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Question -
a) Podrive Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a computer hard drive is $41. Podrive would like a profit of $11 per drive. Calculate target cost.
b) Gruner Corporation produces snowboards. The following cost information per unit is available: direct materials $13; direct labour $8; variable manufacturing overhead $5; fixed manufacturing overhead $14; variable selling and administrative expenses $2; and fixed selling and administrative expenses $13. Using a 25% markup percentage on the total cost per unit, calculate the target selling price.
c) Schuman Corporation produces microwave units. The following per-unit cost information is available: direct materials $38; direct labour $26; variable manufacturing overhead $19; fixed manufacturing overhead $42; variable selling and administrative expenses $12; and fixed selling and administrative expenses $29. Its desired ROI per unit is $29.88. Calculate its markup percentage using a total cost approach.
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 for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
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
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
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.
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