Explore BrainMass

Explore BrainMass

    Product Costing

    BrainMass Solutions Available for Instant Download

    Implementing the target costing approach

    To implement target costing for a new product, companies often set up a cross-functional team with members from engineering, marketing, and costing accounting. Why is a cross-functional team desirable when implementing the target costing approach?

    Activity-based costing of customers

    Please see the attachment for the formatted question. 10-23. Activity-Based Costing of Customers Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant

    Standard Costing and Variance Analysis

    Camping for Fun, Inc., produces a variety of camping products on a year-round basis. The best-selling item is a compact portable camping stove made from sheets of rust-free aluminum. Production of this stove requires two main operations: cutting/assembly and coating. The basic direct materials use are aluminum sheeting, a polyur

    Stainmaster's Carpet Cleaning - Activity Based Costing System

    see attachment Stainmaster's Carpet Cleaning is located in Orlando, Florida. It specializes in cleaning carpets for apartment complexes throughout the Orlando metro area. It usually charges a flat fee of $28.00 per hundred square feet of carpet cleaned. The company's accountant has suggested that the company may actually

    Activity Based Costing and Overhead Costs

    The controller for Tulsa Photographic Supply Company has established the following activity cost pools and cost drivers. Activity Cost Pool Budgeted Overhead Cost Cost Driver Budgeted Level for Cost Driver Pool Rate Machine setups $ 250,000 Number of setups 125 $ 2,000 per setup Material handling 75,000

    Activity Based Costing for DuoMed and Hammerslay Industries

    See attached file for proper format. Calculate total manufacturing costs using activity-based costing approach and cost per unit. 1. DuoMed, Inc., manufactures and sells diagnostic equipment used in the medical profession. Its job costing system was designed using an activity-based costing approach. Direct materials and d

    Activity Based Costing Example Problems

    1. Blue Ridge Ski Resort produces a variety of snow skis. Snow skis are produced in large batches and 10 batches are produced per year. The company's controller has recently implemented an activity-based costing (ABC) system. The following information is also available: Average selling price per pair of skis $300 per pair

    Activity Based Costing

    After reviewing the new activity-based costing system that Janis McGee has implemented at Joplin Industries' Port Arthur manufacturing facility, Kris Kristoff, the production supervisor, believes that he can reduce production costs by reducing the time spent on machine setups. He has spent the last month working with employees i

    Costing Processes

    SAC has developed revolutionary manufacturing techniques utilizing its new spark plug manufacturing technology to offer special-order spark plugs for the auto racing industry. The company is currently using process costing for its spark plugs but is considering using job order costing for the new specialty spark plugs. How does

    Activity Based Costing for RAD Radiology Center

    RAD Radiology Center performs X-Rays, Ultrasounds, CT Scans, and MRI,s. They can track the direct labor and materials for each procedure fairly easily but they are having difficulties allocating the costs associated with the administration, maintenance, sanitation, and utilities. They currently divide the overhead evenlt between

    Target Costing in Japan

    Target Costing in Japan Japan is always a good place for useful insight on innovation management accounting practice and technique. From early on, the Japanese recognized that the most efficient way to keep costs down was to design them out of their products, not to reduce them after the products entered production. This real

    Product Costing: Case Study Farm Financial Standards Case Study

    Farm Financial Standards Council Model Case If the Farm Council Case did not use Activity Based Costing, identify several dysfunctional decisions that could be made using traditional cost allocation. Which solution do you prefer, the initial or alternative solution proposed in the case? Explain the difference between

    Budgeting, Performance Planning, and Standard Costing

    Problem 20-5A Preparation of a complete master budget Near the end of 2011, the management of Simid Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2011. To prepare a master budget for January, February, and March of 2012, management gathers the following information. a

    Med Max - activity based costing

    Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Med Max sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Med Max that had cost Med Max $100 to buy fro

    Analysis of data to drop a product line for Hayley and Associates.

    Hayley and Associates is a public accounting firm that offers three types of services-audit, tax and consulting. The firm is concerned about the profitability of its consulting business and is considering dropping that line. If the consulting business is dropped, more tax work would be done. If consulting is dropped, all consult

    Activity Based Costing

    Discuss and illustrate the process of activity-based costing (ABC). Do you view ABC as an improvement over traditional methods? Explain.

    Wiseman Ltd: advance costing

    Wiseman Ltd, divides its customers into Gold Customers and Silver customers. The Company has one full-time customers representative per 1000 Gold customers and one full-time customer representative per 10,000 silver customers.Customer representatives receive salaries plus bonuses of 10 % of customer gross margin.

    McDonald's Corporation: Activity Based Costing

    What is a service/product in McDonald's that can use activity based costing? What are 3 activities for activity based costing and the correct cost drivers for them? Provide an estimate for the application rates of these drivers. Include the nature/name of McDonald's, which activity, time period, and inputs were used, and your

    Activity Based Costing The New Millennium Linen Company

    Activity Based Costing The New Millennium (Millenium) Linen Company is a small family company that produces and sells towels. Millennium sells the towels to three types of stores: department stores, mid-sized specialty stores and small gift shops. The company is doing well and the CEO wants to expand the business. The contr

    Costing: Work Progress at Concordia Corp.

    See the attached file. 1) Concordia Corp shows the following information concerning the work in process at its plant: Beginning inventory was partially complete (materials are 100% complete:conversion costs are 60% complete) Started this month 180,000 units Transferred out,150,000 units En

    Activity Based Costing

    P4-5A (a-c) Hy and Lowe is a public firm that offers two primary services, auditing and tax return preparation. A controversy has developed between the partners of the two service lines as to who is contributing the greater amount to the bottom line. The area of contention is the assignment of overhead. The tax partners argu

    Product Costing/ T-Accounts

    Please see the attached problem. Conundrum Corporation manufacturers furniture. Due to a fire.... Problem 3-57 Flow of Manufacturing Costs; Incomplete data #4 should be $114,000

    Product Costing for Overhead Rates

    Please see the attached problem. Problem 3-58 Plantwide versus Departmental Overhead Rates; Product pricing (Appendix) 2. Advanced system price $1,804 Basic system price $1,243 ColourTech Corporation manufactures two different colour printers for the ....see attached.

    Activity based costing -Business Analysis for Gourmet Specialty Coffee Company

    See attached file. Budgeted sales ............................................................................... 2,000 lb. 100,000 lb. Batch size ...................................................................................... 500 lb. 20,000 lb. Setups .................................................................

    Valid Decisions in a Production Factory

    "full costing as an approach where organizations goods and services are priced in other to reflect the true cost which is expected to include social and environmental cost". Question: How can a production factory make valid decisions given the differences in costing? After all, we must have accurate cost data in order to

    standard costing system

    Reed company uses a standard costing system. manufacturing overhead is applied to products based upon machine hours (MH). Use the following information to make the required calculations: standard mh allowed 3 mh/unit standard variable overhead rate $5/mh actual

    Process Costing Problem

    Problem AP3-4 Production Cost Report Aussie Yarn Company MT 425 Problem AP3-8 Marian Chemicals Production Cost Report; Missing Pieces Beginning WIP Ending WIP direct material direct labor manufacturing overhead equivalent units of productions See details attached.

    Segment analysis; full costing

    See attached for better format: 1) Computer Boutique sells computer equipment and home office furniture. Currently, the furniture product line takes up approximately 50% of the company's retail floor space. The president of Computer Boutique is trying to decide whether the company should continue offering furniture or just c