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The company is well known for its quality product's each item is thoroughly tested before it leaves the plant. Workers are highly skilled. The company considers direct labor to be a fixed cost because it does not reduce the workforce when there is a small downturn in business, and it can accommodate production increases of up to 10 percent due to excess capacity.In the production process, workers in the circuit department prepare circuit boards that are sent to the case department for installation in custom cases. In the past six months, the workers in the circuit department have pursued a number of process improvement initiatives that have resulted in much shorter production times. For example, the Model LE7 amplifier used to require 10.5 standard labor hours in the circuit department, but the standard was revised last month to only 8.4 standard hours.Required:
Assume that the company is reluctant to fire workers in the circuit department even if they are not really needed. (After all, they have just worked hard to improve productivity.) Given the production improvements and the institution of new standards, explain why the circuit department has an incentive to overproduce (i.e., produce more output than can be handled by the case department).
The following is taken from Antuan Co.'s internal records of its factory with two operating departments.
Describe how a 3 percent decline in sales at Home Depot could cause the 21 percent decline in profits. What accounting concept was involved, how were the many major types of costs incurred by Home Depot likely affected by decline in its sales
Write a short essay on how management accounting can help the managers of an organization to run their business efficiently and prepare a report for Johnson explaining the errorshe made in his income statement
research question consists of a case study you are a accountant working for white and associates a public accounting
Data 2 Go manufactures and sells lash drives.
in this case a full set of budgets will be prepared and presented in appropriate format.nbsp reports will be prepared
Calculate a plantwide rate for Lacy Company based on machine hours. What is the bid price of each job using this rate? Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates?
Search the Web using the term variable costing.
After a study of its processes, a firm determines it has the following 4 overhead cost pools related to the production of its 2 products: Set-up, Shipping, Product design, and Plant utilities and administration.
The following data apply to the provision of psychological testing services.
Pacific Ink had beginning work in process inventory of $744,960 on October 1. Of this amount, $304,920 was the cost of direct materials and $440,040 was the cost of conversion.
If Bent & Dent had used the perpetual inventory system, how would it have determined the amount of the inventory loss?
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