Ten years ago our electric motor business was in real trouble. Low labor rates allowed the Eastern Bloc countries to sell standard motors at prices we were unable to match. We had become the high-cost producer in the industry. Consequently‚ we decided to change our strategy and become a specialty motor producer. Once we adopted our new strategy‚ we discovered that while our existing cost system was adequate for costing standard motors‚ it was giving us inaccurate information when we used it to
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Background: The Electric Motor Works (EMW) was Siemen’s primary producer of low wattage alternating current (A/C) motors‚ which sales volume was contributed by 80% of standard motors and 20% of customized motors. Although the firm had started to alter their program and had expanded the business in 1974‚ they still could not decline the price sufficiently to compete with the lower labour rate in Eastern Bloc competitors. Instead of mass production‚ EMW changed their strategy to manufacture efficiently
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Overhead cost per order (order processing rate) = DM$13800000/65625 =DM$210.29 per order Overhead cost per special component (special component rate) = DM$19500000/325000= DM$60 per special component In order to adapt the new strategy of SEMW‚ new costing system uses the order processing rate and special component rate to trace the overhead costs of order processing and special components handling to the specific product. In the first formula‚ the order processing cost which is removed from support
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type of food may differ due to the need for hotter food in the cold weather. 2 Problem Two Job-Order Costing Required: 1. Determine the ending balance of the following account at the end of December to help Sadaf’s prepare for the 2009 annual financial statements. (Hint: calculate the predetermined overhead rate to allocate overhead.) Please round to nearest dollar. a. Work in Process for chairs (not including lounge chairs) b.
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1 ELECTRIC MOTORS I. Introduction Electric motors are considered to be important mechanical devices. They usually convert the electrical energy coming from the mechanical device into its kinetic energy to make it work (Petingco and Resurreccion‚ 2011). In this exercise‚ the students were tasked to use an example of an electric motor‚ identify its parts‚ and make it work. All electrical motors are equipped with stator and rotor. Stator is known as the stationary part of an electric motor
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Process Costing Characteristics of Process Manufacturing • Since each product within a product line passing through the processes would receive similar ‘‘doses’’ of materials‚ labor‚ and overhead‚ costs are accumulated by process. • Process costing works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs Units are homogeneous and subjected to the same operations for a given process and each unit produced in a
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Job Costing Job costing is the process of tracking the expenses incurred on a job against the revenue produced by that job. Job costing is an important tool for those who are pairing a relatively high dollar volume per customer with a relatively low number of customers. For example‚ building contractors‚ subcontractors‚ architects and consultants often use job costing‚ whereas a hardware store or convenience store would not use job costing. Job costing using accounting software enables you to track
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Process Costing Vs. Job Order Costing Manufacturers use different types of costing systems to allocate production costs to their products and services. Two types of common product costing systems are process costing and job-order costing. While each system applies the same production costs to products‚ there are distinct variances in the application method. Process Costing o Process costing applies production costs to products based on the process they go through in the manufacturing process.
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PAPER On Process Costing Submitted in fulfillment of the requirements for the 3rd SEM MBA Management Accounting and Control Systems Submitted to: Submitted by: Prof. G V M Sharma Vandana Rajput Dept. of MBA 1PB11MBA60 INTRODUCTION: Process costing is a form of operations costing which is used where standardized homogeneous goods are produced. This costing method is used
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How to Make a Simple Electric Motor Energy comes in many forms. Electric energy can be converted into useful work‚ or mechanical energy‚ by machines called electric motors. Electric motors work due to electromagnetic interactions: the interaction ofcurrent (the flow of electrons) and a magnetic field. Problem Find out how to make a simple electric motor. Materials Needed D battery Insulated 22G wire 2 large-eyed‚ long‚ metal sewing needles (the eyes must be large enough to fit the wire through)
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