budget includes estimated manufacturing overhead cost of $3,000,000. CBI assigns manufacturing overhead to products on the basis of direct labor-hours. The expected direct labor cost totals $600,000, which represents 50,000 hours of direct labor time. Based on the sales budget and expected raw materials costs, the company will purchase and use $6,000,000 of raw materials (mostly coffee beans) during the year. The expected costs for direct materials and direct labor for one-pound bags of two of the company’s
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of each year, based on actual expenses in prior years, the general industry condition and competitive trends. Costs continue to rise for customers at normal circumstances which may due to various external reasons like inflations, economic situations etc. The current costing system could not cope with the highly competitive market, and the inflation will cause the costs keep increasing to a level that the selling price might not able to cover it. It is because the selling price in based on actual expenses
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Time-Driven ABC Companies have shied away from activity based costing, because it was not an accurate assessment of operations, time consuming and too expensive to build and maintain. As a result managers have veered away from using traditional ABC in their organizations, and needed to find a solution to the problem. The new approach relies on informed managerial estimates rather than on employee surveys. It also provides managers with a far more flexible cost model to capture all the complex
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POLYSAR Canada¶s largest chemical company. The Rubber Group accounts for 46% of Polysar¶s sales. Primary products for this group are butyl and halobutyl. Principal customers for these products are tire manufacturers. Rubber Group has two divisions ± NASA (North America & South America) ± EROW (Europe & elsewhere) POLYSAR Butyl is manufactured by NASA at its Sarnia 2 plant, and by EROW at its Antwerp plant. Sarnia 2 is a relatively new facility, dedicated entirely to butyl production
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unit 100,000/4,000 400,000/8,000 $25 $50 (b.) Full production cost under Activity Based Costing method. | Product X | Product Y | Direct material cost/unit | $20 | $10 | Direct labor cost/unit | $0.20 | $0.80 | Total direct cost | $20.20 | $10.80 | Overhead cost/unit (Working 2) | $65.75 | $29.625 | Full Production Cost / Unit | $85.95 | $40.425 | Working 2 Activity | Total cost ($) | Cost driver | Total number | Product X($) | Product Y($) | Batch setup
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materials, we make sure that our products are eco-friendly and hazard free. Cheaper than products currently in the market, we make sure that you get more value for your money by offering products of upmost quality. Our signature product is a plant-based paint like no other. The Opuntia ficus-indica is an arid-climate, edible plant characteristic of its rich nutrient and mineral content. Serving as a food in countries like Mexico, it can also be used as a primary component in insulating oils. Its properties
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Time Driven Activity Based Costing Executive Summary Heryzin Baskerville National Graduate School of Quality Management Robert Kaplan introduced Activity Based Costing (ABC) in the late 1980s. It can be considered as the modern alternative to absorption costing, and allowing managers to better understand product and customer net profitability. Kaplan view is that the ABC target state will provide organization leadership with better information to make value-based decisions. Over the past
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has decided to adopt the balanced scorecard. The balanced scorecard translates an organization’s mission and strategy into operational objectives and performance measures for four different perspectives. The President would like for the managerial accounting team to continue research and explain how to use a balanced scorecard to measure unethical behavior with EEC. First as the team is going to obtain research in how to transition to a balanced scorecard let us review the first part of the research
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study be conducted, and an activity-based costing analysis was undertaken in one of the company plants. After the study, a breakeven analysis was completed along with target profit projections. For this task, you will be using the attached “Competition Bikes Inc.” storyline. Task: A. Prepare a summary report to the vice president of the company in which you do the following: 1. Recommend whether the company should change its costing method to activity-based costing. Note: The
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Managerial Accounting and Organizational Controls Unit 1 Individual Project By Allen Neff For this project I will be using the supplied data below: Suppose we are running a restaurant and have identified certain costs along with the number of annual units sold of 1000. Item: Raw Materials (cost for hamburgers) Total Annual Cost: 650 Item: Building Rent Total Annual Cost: 9000 Raw materials: The raw materials for
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