costs that were incurred during the current year. Evaluate whether the cost is: 1. A product cost or a period cost 2. Variable or fixed in terms of behavior 3. For the product cost‚ whether it is classified as direct material‚ direct labor‚ or manufacturing overhead No. 1 Descriptions Product Cost Period Variable Fixed DM Product Cost DL MOH Tire cost incurred by Ford Motor Company Sales Commissions paid to the sales force of 2 Dell Computer Wood glue consumed in the manufacture of 3 Thomasville
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in North Sea oil fields. (The Norwegian currency is the krone‚ which is denoted by Nkr.) The company uses a sob-order costing system arid applies manufacturing overhead cost to jobs on the basis of direct labor-hours. At the beginning of the year‚ the following estimates were made for the purpose of computing the predetermined overhead rate: manufacturing overhead cost‚ Nkr360‚000; and direct labor-hours‚ 900. The following transactions took place during the year (all purchases and services
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Chapter 3 Solutions‚ 3rd day Exercise 3-13 (15 minutes) 1. | Actual manufacturing overhead costs | | $ 48‚000 | | Manufacturing overhead applied: 10‚000 MH × $5 per MH | | 50‚000 | | Overapplied overhead cost | | $ 2‚000 | | | | | 2. | Direct materials: | | | | Raw materials inventory‚ beginning | $ 8‚000 | | | Add: Purchases of raw materials | 32‚000 | | | Raw materials available for use | 40‚000 | | | Deduct: Raw materials inventory
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SECTION A Answer one question from this section Read the item below and then answer the question that follows. Rolls-Royce plc Aerospace engineering multinational Rolls-Royce plc is one of the UK’s leading manufacturing businesses. It has a global workforce of 55‚000 employees‚ 24‚000 of whom are in the UK. The company’s UK staff are employed at four locations in the East Midlands‚ as well as 1‚500 at five sites in the North West and 2‚400 employees at six locations across Scotland. In November
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EXERCISE2-2 Classifying Manufacturing Costs THE PC WORKS ASSEMBLES CUSTOM COMPUTERS FROM COMPONENTS SUPPLIED BY VARIOUS MANUFACTURERS. THE COMPANY IS VERY SMALL AND ITS ASSEMBLY SHOP AND RETAIL SALES STORE ARE HOUSED IN A SINGLE FACILITY IN A REDMOND‚ WASHINGTON‚ INDUSTRIAL PARK. LISTED BELOW ARE SOME OF THE COSTS THAT ARE INCURRED AT THE COMPANY. For each cost‚ indicate whether it would most likely be classified as direct labor‚ direct materials‚ manufacturing
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for more homes and factories to be built in order to support the growing population. With the constructing of more factories to support the rise in population came the growth of industry and manufacturing. The growth of the city‚ along with these factories‚ brought about several issues other than the manufacturing of valuable goods. The overcrowding from the population growth and the smog‚ smoke‚ and other toxic waste from the factories brought about the issue of pollution and bad living conditions
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Technology in Manufacturing…………………………..6 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3.1.7 3.1.8 Product and productivity…………………………………………….6 Collaboration………………………………………………………...8 Lean Mass Production……………………………………………….8 Energy Sustainability………………………………………………..8 Competitive in Global Marketplace…………………………………9 Technology creates new jobs………………………………………...9 Increase sales opportunities…………………………………………10 Advertising strategies……………………………………………….10 3.2 Benefits of Biotechnology in Pharmaceutical Manufacturing…………………
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Period Cost rather that Product Cost. This type of cost is unrelated to manufacturing overhead and cost of goods sold. | Manufacturing Overhead:Manufacturing overhead includes all costs of manufacturing such as indirect material‚ indirect labor‚ property taxes‚ maintenance and repairs‚ insurance etc. It excludes the direct material and direct labor. The selling and administrative expenses will not be reported in the manufacturing overhead since they are not incurred for the production of the goods
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Littleton Manufacturing facilitates poor upward and downward communication throughout all levels of the organization. As a result of the ineffective communication system‚ Littleton faces a number of issues which ultimately has affected the bottom line of the company. Key challenges to note are low employee morale‚ low level of unity within the organization‚ poorly designed organizational structure and confusion in interpreting procedures and rules. Improving the accuracy and speed of the flow
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wages of refinery security guards employed by ExxonMobil Corporation. Product cost‚ Variable‚ Manufacturing Overhead 5. The salary of a financial vice president of Hewlett Packard. Period Cost‚ Fixed 6. Advertising costs of Coca-Cola. Period Cost‚ Fixed 7. Straight-line depreciation on factory machinery of Boeing Corporation. Prodcut Cost‚ Fixed‚ Manufacturing Overhead 8. Wages of assembly-line personnel of Whirlpool Corporation. Product Cost‚ Variable
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