purchased a computerized video QC system for $250,000, which included minicomputer, fifteen video cameras, and other update hardware. The new system takes pictures of the different units in process and then they are compared to the pictures of a good unit and when there was a difference the QC engineers removed the bad unit. When the new system was implemented it cut the QC inspectors with two QC engineers, so the salaries for the new QC engineers along with the system has been included as factory overhead
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the same DM and DL costs. But under the revised costing system, set-up labor is also a direct cost. The major difference is how the overhead is allocated in different system. In the standard system, the total indirect cost is $682688. The overhead rate is 439%，which is equal to indirect cost divided by total running labor $15600. To calculate the overhead of each product, we need to multiply the indirect cost by 439%. In the revised cost system, the overhead can divided into material overhead
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Question 1) Consider the following scenario: Two accountants are having a discussion about whether or not their company should use an activity-based costing system. • Contribute to a discussion thread. Take the side of the argument assigned to you by the instructor and, together with your group, create a list of 5 advantages or 5 disadvantages, to correspond with your group's assignment. • Post your group's list in the [Main] forum as an attachment. • Compare the posts from both groups and
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XIAO ZHANG Assignment: 1. Use the information in case Exhibits 1 and 2 and other necessary data in the case on activities and costs to develop an activity-based cost system for JBI to use to determine customer profitability. Use this system to estimate customer profitability for Saver Superstore, Oscar’s OddLots, Midwellen Supermarket, and Downtown Retail. * Answer: * Product handling allocation rate:672,000/800,000=$0
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of EEC while using a job order costing system, which is a costing system where costs are to be collected then assigned to different units of production for each unique job, or process costing system, which is a costing system that is known to accumulate production costs by using a department or process’s data over a specific period of time in order to report the costs of a new product. I am going to focus and highlight the many differences within the various systems in use to do this job. I will also
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------------------------------------------------- Top of Form Question 1: Score 2.5/5 | | | Your response | Correct response | Exercise 7-1 Variable and Absorption Costing Unit Product Costs [LO1] | Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The sounding bars are cast from brass and hand-filed
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. Managerial Accounting (ACC560) 04/25/2015 Introduction Activity-Based Costing (ABC), a costing system which is more reliable than traditional cost accounting, has been implemented in manufacturing companies for more than a decade. In many cases, the ABC implementation has contributed substantially to a more efficient use of overhead resources, and therefore, has led to an impressive cost savings. Many service companies, in their experience of high overhead and high capital cost
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| | [pic] Executive Summary The purpose of this report was to analysis costing system at John Deere Component Works (B). Specific objectives were to analyze the reports prepared by William and Vintila and offer recommendations on their suggestion. Table of Contents 1. Executive Summary ………………………………………………………………………………………………………
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allocation system we are using right now, it is clear that there is an unfair distribution of product costs from this new project that is discouraging the company’s cost of Paper Hats to competitors and customers. By examining three different cost systems however, Paper Products Factory will be able to distribute costs more efficiently between departments and will be able to sell each paper product at a reasonable selling price against competitors. Unit Costing The current cost system Paper Product
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sales. The costing system that Wilkerson currently use is full costing system, which is not sufficient enough to support management decisions. ABC could reflect the realities of production more accurately, therefore the ABC costing system is suggested. 1. The differences between the full cost system and the ABC The major differences relate to the two-stage allocation process. * In the first stage, traditional systems allocate indirect costs to cost centers , ABC to activities. * In
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