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Product Costing

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.

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.

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

Ebay Activity Based Costing

Identify a product or service in the e-bay organization that could use Activity Based Costing. Then identify at least two activities for Activity Based Costing and the appropriate cost drivers for those activities. Estimate the application rates for each cost driver. If you cannot identify specific actual amounts, make a reas

Activity Based Costing vs. Traditonal Costing

B Town Motors produces boat motors and is considering a shift to activity-based costing. Its controller is interested in using a recent order for 200 motors sold to Martin Sports to compare traditional costing wtih activity-based costing. The costs for this order consist of direct materials fo $60,000, purchased parts for $80

Cost Flow in a Process Costing Environment

Cost Flow in a Process Costing Environment 1) Juman Company makes magnets all of the same size and shape. The materials and costs flow through 2 departments: Mixing and Forming. In the Mixing Department, the metal is melted in huge vats. The fully mixed metal is then siphoned off to the Forming Department, where the

Product Costing Systems: Overhead Cost, Rate, & Allocation

Weld Canning company has a busy season lasting six months from September through February and a slack season lasting from March through August. Typical data for these seasons are as follows: Average monthly direct labors in a busy season = 15,000, in slack season = 5,000. Average monthly factory overhead costs = $180,000 in bu

Process Costing System

Weighted-Average Method Larsen Company manufactures car seats in its San Antonio plant. Each car seat passes through the Assembly Department and the Testing Department. This problem focuses on the Aseembly Department. The process-costing system at Larsen Company has a single direct-cost-category (direct materials) and a si

Exercises 5-11 through 5-18:

Summit Manufacturing, Inc. produces snow shovels.The selling price per snow shovel is $30. Costs involved in production are: Direct material $ 5 Direct labor 4 Variable manufacturing overhead 3 Total variable manufacturing costs per unit $ 12 Fixed manufacturing overhead per year $180,000 In addition, the comp

Implementing the Activity Based Costing (ABC) System

See the attached file. Jarme Company makes two products and is implementing an Activity Based Costing (ABC) system. Previously, all overhead had been applied on the basis of machine hours. The Company produces 100,000 units of product D and 5,000 units of product F. Cost Pool Driver and Level Cost in Pool Use of Driver by Pr