com/Senior-Accountant-Manager-Job-San-Juan-PR-US-130837373.aspx Questions and answers 1. Under what conditions is direct labor a valid basis for allocating overhead? Direct labor is a valid basis for allocating overhead when: (a) direct labor constitutes a significant part of total product cost‚ and (b) there is a high correlation between direct labor and changes in the amount of overhead costs. 2. What has happened in recent industrial history to reduce the usefulness of direct labor as the library
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Using CVP as a mean for Prediction 4 3- Conclusion 6 4- Reference 6 1-Introduction A good understanding of the relationship between cost and activities in a company is necessary for managers in every type of organization and this clothing manufacturing company is concerned because they do not have this understanding and what benefits it has for guiding managers to understand the changes and effects different future business decisions and alteration of those decisions have
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While I was looking for an appropriate topic for research‚ I found an interesting publication‚ which fitted best to the subject (ethics in managerial accounting issues) and also included 5 good examples examples of possible problems associated with the field. The method of the study seemed unclear‚ especially considering the connection between the serial number of a dollar bill and the question to which the respondent had to answer in the end (in my work I will constantly refer back to the text
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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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BSAD 526 Managerial Accounting Case 8-35 Introduction Wyndham Stores operates a regional chain of upscale department stores. They plan to open another store in a prosperous and growing suburban area. The company’s Vice President of Marketing is in favor of buying the new building site and building a new building on the property. The projected cost for the new building is $14 million‚ according to the vice president of marketing. The problem with the vice president’s
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and Y). The overhead costs ($84‚000) have been divided into three cost pools that use the following activity drivers: Product Number of Setups Machine Hours Packing Orders X 10 500 75 Y 10 2‚000 175 Cost per pool $9‚000 $60‚000 $15‚000 What is the allocation rate per setup using activity-based costing? a. $900. b. $450. c. $9‚000. d. $2‚100. ____ 17. The Xiang plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming
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Exercise 3-13. Costing Units Completed and Ending Work in Process [LO 2‚3‚4] At the start of November‚ Penco Refinery had Work in Process inventory consisting of 4‚000 units that were 90 percent complete with respect to materials and 50 percent complete with respect to conversion costs. The cost of the units was $38‚000 ($25‚000 of material cost and $13‚000 of labor and overhead). During November‚ the company started 44‚000 units and incurred $421‚970 of material cost and $394‚880 of labor and
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| Appraised Value | Percent of Total | Apportioned Cost | Building | $514‚250 | 55% ($514‚250/$935‚000) | $495‚000 ($900‚000 x 55%) | Land | 271‚150 | 29% ($271‚150/$935‚000) | 261‚000 ($900‚000 x 29%) | Land Improvements | 65‚450 | 7% ($65‚450/$935‚000) | 63‚000 ($900‚000 x 7%) | Four Vehicles | 84‚150 | 9% ($84‚150/$935‚000) | 81‚000 ($900‚000 x 9%) | Totals | $935‚000 | 100% | $900‚000 | 1. Prepare a table to allocate the lump-sum purchase price to the separate assets purchased
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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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Rahul Balhara Accounting and Finance: Managerial Use and Analysis MAR12 Sec C Financial Statement Analysis Project -- A Comparative Analysis of Kohl’s Corporation and J.C. Penney Co MAR12 Sec C Analysis of Kohl’s Corporation and J.C. Penney Corporation J.C. Penney was founded by James Cash Penney in 1902. This Plano‚ Texas based company is presently providing family apparel and footwear‚ accessories‚ jewelries‚ beauty products and home furnishings via 1‚100 department stores as of
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