User Account

All Pages

Calculate the activity-based costs and profits

Assignment Help Managerial Accounting
Reference no: EM132431335

Company XYZ has two fixed price contracts for two different claims. The company has enough capacity for both contracts but is uncertain whether they will be profitable.

Data as follows:

Customer AAA BBB

Component Type A999 B999

Contract Value ($) $27,000 $100,000

Material cost/unit 1,000 units 2,000 units

Material cost/unit $15 $20

Molding time/batch 5 hours 7.5 hours

Batch size 100 units 50 units

Annual Budgeted overheads as follows:

Activity Cost driver Cost driver volume/year Cost Pool

Molding Molding hours 2,000 $150,000

Inspection Batches 150 $75,000

Production Mgmt Contracts 20 $125,000

Calculate the activity-based costs and profits for each contract.

Reference no: EM132431335

Questions Cloud

Characteristics of exemplary business communication : Identify and apply effective communication methods within a business and academic environment and Evaluate the use and importance of technology
How does ethiopian airlines revised payment schedule : How does Ethiopian Airlines revised payment schedule affect your answers to (a) and (b) in requirement 1?
Analysis of records shows that debtors settle : The opening cash balance on 1st Jan was expected to be £30,000. The sales budgeted were as follows
Differences between the financial ratios : What are the main differences between the financial ratios that are used to evaluate the performance of manufacturing vs. service companies?
Calculate the activity-based costs and profits : Calculate the activity-based costs and profits for each contract.
Exemplary business communication assessment : Exemplary Business Communication Homework Help and Assessment help - Identify and apply effective communication methods within business and academic environment
Determine the amount of overhead cost : Determine the amount of overhead cost that would be assigned to each product using activity-based costing.
Why the average cost of producing a commodity : Examine the factors which explain why the average cost of producing a commodity declines with an expansion in the scale of production
Find the avc and mc for the level : Find the AVC and MC for the level of output at which the AVC curve is minimum

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd