Reference no: EM13949538
Plata Company produces two products: a mostly handcrafted soft leather briefcase under the label Maletin Elegant and a leather briefcase produced largely through automation and sold under the label Maletin Fina. The two products use two over- head activities, with the following costs:
Setting up equipment $ 3,000 Machining 18,000
The controller has collected the expected annual prime costs for each briefcase, the machine hours, the setup hours, and the expected production.
| |
Elegant
|
Fina |
|
Direct labor
|
$9,000
|
$3,000
|
|
Direct materials
|
$3,000
|
$3,000
|
|
Units
|
3,000
|
3,000
|
|
Machine hours
|
500
|
4,500
|
|
Setup hours
|
100
|
100
|
Required
1. Do you think that the direct labor costs and direct materials costs are accurately traced to each briefcase? Explain.
2. Calculate the consumption ratios for each activity.
3. Calculate the overhead cost per unit for each briefcase, using a plantwide rate based on direct labor costs. Comment on this approach to assigning overhead.
4. Calculate the overhead cost per unit for each briefcase using overhead rates based on machine hours and setup hours. Explain why these assignments are more accurate than using direct labor costs.
|
Who reads financial statements
: Who reads financial statements? List at least three different categories of people. For each category, provide an example of the type of information they might be interested in and discuss why.
|
|
What are the missions and goals for a community health
: What are the missions and goals for a community health need for an OBESITY program - how would the organizations program be structured? What would the corporate culture of the organizations program be?
|
|
Found in regions where tectonic plate boundaries
: Transform faults are typically found in regions where tectonic plate boundaries are moving parallel to one another, and are the site of frequent earthquakes. A good example of such a location is:
|
|
Kinetic and potential energy effects
: For the water, determine (a) the quality at the initial state, (b) the temperature at the final state, in °F, and (c) the heat transfer, in Btu. Kinetic and potential energy effects can be ignored.
|
|
Compute the consumption ratios for each activity
: Calculate the consumption ratios for each activity. Do you think that the direct labor costs and direct materials costs are accurately traced to each briefcase? Explain.
|
|
What is information technology class
: An articulation of the business requirements in terms of specific processes or business development needs.
|
|
Find the critical f-value to test the hypothesis
: Find the critical F-value to test the hypothesis that there is no difference among the means. Use α = .05, Find the test F statistic to test the hypothesis that there is no difference among the means. Use α = 0.05.
|
|
Determine the specified property data
: 1. For each case, determine the specified property data and locate the state by hand on a sketch of the T-y diagram. (a) Evaluate the specific volume, in ft3/lb, and the specific enthalpy, in Btu/lb, of water at 400°F and a pressure of 3000 lbf/in...
|
|
What is some capacity measures for each of the following
: What is some capacity measures for each of the following
|