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    Cost Accounting: Systems Integrators Inc. Activities

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    Attached problem.

    Selected information about several activities for Systems Integrators, Inc. follows:
    Resources Used
    Resources Supplied Cost Driver Rate Cost Driver Volume
    Material $50,000 $ 5 10,000
    Energy 8,000 15 420
    Setups 3,500 50 60
    Purchasing 3,000 40 65
    Customer Service 3,200 50 60
    Long-term labor 12,000 50 210
    Administration 24,000 50 400

    a. Compute the unused capacity for each activity.
    b. Write a short report stating why managers should know the difference between resources used and resources supplies. Give examples of how managers could use the preceding information on resources used and resources supplied.

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    Solution Preview

    a. The used capacity is the difference between resource supplied and resource used
    Resource used = Cost driver rate X cost driver volume
    Resource Supplied Used Unused capacity
    Material $50,000 $50,000 ...

    Solution Summary

    The solution determines the cost accounting for Systems Integrators Inc. activities.