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Product Costing

Activity-Based Costing Product Costs for Extenal Reports

Pyrad Corporation makes ultra-lightweight backpacking tents. Data concerning the company's two product lines appear below: Deluxe Standard Direct materials per unit.................................. $60.00 $45.00 Direct labor per unit.................................. $9.60 $7.20 Direct labor-ho

Activity Based Costing for Joseph Commercial Bank

City of Joseph Commercial Bank hired consultants to compute the costs of three products: checking accounts, personal loans, and the Gold visa card. The consultant identified the following activities, costs and activity drivers (annual data): Activity: Activity Cost: Activity Driver: Activity Capacity: ATM Servi

Target Costing in Competitive Marketplace

Maritime services corporation will soon enter a very competitive marketplace in which it will have limited influence over the price that are charged. Management and consultant are currently working to find-tune the company´s sole services which they hope will generate a 12 percent first-year return (profit) on the firms $27,000

Contrast Activity-Based Costing and Conventional Product Costs

World, Inc. manufactures two models of television sets, the N800 XL model and the N 500 model. Data regarding the two products follow: Direct Labor-hours per unit Annual Production Total Direct Labor-Hours Model N 800 XL 3 3,000 units 9,000 Model N 500 1 12,000 units 12,000 21,000 Additional information about the c

Activity-Based Costing System for Coffee

Gourmet Specialty Coffee Company (GSCC) is a distributor and processor of different blends of coffee. The company buys coffee beans from around the world and roasts, blends, and packages them for resale. GSCC currently has 12 different coffees that it offers to gourmet shops in one-pound bags. The major cost is raw materials; ho

Activity based costing

Topic: Customer profitability analysis; Activity based costing The following activity based costing information was the basis for the analysis Customer-Related Activity Cost Driver Base Cost Driver Rate Sales activity Sales visit...............................$2,0

Activity Based Costing & Allocation Rates

I would like to know, based on the additional background information below: A. The allocation rates for each activity in the R&D Department. B. How much cost would be charged during the year to a manufacturing department that had consumed 2,000 hours of market research time, received aid in developing 25 new products, and requ

Process Costing and Allocation

Process costing: determining equivalent units In March 2006, Martinez Corporation's battery plant had 1,500 units in its beginning work in process inventory. During March, the company added 18,000 units to production. At the end of the month, 6,000 units of product were in process. (each requirement is independent of the

According to the article, when should target costing be used? What are the benefits of using target costing at that stage? Do you think this approach will work in all situations? Why or why not?

Go to the website of DRM Associates at http://www.npd-solutions.com/target.html. Read the article on target costing. According to the article, when should target costing be used? What are the benefits of using target costing at that stage? Do you think this approach will work in all situations? Why or why not? Please answ

E Electronics Co Profitablity analysis

Cost distortions At its manufacturing plant in Duluth, Minnesota, E Electronics Co. manufactures two products, X21 and Y37. For many years, the company has used a simple plantwide manufacturing support cost rate based on direct labor hours. A new plant accountant suggested that the company may be able to assign support costs

Budgeting and Behavioral Implications

A) Calculate the cost per unit for the variable cost. B) Why do you think budget A has high costs and low sales forecasts? C) Why do you think budget B has low costs and high sales forecasts? D) How should the two groups participate to come to a consensus on the budget? What are the advantages of this approach? Ple

Activity Based Costing Real-Life Examples

Define and explain activity based costing. Also use some real-life examples of how companies implement this management tool. Offer some comparisons and contrasts and pros and cons from different view points on this topic.

Activity based costing (calculating customer margin)

The Thornes Cleaning Brigade Company provides housecleaning services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Activity Cost Pool Total Cost Total Activity Cleaning

Normal Costing vs. Actual Costing Systems and One Pool vs. Multi-Pool Allocation

Case Hammond and Jarrett provide tax consulting for estates and trusts. Their job-costing system has a single direct-cost category (professional labor) and a single indirect-cost pool (research support). The indirect-cost pool contains all the costs except direct personnel costs. All budgeted indirect costs are allocated to ind

Activity based vs. traditional costing

ABC currently uses traditional costing procedures, applying $410,000 of overhead to products X and Y on the basis of direct labor hours. The firm is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH), production setups (SU), and number of parts component

Fowler Industries Machine Hours: how many units of C15 and C19

* The following information relates to the following three questions. Fowler Industries produces two components, C15 and C19 for their own use. Data regarding these two follow. C15 C19 Machine hours required per unit 20 hrs 25 hrs Standard cost per unit: Direct material $250 $350

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

Activity-based costing system

Give five disadvantages to using an activity-based costing system: 1. The company may be making single or few products, 2. The company may have low overhead costs as compared to direct labor, 3. The company may only have simple data available, 4. The company may have less non-product costs, and finally 5. The system may b

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

Transferred-in costs of process

In a production cost report using process costing, transferred-in costs are similar to ? Materials costs added at the end of the process. Materials costs added at the beginning of the process. Conversion costs added during the process. Conversion costs transferred to the next process. Conversion c

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

Product Cost Hierarchy

For the following list of costs, indicate by the appropriate letter which category of activities each cost applies to: unit level (U), batch level (B), product line (P), or facility support (F): a. Machine fine-tuning adjustment cost (required after the production of each unit) b. Salary of vice president of finance c. Mach

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 (http://www.steinway.com/factory/tour.shtml) (This is an excellent case that goes right to the heart of t