III. Two Stage Cost System Analysis The two stage method is always used in Activity-Based Costing, which assigns resource costs to cost objects base on separate activities. In stage one, the total overhead costs are allocated to the separate activities base on different resource drivers. In stage two, the costs of activities are allocated to each cost object base on cost drivers. In this case, because the wages and depreciation costs can be traced directly to each workstation, we only need to
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Seyhun Shikhaliyev CASE STUDY COLORSCOPE 1. Why would any customer, let alone large advertising agencies and departmental stores, go to Colorscope rather than go to the large printers listed in Exhibit 3? The main line from the colorscope inc background are the corporate was found in march 1976, the first target customers is local customers (small agencies), and after that colorscope growth significantly that thing can be proved in 1988 sales colorscope over than USD 5 Milion and they
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Bronson Shrimp Farms 1. Budgeted cost per package – Original costing system Using the original costing system that used total direct labor hours as the indirect cost allocation base, the total projected indirect costs will be allocated by first determining the allocation rate. Since we will be producing 10,000 packages of headless shrimps at 0.01 labor hours per package, the total number of hours worked would be 10,000 x 0.01 = 100 hours. Similarly, for the 50,000 packages of peeled and deveined
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Learning Team C Week 3 Case Study BYP 4-2 ACC349 April 4, 2011 Learning Team C Week 3 Case Study BYP 4-2 [pic] [pic] (a) |Activity cost pool |Estimated overhead |Cost drivers per activity |Total cost driver activity |Activity-based overhead rate | |Market analysis |$1,050,000 |Hours of analysis |15,000 hrs |$1,050,000 =$70 | | | |
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------------------------------------------------- Strategic management accounting ------------------------------------------------- Word count: 3291/3000 * Table of content I. Introduction 4 II. Three systems to measure product costs 4 1. Variable costing: 4 2. Absorption costing: 5 3. Activity-based costing approach 7 III. Standard costing 9 1. Use of iterative operations for standard costing 9 2. Defining the standards 9 3. Purposes and advantages of standard
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The main costs associated with the production of VectorCal’s drone navigation system are the labor cost and material cost. VectorCal’s drone navigation system has two types of labor cost, direct labor and indirect labor. Direct labor cost is wages that are incurred in order to produce specific goods or provide specific services to customers. It also includes the payroll taxes associated with those wages, plus the cost of company paid medical insurance, life insurance, workers' compensation insurance
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Classic Pen Company : Developing an ABC Model Exhibit 1: Traditional Income Statement | Blue | Black | Red | Purple | Total | Sales | $75,000 | $60,000 | $13,950 | $1,650 | $150,600 | Material Costs | 25,000 | 20,000 | 4,680 | 550 | 50,230 | Direct Labor | 10,000 | 80,000 | 1,800 | 200 | 92,000 | Overhead @300% | 30,000 | 24
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Activity-based costing, or ABC, is a method of assigning costs to products or services based on the resources that they consume. this is a more logical manner than the traditional approach of simply allocating costs on the basis of machine hours. Activity based costing first assigns costs to the activities that are the real cause of the overhead. It then assigns the cost of those activities only to the products that are actually demanding the activities. Activity-based costing became popular in
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competitive environment and high costs. Its largest group, Electric Motor Works (EMW) has been focusing on producing standard as well as customized motors and found out that Siemens has great profitability in producing low volume customized A/C motors. To successful implement this new strategy, not only has EMW renovated the shop floors for process improvement, but also redesigned the components of motors. However, as the strategy implementing, the traditional cost system seemed to be inappropriate
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the following question(s). | | |Wood Manufacturing is a small textile manufacturer using machine-hours as the single, plant-wide predetermined cost driver rate to | | |allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the | | |coming year for the company and for the Winfield High School band jacket job:
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