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    Product Costing

    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

    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. Machin

    Process Costing: Units Transferred Out and Ending Inventory

    Sosa Company has the following production data for March: units transferred out 40,000, and ending work in process 5,000 units that are 100% complete for materials and 40% complete for conversion costs. If unit materials cost is $8 and unit conversion cost is $15, determine the costs to be assigned to the units transferred out a

    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.

    Activity Based Costing - Pros and Cons

    Please, if you have answered these questions before, completely re-word. 1. What are the benefits of activity-based costing? 2. What are the limitations of activity-based costing?

    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

    Set-Up Company Costing System: analyze current system and recommend changes

    Set-Up Company produces blue things and gray things. Blue things are in much greater demand in the market and the firm sells 120,000 blue things a year. Set-Up Co. sells 6,000 gray things per year in small boutiques. Things have a short shelf life. They must be distributed, sold, and consumed within two months of manufacture. Bo

    Direct Material and Direct labour are variable costs

    (See attached file for full problem description) --- Direct Material and Direct labour are variable costs. Overheads are 40% variable and 60% fixed Orange Ltd intention was to produce and sell the followig quantities during the year ended 31 May 2005. Product Quantity (units) Platinum 2000

    Process Costing

    The ledger of Tombert Company has the following work in process account. Work in Process-Painting 1-May Balance 3,590 31-May Transferred Out ? 31-May Materials 6,060 31-May Labor 2,500 31-May Overhead 1,650 31-May Balance ? Production records show that there were 700 units in

    Process Costing

    During May, the number of equivalent full units of materials applied to units produced by Department Q totaled 50,000, computed as follows: beginning inventory, 7,000 equivalent full units; units started and completed in May, 35,000 equivalent full units; and ending inventory, 8,000 equivalent full units. 1. Refer to the inf

    Miami Valley Activity Based Costing

    Read and review the attached document. Problem: 1 - What overhead costs should be assigned to each branch on Activity Based Costing concepts? 2 - What is the contribution of each branch before subtracting the results obtained in questioned 1? 3 - What is the profitability of each branch office using Activity Based Costin

    Utilization Estimates

    See the attached file. The SLD Imaging Center is currently negotiating with an MCO to provide diagnostic imaging services to 225,000 covered lives. SLD has fixed costs of $750,000 and capacity for an additional 75,000 patient encounters per year. They have two types of services MRI and CT Scans. MRI's have a variable cost of $4

    Product costs using Activity Based Costing

    I need help with Activity Based Cost Accounting. I'm not sure where to start. Using Exhibits 2 & 3 attached - I need help calculating the product costs for valves, pumps, and flow controllers under an Activity Based Costing (ABC) approach.

    Sample Question: Activity Based Costing

    1. Mahogany Manufacturing produces two types of entry doors: deluxe and standard. The assignment basis for support costs has direct labor dollars. For 2001, Mahogany compiled the following data for the two products. Deluxe Standard Sales units 50,000 400,000 Sales price per unit $650.00 $475.00 Direct material and lab