------------------------------------------------- Subject: Managerial Accounting Case 1 Seligram In the Seligram case‚ the existing cost accounting system measured two components of cost: direct labor and burden. All burden cost‚ which is the overhead‚ was grouped into a single cost pool and was calculated only by using a burden rate per direct labor dollar. This may cause problems since direct labor and overhead are not consumed by the products in the same proportion. Simply using the same burden
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Compare assigned costs per product under both methods. Why has Activity-based costing changed the total costs assigned to each product? By comparing the two cost assigned methods‚ there are some differences existed: Unit Product Cost: | Gadgets | Smidgets | Smadgets | Smadgets | Traditional Costing Method | 400 | 1‚000 | 1‚350 | 850 | Activity-Based Costing Method | 590 | 1‚100 | 760 | 1‚250 | Overhead Cost | Widgets | Gadgets | Smidgets | Smadgets | Traditional Costing Method | 200‚000 |
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Chapter 2 Cost Terms‚ Concepts‚ and Classifications Solutions to Questions 2-15 Direct labour cost (46 hours $18 per hour) $828 Manufacturing overhead cost (6 hours $9 per hour) 54 Total wages earned $882 2-16 Direct labour cost (35 hours $26 per hour) $910 Manufacturing overhead cost (5 hours $26 per hour) 130 Total wages earned $1‚040 Problem 2-15 (30 minutes) Name of the Cost Variable Cost Fixed Cost Product Cost Period (Selling
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Johnna HCS/405 Health Care Financial Accounting Instructor: Donna Pearson “Concern about the growth of healthcare a cost is widespread and continuing increases in hospital cost per day are a significant component of this concern” (2009). In this paper it shows an example of how healthcare cost is constantly increasing and what the hospitals have to do to keep up with the increase of costs. This paper is a simulation paper that analyzes financial indicators for decision making. In
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snhu.edu Managerial Accounting - ACC 500 CHAPTER 15 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDAMENTAL ASSIGNMENT MATERIAL ADDITIONAL ASSIGNMENT MATERIAL EXCEL‚ COLLAB.‚ & INTERNET EXERCISES LO1: Read and interpret the basic financial statements. 19‚ 20‚ 25‚ 30 36 43 LO2: Analyze typical business transactions using the balance sheet equation. A1‚ A2‚ B1‚ B2 22‚ 23‚ 26‚ 27 28‚ 29‚ 30‚ 31 36‚ 37 41‚ 42 LO3: Distinguish between the accrual basis of accounting and the
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Catherine Gamero 4/26/12 Week One Discussion Questions • What are the four basic financial statements? What is the primary purpose of each of the four basic financial statements? In your opinion‚ which financial statement is the most important? Explain why. The four basic financial statements are the balance sheet‚ income statement‚ statement of retained earnings‚ and statement of cash flows. The balance sheet shows what it owes and owns. Income statement shows how the company did during
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CHAPTER 3 PROBLEM 3-43 (35 MINUTES) 1. Predetermined overhead rate = budgeted overhead ÷ budgeted direct-labor cost = $2‚730‚000 ÷ $2‚100‚000 = 130% of direct labor cost 2. Additions (debits) total $7‚802‚500 [$2‚800‚000 + $2‚175‚000 + ($2‚175‚000 x 130%)]. 3. The finished-goods inventory consisted of job no. 3154‚ which cost $175‚750 [$78‚000 + $42‚500 + ($42‚500 x 130%)]. 4. Since there is no work in process at year-end‚ all amounts in the Work-in-Process account must
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Problem 1 Page 40 a- Cost of goods manufactured = Direct cost + Indirect cost = [Direct Cost of Material + Direct Cost of Labor] + [Indirect Cost of Material + Indirect Cost of Labor + Utilities Overhead] = Total Cost of Material + Total Cost of Labor + Utilities Overhead = 120‚000 + 90‚000 + 40‚000 = $ 250‚000 b- Total Cost of Operation = Cost of goods manufactured + Selling‚ General admin. and expenses. = 250‚000 + 60‚000 = $ 310‚000 c- Prime Cost =Direct Material
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SABIN ELECTRONICS THIS YEAR LAST YEAR 1. A.) Current Assets $ 1‚520‚000 $ 1‚090‚000 Current Liabilities $ 800‚000 $ 430‚000 Working Capital $ 720‚000 $ 660‚000 B.) Current Assets $ 1‚520‚000 $ 1‚090‚000 Current Liabilities $ 800‚000 $ 430‚000 Current Ratio 1.90 to 1 2.53 to 1 (c.assets / c.liabilities) C.) Quick Assets * Cash + Marketable Securities + Accts. Recievable $ 550‚000
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time are avail-able annually on the machine. Since each drum requires 0.8 hours of welding time‚ annual production is limited to 2‚500 drums. At present‚ the welding machine is used exclusively to make the XSX drums. The accounting department has provided the following financial data concerning the XSX drums: Management believes 3‚000 XSX drums could be sold each year if the company had sufficient manufacturing capacity. As an alternative to adding another welding machine‚ management has looked
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