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Question: Energy Inc. is working on its direct labor budget for next two months. Each unit of output needs 0.77 direct labor-hours. The direct labor rate is $11.20 per direct labor-hour. The production budget calls for producing 7,100 units in October and 6,900 units in November. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?
A master budget is the compilation of forecasts for coming year or operating cycle made of many departments or function in an organization. What is the most significant forecast made in the master budget? Mention the reasons for your answer.
Do the pension worksheet and create the journal entries needed to reflect the above activity.
Browning, which employs a process-costing system, adds all material at the beginning of production and incurs conversion cost evenly during manufacturing. The information which follows relates to the period just ended:
A company makes a product out of metal. They employ two pounds of metal that costs them $20 per pound. They pay their employees $25 an hour and it takes average of 1.3 hours for them to make the final product.
Mr. Carter is manager of Simmons Farm and Seed Company, a wholesaler of fertilizer, seed, and other farm supplies. The company has been successful in current years primarily because of great customer service, flexible credit terms, customized orde..
The job costing system of Johnsons custom shop has five activities which are employed as indirect cost pools
The president asks you to compare the alternatives on a total-annual-cost basis and on a per-unit basis for annual needs of 60,000 units. Which alternative seems more attractive?
Plainfield Bakers manufactures and sells the popular line of fat free cookes under name Aunt May's cookies. The process Plainfield employs to manufacturer the cookies is labor-intensive; it relies heavily on direct labor.
Some firms have a lot of fixed costs and a few variable costs, while other firms are configured the other way around. What effect do you think the existence of a high proportion of fixed costs has on the desirability of using ABC methods?
Complete the schedule to compute the pool rates for the different activities.
Burlington Clock Works manufactures fine, handcrafted clocks. The firm uses a job-order costing system, and manufacturing overhead is applied on the basis of direct-labor hours.
What is the appropriate cost driver for allocating overhead to pizzas in Year 1? Using normal costing, compute the cost of each of the 336,033 meat pizzas produced in year 1. Was overhead over-or under applied during the year? By how much? Why do yo..
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