PROBLEM 2-21B Predetermined Overhead Rate; Disposition of Underapplied or Overapplied Overhead (LO1‚ LO7) CHECK FIGURE (2) Underapplied: $68‚600 Adriana Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: Computer-hours
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MOUNT SAINT VINCENT UNIVERSITY Halifax‚ Nova Scotia Department of Business & Tourism Business 3320 (All sections) Managerial Accounting I Course Outline Fall 2013 Welcome to BUSI3320 Managerial Accounting Why study Managerial Accounting? As a manager (current or future) you will need accounting information to help you make decisions that will enhance your organization. You will learn how to develop and apply this information in the real world. Hopefully you will learn critical thinking skills
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1. (TCO A) Wages paid to the factory supply shop foreman are considered an example of: (Points: 5) Direct Labor - yes‚ Period Cost - yes Direct Labor - yes‚ Period Cost - No Direct Labor - no ‚ Period Cost - yes Direct Labor - no ‚ Period Cost - no 2. (TCO A) Rent on a manufacturing plant is an element of: (Points: 5) Conversion cost - yes‚ period cost - no Conversion cost - yes‚ period cost - yes Conversion cost - no‚ period
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rapidly changing environment. Even though it does not tell us the fair market value of a certain item‚ it gives us an idea of how the price has changed as time passes. It allows us to record the depreciation and forecast the future costs. b. 1-8 2-4 A lotion bundle consists of 2 cases of 4oz‚ 4 cases of 8oz and 1 case of 12oz bottles. For each lotion bundle: Revenue=2*$36+4*$66+1*72=$408‚ Variable cost=2*$13+4*$24.5+1*27=$151 Contribution margin=2*$23+4*$41.5+1*45=$257. Therefore‚
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000 x 100‚000 = 99‚406 289‚720 1‚720 x 100‚000 = 594 289‚720 Syrup Sugar Joint costs 99‚406/20‚000 = $4.97 594/1‚000 = $0.59 Costs beyond split-off 12‚000/20‚000 = $0.6 280/1‚000 = $0.28 Unit Cost $5.57 $0.87 a. Answer: The cost of syrup is $4.70/unit if the sugar is considered a by-product and the gross margin from its sale is considered to be a reduction of syrup costs. b. Calculate product costs assuming this company decided to make and sell as much maple sugar
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1. The Allen Company uses a job-order costing system. The following activity took place during the month of March: Required: Prepare journal entries to record the information above. Key your entries by the letters a through i. Assume all purchases are made on account. 1 2 2. Hirpara Inc. has provided the following data for July: Required: Prepare T-accounts for Raw Materials‚ Work in Process‚ Finished Goods‚ and Manufacturing Overhead‚ and Cost of Goods Sold. Record the beginning
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MANAGERIAL AND COST ACCOUNTING LARRY M. WALTHER & CHRISTOPHER J. SKOUSEN DOWNLOAD FREE TEXT BOOKS AT BOOKBOON.COM Managerial and Cost Accounting © 2009 Larry M. Walther‚ under nonexclusive license to Christopher J. Skousen & Ventus Publishing ApS. All material in this publication is copyrighted‚ and the exclusive property of Larry M. Walther or his licensors (all rights reserved). ISBN 978-87-7681-491-5 Download free books at BookBooN.com 2 Managerial and Cost Accounting
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BE12-1‚ BE12-4‚ BE12-5‚ BE12-6 Exercise: E12-5 BE 12-1 $450‚000 ÷ $50‚000 = 9 years BE 12-4 | | CashFlows | X | 9% DiscountFactor | = | PresentValue | | | | | | | | Present value of net annual cash flowsPresent value of salvage valueCapital investmentNet present value | | $34‚000 0 | XX | 5.53482 .50187 | == | ($188‚184)( 0)( 188‚184)( 200‚000)($ (11‚816) | The reduction in downtime would have to have a present value of at least $11‚816 in order for the project
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Not everything that can be counted counts‚ and not everything that counts can be counted. Albert Einstein LG Electronics‚ Inc established in 1958 and has its headquarter in Seoul‚ South Korea is one of the leading companies in the world which produces electronic and communication devices‚ IT productions. LG which stands for “Life’s Good” determines what the company is striving for. One of the main aim of LG Electronics is ensuring to make the dgigtal life better for its customers. Eco- Friendly
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1. The overhead allocation rate used in the 1987 model year strategy study at the Automotive Component & Fabrication Plant (ACF) was 435% of direct labor dollar cost. Calculated the overhead allocation rate using the 1987 model year budget. Calculate the overhead allocation rate for each of the model years 1988 through 1990. Are the changes since 1987 in overhead allocation rates significant? Why have these changes occurred? Solution: Based on the given info we calculate Overhead Allocation
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