reduction in the number of parts to activity reductions and cost savings. The labor-direct-based standard cost system reflects the cost of A12 is distorted. Using the ABC system‚ according to the activities of A12 allocate the overhead cost to A12 that could find that the current overhead cost of A12 was overstated by the standard cost system. At last‚ A12 Junction Box could be identified it is an attractive and profitable product‚ at the same time‚ it demonstrates the value of ABC. Introduction Alice
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period. D. some period costs as well as some product costs. 2. During the month of August‚ direct labor cost totaled $13‚000 and direct labor cost was 20% of prime cost. If total manufacturing costs during August were $88‚000‚ the manufacturing overhead was: A. $52‚000 B. $75‚000 C. $65‚000 D. $23‚000 0.20 x Prime cost = Direct labor 0.20 x Prime cost = $13‚000 Prime cost = $65‚000 Prime cost = Direct materials + Direct labor $65‚000 = Direct materials + $13‚000 Direct materials = $52
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administrative expenses FULL ABSORPTION COSTING PRODUCT COSTS Fixed manufacturin g overhead Variable manufacturing overhead Direct materials and direct labour Work in process inventory Expenses for the period Cost of goods sold Closing inventories PERIOD COST Selling and administrative MARGINAL COSTING PRODUCT COSTS Fixed manufacturin Variable manufacturing Direct materials and 1 expenses g overhead overhead direct labour Work in process inventory Expenses for the period
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Unit Total Costs. The estimated unit costs for Hoteling Industries‚ when operating at a production and sales level of 10‚000 units‚ are as follows: Cost Item Estimated Unit Cost Direct materials $15 Direct labor 10 Variable factory overhead 8 Fixed factory overhead 5 Variable marketing 4 Fixed marketing 3 Required: (1) Identify the estimated conversion cost per unit. (2) Identify the estimated prime cost per unit. (3) Determine the estimated total variable cost per unit. (4) Compute the total
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Ex-MBA 2011-2014 ( Batch - Weekend ) Semester - 2 Subject: Managerial Accounting ------------------------------------------------- Title : Methods / techniques of cost accounting Submitted by : Vishwajeet Gaikwad – 2011G04 Submitted to : Prof. Sameer
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406 ACC 2301 INTRODUCTORY MANAGEMENT ACCOUNTING Section 011 (Monday) Final Exam‚ Winter Term 2012 (May 25th‚ 2012‚ 1:10 p.m. - 3:10 p.m. in Room TRS2-147) INSTRUCTIONS TO STUDENTS: 1. This 2-hour test consists of 5 questions (7 pages). 2. Marks total 45. 3. All questions must be answered on this paper in the spaces following the questions. Pages are not to be separated and all pages must be submitted without exception. 4. Calculator (model Royal XE24 or XE36
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consists of direct materials‚direct laborand both variable and fixed overhead. Variable costing is a costing system under which those costs of production that vary with output are treated as product costs. This would usually include direct materials‚direct laborand variable portion of manufacturing overhead. 6-2 Variable costing treats variable and fixed selling and administrative expense as period cost. 6-3 Fixed manufacturing overhead cost are shifted from one period to the next because these cost
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seen that the overhead cost increased drammatically compared to previous years from 200% to 300% (when only blu and black was produced) and the profit margin is eroded from 20% to 13‚5%. Since the beginning the cost structure was determinded by allocation of overhead cost according to the sales. And the data pushed management question the cost structure. COMPANY DATA Company is producing the following unit of products with correcponding Sales Revenues. Currently Overhead Cost structure
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amount of manufacturing overhead. The company uses relatively little direct labor. Some of JSI’s coffees are very popular and sell in large volumes‚ while a few of the newer blends sell in a very low volumes. JSI prices its coffees at manufacturing cost plus a markup of 25% with some adjustments made to keep the company’s prices competitive. For the coming year‚ JSI’s budget includes estimated manufacturing overhead cost of $2‚200‚000. JSI assigns manufacturing overhead to products on the basis
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predetermined overhead rate is based on direct labor-hours‚ the amount of overhead applied to a job is proportional to the estimated amount of direct labor-hours for the job. F 4. Indirect materials are charged to specific jobs. F 5. When a job is completed‚ the goods are transferred from the production department to the finished goods warehouse and the journal entry would include a debit to Work in Process. F 6. If the actual manufacturing overhead cost for a period exceeds the manufacturing overhead cost
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