Reference no: EM132894824

The purpose of this assignment is to assess your understanding of:
- how managerial accounting adds value to an organization -
- the impact of managerial accounting changes and trends on business value
- how to allocate costs using a job-order costing system

Assignment 1

Managerial accounting practices, please provide:

1. a definition
2. an example
3. an explanation of how it adds business value when applied well
4. Your source in the form of a list of URLs at the end of your answer (MANDATORY)

IMPORTANT: You are expected to research your answers on the internet and in your textbook. You must cite your sources by providing the chapter and page number from your textbook and the URLs from the internet.

Failure to cite your sources will result in a zero on the assignment. (Plagiarism is illegal.)
- Value Chain
- Computer-integrated Manufacturing (CIM)
- Enterprise Resource Planning (ERP) Software Systems
- Just-in-Time Inventory Methods
- Total Quality Management
- Activity-Based Costing
- Lean Manufacturing
- Balanced Scorecard

Write your 2 responses in the space provided below.

Part 3

Slower Company uses a job-order cost system in each of its two manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labour cost in Department A and machine hours in Department B.

In establishing the predetermined overhead rates for 2020, the following estimates were made for the year:
Department
A B
Manufacturing overhead ........................................ $1,056,000 $840,000
Direct labour cost .................................................... 264,000 600,000
Direct labour hours ................................................. 12,000 40,000
Machine hours ........................................................ 75,000 84,000

During January, the job cost sheet showed the following costs and production data:
Jobs
14 15

Direct materials used .............................................. $34,000 $31,000
Direct labour cost .................................................... 24,000 25,500
Manufacturing overhead incurred .......................... 65,000 35,000
Direct labour hours ................................................. 2,000 1,700
Machine hours ........................................................ 5,000 4,000

Instructions

a) Calculate the predetermined overhead rate for each department.

b) Calculate the total manufacturing cost assigned to jobs 14 and 15 in January.

c) What is the purpose of job cost accounting?

Attachment:- Managerial Accounting.rar