Share
Explore BrainMass

Tarquin's Trophies: Calculating Accounting Costs

See attached file.

Tarquin's Trophies makes trophies, plaques, and medallions and operates at capacity. Tarquin does large custom orders, for example the participant trophies for the Mishawaka Little League. The Controller has asked you to compare plantwide, department, and activity-based cost allocation.

1. Calculate the cost per unit of Trophies, Plaques and Medallions based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs.

2. Calculate the cost per unit of Trophies, Plaques and Medallions based on departmental overhead rates, where forming department overhead costs are allocated based on direct labor costs of the forming department, assembly department overhead costs are allocated based on total direct costs of the assembly department and packaging department overhead costs are allocated based on direct materials costs of the packaging department.

3. Calculate the cost per unit of Trophies, Plaques and Medallions if Tarquin allocates overhead costs in each department using activity-based costing.

4. Explain how the disaggregation of information could improve or reduce decision quality.

Attachments

Solution Summary

This solution assists with the accounting problems for Tarquin's Trophies.

$2.19