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Baja Industries has recently switched its method of applying manufacturing overhead from a single predetermined overhead rate based on direct labor hours to activity-based costing (ABC). Assume that the direct labor rate is $18.00 per hour and that there were no beginning inventories. The following cost drivers and rates have been developed for allocating manufacturing overhead costs: Activity Cost Driver Rate Material handling Number of parts used $2.00 per part Assembly and inspection Number of direct labor hours $25.00 per DLH Testing Number of units tested $5.00 per unit The following production, costs, and activities occurred during the month of August: Direct Number of Units Produced Material Cost Parts Used Direct Labor Hours 6,400 $208,600 142,000 26,480 (a.) Calculate the total manufacturing cost and the cost per unit for the month of August. (b.) Assume instead that Baja Industries applies manufacturing overhead on the basis of $40.00 per direct labor hours (rather than the ABC method). Calculate the total manufacturing overhead cost applied for the month of August. (c.) Which method of applying overhead do you think provides better information for manufacturing managers?
the manzoni corporation manufactures and sells a single product. they are in the process of preparing next quarters
Classify the following items as investment by owner (I), owner's drawings (D), revenues (R), or expenses (E).Then indicate whether each item increases or decreases owner's equity.
1.a management that wanted to increase the financial leverage of its firm wouldnbsp1.nbspnbspnbspnbspnbspnbspnbsp raise
Calculating Profitability Ratios Music Row, Inc. has sales of $32 million, total assets of $43 million, and total debt of $9 million. If the profit margin is 7 percent, what is net income? What is ROA? What is ROE?
What about the price of oranges? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of oranges in 2030 $
problem 1the frackle department is the first of a two-stage production method. spoilage is identified when the units
Purpose the journal entry for Blaha to record the impairment of its goodwill at the end of 2013.
What is the cost of direct materials used during the year and what is the cost of goods manufacturing for the year and what is the cost of goods sold for the year
franklin s tower company completes these transactions during april of the current year the terms of all its credit
how can u adjust the net present value analysis to compensate for the inclusion of the interest expense and should Baltic buy the new machine
shown below are a few events and transactions of kash company.2011 jan. 2 purchased 80000 shares of bushtex co. general
Draft a memo to a client comparing the advantages and disadvantages of using forward contracts and options to hedge foreign exchange risk.
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