Q1) Seligram is using a single pool cost system. In the single cost pool system‚ all products consume direct labor and overhead in the same proportion. The problem with this is that some products need more direct labor while others require more automated machinery operation. Therefore‚ the proportion of direct labor used to the proportion of direct machining used for each component differs‚ while they are all being charged at the same rate. The shift in the industry from labor intensive testing
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Case 3: Seligram‚ Inc. Group: Question 2: (a) Burden on labor cost basis Product DL $ Burden =145% *DL $ Total ICA 917.00 1329.65 2246.65 ICB 2051.00 2973.95 5024.95 Capacitor 1094.00 1586.30 2680.30 Amplifier 525.00 761.25 1286.25 Diode 519.00 752.55 1271.55 (b) Burden on two cost pools basis Proposed by MA Burden on MH Total cost Product DL $ Burden =DL $*20% 80$/MH ICA 917.00 183.40 1480 2580.40 ICB 2051.00 410.20 3200 5661.20 Capacitor 1094
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Universal Electronics Inc. Universal Electronics‚ Inc. was founded in 1986 and is currently headquartered in Cypress‚ Ca with 1‚843 employees. UEI sells pre-programmed universal wireless control products‚ including remote controls‚ wireless keyboards‚ and gaming controls in the USA‚ Europe‚ Australia‚ New Zealand‚ South Africa‚ the` Middle East‚ Mexico‚ Asia‚ and Latin America. With the development of software and firmware‚ the company’s devices can virtually control all infrared capable televisions
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Case: Arrow Electronics Inc. Introduction Arrow Electronics Inc. is faced with a difficult‚ time-constrained choice of incorporating Express in its distribution channel or not. Arrow must consider its market dynamics and the value it adds to its suppliers and customers. Arrow also must determine how Express will affect its business model and selling efforts before making a final decision. Market Dynamics and Value to Suppliers and Customers Arrow is involved in a third-party delegated channel
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1. What caused the existing system at ETO to fail? According to information from the case‚ the existing system at ETO failed largely due to the single cost pool accounting system where all products consume direct labour and overhead in the same proportion. However‚ some products require more direct labor hours‚ while others are produced using automated machine operation. The trend of direct labor obsolescence also biased the calculation rate; hence‚ overall product cost assessment is misleading
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Case 23-2: Industrial Electronics Inc. Issue: Evaluate the proposed bonus system. Background: “My division had another great year last year. We all worked hard‚ and the results were there. But again we got no reward for our hard work. It’s very frustrating.” Division Manager. KSF • Innovation. • Good cost control due to price competition. Internal Environment • Industrial Electronics Inc. sells a wide range of electronic equipment. (Like EVERY other case!!!) • $8 Billion in sales
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ABC Inc. Case Study Analysis University of Phoenix Introduction The ABC‚ Incorporation (Inc.) has provided a workplace that has a friendly environment for all the employees. ABC‚ Inc.‚ continues to recruit potential employees who are educated and who possess the determination and desire to perform at the highest standards. By doing so‚ the company will be able to remain successful in the business world. Had Robins consulted an experienced employee for additional solutions he could have avoided
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Background information Global Electronics‚ Inc. (GEI)‚ headquartered in Sarasota‚ Florida‚ designs‚ manufactures‚ and markets discrete power semiconductors and analog‚ digital‚ mixed-signal‚ and radiation-hardened integrated circuits for signal processing and power-control applications. The company employs about 2‚300 people at its three U.S. fabrication facilities (located in Huntsville‚ Alabama; Evansville‚ Indiana; and Reading‚ Pennsylvania)‚ and has 4‚000 employees at its assembly and test
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Case Study Eastern Electronic‚ inc. Selecting a Program Manager The following Case study deals with a problematic situation within a company‚ named Eastern Electronic inc. Since the company developed a new BAT program‚ the need for a new Program Manager emerges. This case study will firstly illustrate the needed skills and properties the Program Manager Job requires. Afterwards‚ this paper will compare the skills and properties of the two perspective Job candidates and recommend a decision
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------------------------------------------------- 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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