 Question 1. Question : (TCO 1) Which of the following is NOT a difference between Financial Accounting and Managerial
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products. This can be done by first; adopting activity based costing (ABC) method as suggested by Hampton instead of the existing simple costing method in the company. ABC recognizes the relationship between activities‚ cost and products which helps to allocate cost per unit to products more accurately. The main activities that run the business must be identified and analyzed to determine cost driver for each activity. We agree to the four major activities suggested by Hampton however‚ disagree on her
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$500‚000 $520‚000 Direct Labor Hours 300‚000 hrs. 290‚000 hrs. The factory uses a predetermined overhead rate per direct labor hour to apply factory overhead. During the year jobs which cost $1‚200‚000 were completed‚ and finished goods costing $1‚000‚000 were sold. No inventories were on hand at the beginning of the year. Determine the ending balance of Work-In-Process: a. $400‚000 b. $425‚000 c. $480‚000 d. $580‚000 2. At the beginning of 2013‚ Sparky Company had direct
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