The writer is very fast, professional and responded to the review request fast also. Thank you.
Presentation/PPT
27/08/2022
Q 1 Describe activity based management.
Q 2 Why might an organization want to track customer-related costs?
Q3 Abdullah Motors manufactures cars and currently uses only 50% of its manufacturing facility (20,000 cars). The company could utilize more of its facility by producing its own tires and using the total capacity. It currently purchases tires at $30 per unit. Abdullah would incur $12 per unit for direct materials, $10 for direct labor, and $24 for overhead (which is 30% variable) if it produces the tires.
a. Should Abdullah Motors make or buy the tires? Provide calculations that support your answer.
b. Suppose Abdullah Motors could rent the unused portion of its plant and receive $1,500 a month. Should the company make or buy the tires? Provide calculations that support your answer
c. List two qualitative factors that could affect this decision.
4. Explain the methods used to allocated Supporting department costs
The SABIC Company undertakes the following activities in its production operation and incurred the following costs during the first half of 20×2:
Harvest oranges $25,000
Prepare oranges for processing 20,000
Extract juice from oranges 18,000
Process juice into orange juice concentrate, orange juice, or orange popsicles 30,000
Package completed products 9,000
In addition to the costs listed above, processing the juice into 3 final products involves the use of 2 machines, each of which incurred depreciation costs of $10,000 for the first half of 20×2. Each product requires a different set up on the processing machines, so SABIC normally sets up the machines to produce concentrate for the first week of each month using 80 machine hours. The machine is then set up to produce orange juice for the next 2 weeks using 160 machine hours. Finally, workers set up the same machines to produce orange popsicles during the last week of each month, using 80 machine hours.
During the first half of 20×2, 20% of the oranges harvested were turned into orange juice concentrate, 50% were processed into orange juice, and 30% became orange popsicles. The orange juice concentrate operation takes up 40% of SABIC’s total factory space. Regular orange juice and orange popsicles occupy 35% and 25%, respectively.
a. Calculate the total costs included in the processing activity cost pool.
b. Choose a cost driver for the processing activity and explain your choice. Calculate the ABC allocation rate for this activity.
c. Allocate processing costs to each product line using the ABC allocation rate developed in part (b).
Q 2 PNG Corporation designs and builds roller coasters for amusement parks. At the end of 20×1, managers estimated overhead costs for 20×2 of $150,000 based on expected production of 5 roller coasters (5 jobs) using 5,000 labor hours each. Actual overhead costs for 20×2 were $170,000. PNG actually designed and built 6 roller coasters (6 jobs) with the following direct labor usage and overhead costs:
Actual Overhead Cost actual Labor Hours
The Big Dipper (job 1) $28,000 3,500
The Ultimate Scream (job 2) 35,000 4,000
Loop Me (job 3) 27,000 5,000
The Screaming Chicken (job 4) 40,000 2,500
You Don’t Know Coasters (job 5) 25,000 6,000
Old Faithful (job 6) 15,000 4,500
Assume PNG uses a normal costing system with the number of labor hours as the overhead allocation base.
a. Calculate the allocation rate for 20×2.
b. Calculate the total corporate over- or underapplied overhead (specify which) for 20×2.
Q3 Following are production data for a process costing system.
Beginning work in process, 30% complete 12,000 units
Started 90,000 units
Ending work in process, 70% complete 8,000 units
Costs:
Beginning work in process:
Direct Materials $ 28,800
Conversion costs 5,220
Materials used during the period 216,000
Conversion costs incurred during the period 139,200
a. Using the FIFO basis, prepare a process costing report.
b. Write out the journal entries for the costs incurred and the work performed this period under the FIFO method.
Q 4 Explain the differences between the weighted average and FIFO process costing methods.
The writer is very fast, professional and responded to the review request fast also. Thank you.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more