follows: Department Annual indirect costs Production 560 000 EUR Assembly 240 000 EUR TOTAL 800 000 EUR Calculate the full cost per unit for Product X and Product Y using traditional full costing approach (apportioning total overhead based on total direct labor cost) Please briefly explain your calculations. Problem No. 3 The Busy Ball Company makes two types of bouncing balls; one has a hollow center and the other has a solid center. The same equipment is used to produce the balls
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Christopher Bonner BUS630: Managerial Accounting (NAH1313A) Instructor; Brian Shaw Middlehurst House Analysis: Case 9A in Chapter 9 Middlehurst House Analysis: Case 9A in Chapter 9 As we are familiar with the case, we feel that two very important issues have not been addressed which in sufficient detail, given that it may influence the profitability of the business venture. These are General: (1) The allocation of capital by both the partners and the stockholders (2) Auditing of
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Update Product Marketing Concept & Refine Corporate Strategy - Long Term • Perform a market/competitive analysis of the US market to inform future decisions • Improve accuracy of forecasting • Consider changing product mix based on market/customer demand • Contract with additional customers to purchase the RC1 unit • Expand RC2 wholesale distribution to online channels • Invest profits into additional R&D COMPANY OVERVIEW Breeden
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Case 16 Movie Exhibition The strategic issue in the movie exhibition case includes the decline in attendees. The customer base is declining and is hurting the net income of the exhibitions. The most profitable sectors are the concessions and advertising. An increase in the price of ticket sales may drive attendees even further away. If attendees keep decreasing, advertisers will withdraw their purchases and the entities will be left with concessions. The industry as a whole is feeling
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24,000 | 5,400 | 600 | 60,000 | Total Operationg Income | $10,000 | $80,000 | $2,070 | $300 | $20,370 | Return on Sales | 13.3% | 13.3% | 14.8% | 18.2% | 13.50% | Exhibit 2: Direct Cost and Activity Cost Drivers | Blue | Black | Red | Purple | Total | Production Sales Volume | 50,000 | 40,000 | 9,000 | 1,000 | 100,000 | Unit Selling Price | $1.5 | $1
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Managerial Accountants Costing Managerial Accounting has acquired more importance during the past years. The process of managerial costing consists of “measuring and assigning value to a company’s operation” (Hoffelder, 2012). Because of the value that this has acquired for many companies, is that the Institute of Management Accountants also referred as the IMA, have now been working on guidelines that detail the principles of managerial costing that are “unrelated to the cost modeling commonly
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_______________ (Please include your name in the file.) I. Classifications (30 points total) Part A: Classifications (2 points each – 22 points total) Determine the classification for each cost item based on 2 different schemes. First, determine cost behavior: whether the cost is variable or fixed (relative to the number of units produced); check the appropriate space. Then, determine whether the cost is a product or a period cost; check the appropriate
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Chapter 4 DQ’s 1. Overhead costs are not directly related to production volume, therefore cannot be traced to units of product in the same way that DM and DL can. 2. Plantwide Rate, Departmental Rate, and Activity-Based Costing 3. These measures are usually readily available in most manufacturing settings and are closely related to volume-bases measures. 4. It is easier to use, only one rate to be allocated to all products. 5. Overhead costs are logically related to the
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company that has a sound balance scorecard will thrive in meeting their organizational goals and commitment. Atkinson, A. A., Kaplan, R. S., Matsumura, E. M., & Young, S. M. (2011). The Balanced Scorecard and Strategy Map. In Management Accounting, Information for Decision Making and Strategy Execution (p. 67). Prentice
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ACTIVITY-BASED COSTING McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. ACTIVITY BASED COSTING Traditional costing system 1. Direct and indirect costs are allocated to process centres or major departments ABC System 1. The direct and indirect costs are allocated to activities like Purchases, Material handling, Producing the goods, machine set ups, Supervising production workers, Inspecting finished goods, Dispatching good to customers 2.Cost
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