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Product Costing

Differential Analysis and Product: cost concepts

Please see attach document. 1. A cost that will not be affected by later decisions is termed a(n) ________. historical cost differential cost sunk cost replacement cost 2. Jones Co. can further process Product B to produce Product C. Product B is currently selling for $30 per poun

Mad Dogs's Direct and Indirect Costs

Product Costing Review Mad Dog Enterprises manufactures computer game control devices such as joysticks and steering wheels. Following is a list of the costs incurred by Mad Dog in 2009: Wages paid to assembly workers . . . . $100,000 Cost of plastic used in making devices . . . 25,000

Activity Based Costing - cost drivers

Because activity-based costing creates cost drivers for detailed-level indirect cost, CVP analysis using activity-based costs will tend to shift cost from fixed to variable classifications, resulting in?: Lower breakeven sales. Higher breakeven sales. No change in breakeven sales. A higher contribution m

Setup costs

A Co. makes tow types of bars for bicycles. It requires 1 hour of labor to make one bar of either type. During the most recent accounting period, the Co made 8,000 steel bars and 2,000 titanium bars. Set up costs amounted to $48,000 for the 24 batches (i.e., 12 of each type) of bars produced during the period. If activity-base

Summary Problem: All Variances - Funtime, Inc.

Problem: Funtime, Inc., manufactures video game machines. Market saturation and technological innovations caused pricing pressures that resulted in declining profits. To stem the slide in profits until new products can be introduced, top management turned its attention to both manufacturing economics and increased production.

Activity-based costing systems

Need additional advantages and disadvantages and good reasonings why activity-based costing system should be used, and answers for below scenario. Consider the following scenario: Two accountants are having a discussion about whether or not their company should use an activity-based costing system. create a list of 5 advantag

Steinway and Sons - Activity Based Costing

I need assistance with the attached assignment. Thanks in advance for your time and assistance! Visit the site below in item 1 and take the factory tour. Then do items 2 and 3 below: 1. Factory Tour of Steinway Pianos ( (This is an excellent case that goes right to the heart of t

Traditional and Activity-Based Costing

P4-3A Stellar Stairs Co. of Poway designs and builds factory-made premium wooden stairs for homes. The manufactured stair components (spindles, risers, hangers, hand rails) permit installation of stairs of varying lengths and widths. All are of white oak wood. Its budgeted manufacturing overhead costs for the year 2006 are as fo

Traditional costing systems

1. Consider the following statements regarding traditional costing systems: Indicate which are correct. I. Overhead costs are applied to products on the basis of volume-related measures. II. All manufacturing costs are easily traceable to the goods produced. III. Traditional costing systems tend to distort unit manufacturi

Traditional Costing Systems

Many traditional costing systems: A. trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates B. write off manufacturing overhead as an expense of the current period C. combine widely varying elements of overhead into a single cost pool. D. use a host of dif

Process Costing System

Browning, which uses a process-costing system, adds all material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The information that follows relates to the period just ended: Units started and completed: 60,000 Units in ending work-in-process inventory: 20,000, 80% complete Whi

Calculating and Interpreting Activity-Based Costing Data

CALCULATING AND INTERPRETING ACTIVITY-BASED COSTING DATA Hiram's Lakeside is a popular restaurant located on Lake Washington in Seattle, The owner of r restaurant has been trying to better understand costs at the restaurant and has hired a student inter to conduct an activity-based costing study. The intern, in consultatio

Standard Costing - Poochy Pride Corporation

Poochy Pride Corporation produces dog food. The company's standard cost and annual budget information are as follows: Standard Costs per Case Direct material (20 pounds at $2) $ 40.00 Direct labor (5 hours at $18) 90.00 Variable overhead (5 hours at $1.50) 7.50 Fixed overhead (

Activity-Based Costing vs. Traditional

Mission Bearings Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, "Deluxe" and "Ultra", about which it has provided the following data:

Mix-a-Lot Non-technical Note

Mix-a-lot Co. is a division of a Mixer Corporation, large diversified chemical company provides mixing services for both outside customers and other divisions. Mix-a-lot buys or receives liquid chemicals and combines and packages them according to the customer's specifications. Mix-a-lot computes its divisional net income on bot

Traditional and Activity-Based Costing Methodology

a) Predetermined... $830,000 ÷ 100,000 hrs. = $8.30 per machine hour (b) Manufacturing cost per stair under traditional costing: Direct materials $103,600 Direct labor  112,000 Overhead (14,500 X $8.30)  120,350 Total cost of 280 stairs $335,950 Cost per stair ($335,950 ÷ 280)  $1,199.82 (

Activity Based Costing Allocation Rates

6- ABC (activity-based costing) uses activity allocation rates in product costing. How are activity cost drivers used in ABM (activity-based management)? 7 - Difference between Unit-Based Costing and Activity-Based Costing Which one of the following statements best summarizes the difference between unit-based costing (

Cabalo Company product costing

Cabalo Company manufactures two products, Product C and Product D. The company estimated it would incur $130,890 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor hours. Data concerning the current period's operations appear below: Product

Activity Based Costing vs Traditional Cost Allocation

Need assistance with the attached case on cost allocations methods. See attached file for full problem description. C5-1 Activity-Based Costing versus Traditional Cost Allocation C. Berry Manufacturing Company produces two guitar models. One is a standard acoustic guitar that sells for $600 and is constructed from medium-g

Alternative Forms of Costing

Compare and contrast the alternative forms of costing: - Activity based costing (ABC) - Traditional Product Costing - Variable Costing - Absorption Costing

Identify three key learning points

Identify three key learning points with respect to the application of concepts like fixed costs, variable costs, contribution margin, breakeven analysis, indifference point, and operating leverage to an organization's overall financial performance.

Financial Reporting: Activity-Based Costing

1. Match the descriptions below with the appropriate phrase or term: Answers may be used more than once. 1.) Bar-Coding system B 2.) Value-Added Activity _____ 3.) Activity-Based Management _____ 4.) Activity-Based Costing _____ 5.) Non-value-added Activity FC 6.) Pilot project E (a.) Shipping units to final cu

Computer Activity Rates

Blank Corporation is a diversified manufacturer of consumer goods. The company's activity based costing system has the following seven activity cost pools: Estimated Expected Activity Cost Pool Overhead C

Standard costing

10-48 Valport Valve Company manufactured 15,600 units during March of a control valve used by milk processors in its Shreveport plant. Records indicate the following: Direct labor 80,200 hr. at $10.95 Direct material purchased 50,000 lb. at $5.20 Direct material used 46,200 lb. The control valve has the following st

Tender Bird Poultry, Inc. Product Costing

The controller for Tender Bird Poultry, Inc. estimates that the company's fixed overhead is $150,000 per year. She also has determined that the variable overhead is approximately $.15 per chicken raised and sold. Since the firm has a single product, overhead is applied on the basis of output u nits, chickens, raised and sold.

Key Concepts of Activity-Based Costing

2. What has happened in recent industrial history to reduce the usefulness of direct labor as the primary basis for allocating overhead to products? 3. In an automated manufacturing environment, what basis of overhead allocation is frequently more relevant than direct labor hours? 4. What is generally true about overhea

Simple introductory example of Activity-Based Costing

This example is one that I have used in the past to introduce Activity-Based costing to my students. Because there are not a lot of new terminology and complex numbers involved, it may be helpful in learning the concepts involved in ABC costing. CHICAGO GRILL Chicago Grill is a new restaurant. In the past, Chicago Grill