Exercises (Group A) (15-20 min.) E 4-22A Req. 1 Plantwide overhead rate = Estimated total manufacturing costs Estimated cost allocation base = = $1‚150‚000 25‚000* direct labor hours = = $46 per direct labor hour *When calculating plantwide overhead rates‚ all direct labor hours incurred in the plant are used. (continued) E 4-22A Req. 2 Departmental overhead rate Machining Dept. overhead rate = = Finishing Dept. overhead rate Total department overhead
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Activity-based costing (ABC) is a costing methodology that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. This model assigns more indirect costs (overhead) into direct costs compared to conventional costing. Aims of model With ABC‚ a company can soundly estimate the cost elements of entire products ACTIVITIES and services. That may help inform a company’s decision to either: Identify
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Abacus Inc. has asked you price a 5 year bullet bond issue for them‚ with Price‚ Yield to Maturity and Modified Duration. There are no comparable existing issues in the secondary market either by Abacus or a competitor and so you will need to price the issue from scratch. You have the following set of US Treasury bond data and consultations with your Bank Equity Analyst and Debt Analyst suggest that a Z-spread for Abacus of 200 bps over Treasuries and a coupon rate of 6.5% should be appropriate
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Questions : - 1. How marketing environment has made impact over the last 5 years. 2. How the company has responded? 3. How the technological changes had an impact on fashion? Answers Since all the above questions are interrelated I prefer to discuss in a full package rather than mentioning each of the questions. Because all the questions are related to how the marketing environment has an impact over the last 5 years. A marketing-oriented firm looks outwards to the environment in which it
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ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has annual sales of around $1.2 million‚ a 25% increase from the previous year. The company has an aggressive growth target of reaching $3 million annual sales within the next 3 years. The CEO has been trying to find additional products that can leverage the current ABC employee skill set as well as the manufacturing facilities. ABC Company’s current financial information (before/without
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ABC adoption and implementation Abstract: The research focuses on improving the design and implementation of ABC in Jordanian manufacturing industries‚ quantitative and qualitative info have been used during the research. The main objectives of this research are listed below: 1- Figuring out the main reasons for not adopting ABC system 2- Defining factors that blocks ABC implementation 3- Defining factors that supports the procedure to implement ABC system 4- Defining factors that encourage
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ABC Analysis What is it? There is nothing simpler than a business set up- gather capital‚ invest it with a proper business plan in mind and reap the profit! However the mechanisms involved in the second step of the process involves a lot of calculations‚ prior proper planning and formulating effective business methods. Generally if it is a small business set up the steps are simple but as the business continues to expand‚ the number of assets of the company increases and to maintain these assets
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How have the values and ideas of America’s colonial past made possible our country’s present? People in the United States today do not take in consideration the impact of colonial ideas. However the journey from slavery‚ women rights‚ and the balance of power in government help determine the aspects of modern day society. Therefore‚ colonial society helped develop a structure of present day America. America today is one of the best countries in the world because there are many opportunities for everyone
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Discussion ABC system is based on the fact that for each there is a sufficiently precise and resides in it‚ the cost factor‚ changes in rates of which affect the cost of the function. Thus‚ the system applies the ABC monitors and cause-and-effect relationship between the cost drivers (database distribution) and the costs‚ and not conditional connections‚ as is customary in the traditional calculation (cimaglobal.com‚ n.d). Under the traditional technology of distribution of indirect costs‚ are made apportionments
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ABC Farm (San Pablo City) Largely a Rambutan farm fenced-off by a concrete wall‚ the area sits on an upper edge of a shallow-deep configuration of a Maar complex at the foot of Mount Obabis hill (also known as Imok hill in this Wikimapia map systems)‚ wherein a relic of what looks like a small volcanic crater rim which is still visible around 110 meters from the south flank of the farm. The Maar depression can be distinguishable the moment the concrete San Marcos-to-Palakpakin Road descends to
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