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Product Costing

activity-based costing - Molly company

Molly company manufactures both standard and customized electrical control boards for automated manufacturing machinery. The company recently completed installation of a robotic assembly unit. This automated unit completely eliminates direct labor in the production of several types of standard electrical control boards. M

Activity-Based Costing and Management

Mattresses-A-Million produces Pillow-Top mattresses. They have been using a volume-based costing system to allocate overhead based on direct labor-hours. The Pillow-Top requires two hours of direct labor. The company has been allocating overhead at the rate of $10 per direct labor-hour. The accounting manager thinks they sho

Activity Based Costing (how can it benefit companies?)

I need a 3 to 4 page paper describing how Activity Based Costing can benefit companies. You may wish to give an example of a company where activity based costing could be applied. Describe in detail how this company could benefit from Activity based costing.

Tough Thermos, Inc.

4. Tough Thermos, Inc. manufactures two plastic thermos containers. The large container is called the Ice House. The smaller container is called the Cool Chest. The Ice House sells for $35 and the Cool Chest sells for $24. The production costs computed per unit under traditional costing for each model in 2008 were as follows. T

Spirit Cola Corp. produces a new soft drink brand.

See attachment jobs need help with what is left blank Spirit Cola Corp. produces a new soft drink brand. Sweet spring , using two production departments, mixing and bottling. Spirits beginning balances and data pertinent to the mixing departments activities for 2020 follow: Accounts

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

Using Traditional Methods and Activity Based Costing

The Company to be used is General Motors. Time period 2007-2008. Pick a service or product from General Motors that can use Activity Based Costing. What 2 activities can be used for ABC and what are the appropriate cost drivers for them? The application rates for each should be estimated. Include: - Name/Nature of the

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

A Discussion on Product Costing

Some firms have a lot of fixed costs and a few variable costs, while other firms are configured the other way around. What effect do you think the existence of a high proportion of fixed costs has on the desirability of using ABC methods?

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