Products L M N Sales price per kg. 5 10 20 Post-separation point costs 10,000 5,000 15,000 Output in kg 2,500 1,000 1,500 Pre-separation point costs amounted to Rs.20,000 The joint products are manufactured in one common process, after which they are separated and may undergo further individual processing, the pre-separation point costs are apportioned to joint products according to weight. You are required to prepare a statement showing the estimated
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analysed the information of exhibit 1, 2, 3 and 4. Alternatives * Reduce the manufacturing costs * Produce the Romaine Doll * ABC-method for the Geoffrey Doll * Do nothing Criteria * Costs * Profit * Implementation time Asses the alternatives Alternatives | Decision Criteria | | | | | | Qualitative | | Quantitative | | | | Implementation time | | Costs | Margin | | 1. | | | | | | 2. | | | | | | 3. | | | | | | Select the best
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Introduction: Areas of land must be leveled and prepared before construction can begin on them. Quality soils can sometimes result in strong foundations. Engineers need to prepare the cost estimate that the soil excavation would entail. The image below shows what land area will be used in this lab. Experimental procedures: 1. Set up the automatic level somewhere where you can see the benchmark and the grid points. 2. Take a backsight of the benchmark. 3. Use the equation below
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207733 SABIRAH BT ABDULLAH 207783 NAJIHA BT MOHD MISBAHHUDDIN 207785 NUR AMALINA BT ABD GHANI 207791 SUBMISSION DATE : 06 OCTOBER 2013 Table of Contents 1.0 INTRODUCTION 4 2.0 MAIN ISSUE 5 3.0 FINDINGS 7 4.0 STANDARD COST 12 5.0 RECOMMENDATION 13 6.0 CONCLUSION 15 1.0 INTRODUCTION Tan Min Yi who was the general manager of Luotang Power, a coal-fired power plant located in central China. He should make a presentation to the Board of Directors of his parent
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direct regards to the inadequacies of the existing cost allocation system and investigation of using an Activity Based Costing (ABC) method. Dakota Office Products utilizes a traditional cost allocation system. Direct and indirect costs associated with operations are allocated to sold goods. DOP offers a comprehensive product line in office supplies. Traditional cost systems used in such product diversity can cause cost distortions (Martin). Costs were allocated using the activity based costing method
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the entire year. Carrying cost is $1 per wheel a year. Set up cost for a production run of wheels is $45. The firm operates 240 days per year. Determine the following: 1. Optimal run size -2400 2. Minimum total annual cost for carrying and set-up ….$1,800 3. Cycle time for the optimal run size……12days 4. Run time…….3days 2. The maintenance department of a large hospital uses about 816 cases of liquid cleanser annually. Ordering costs are $12, carrying costs are $4 per case a year,
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applications of standard costing, there are substantially more situations where it is not a viable costing system. Here are some problem areas: ▪ Cost-plus contracts. If you have a contract with a customer under which the customer pays you for your costs incurred, plus a profit (known as a cost-plus contract), then you must use actual costs, as per the terms of the contract. Standard costing is not allowed. ▪ Drives inappropriate activities. A number of the variances reported under a standard
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to calculate insourcing and outsourcing costs on a per-unit basis. One objective of this case is to familiarize participants with the idea of total cost, and to become accustomed to allocating costs on a per unit basis. Total cost per unit cost allocation allows valid comparisons between insourcing and outsourcing options. INSOURCING COSTS Direct Materials Costs When calculating direct material costs, the key numbers involve last year's production, the cost per 50 lb. block, and the average semi-finished
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incorrect cost allocation. You are currently using the strategy of “peanut butter” costing to assign costs to your current product line. Peanut butter costing is when you take the total costs of your products, in this case overhead, and spread them across your entire product line evenly. When you use this strategy, you can end up over allocating costs to some products and under allocating costs to others. By implementing a more effective costing strategy, you can accurately assign costs to each
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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 cost specialty motors. Mr. Karl-Heinz Lottes—Director of Business Operations, EMW SIEMENS
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