Reference no: EM13504070
Requirements:
1. Based on all of the date provided, compute the cost driver rates for each of the four activities.
2. Compute the per unit product costs for each of the four products.Compute this cost using ABC allocation for overhead. Show the computation for each per unit product cost in detail.
3. Prepare a "Monthly Profit Report", like the one provided on page 4 of this packet. Create this report using the results of your ABC overhead allocation.
4. Prepare a written "Management Report" that explains to the management team what Activity Based Costing is, how it was used to generate the Monthly Profit Report (from requirement #3). Explain why the profit for each product is different when comparing the Traditional report with the ABC report. Explain what the company might consider doing, based on all of this information, to stop the erosion of company profits. Defend your recommendations with data.
Additional Consideration:
Mr. Port wonders what would happen to costs if plant capacity was shifted from 20,000 machine-hours a month to 40,000 machine-hours per month.
Requirements:
5. Compute the new cost per unit for each of the products considering the increase in capacity. Show the computation for each per unit product cost in detail.
6. What is the cost of the unused capacity if it is assumed that the company has 40,000 machine-hours of capacity but it using 20,000 machine-hours? Amend your "Management Report" to include a discussion on how to best use the additional capacity.
|
What is the pressure in the artery
: At a given instant, the blood pressure in the heart is 1.50 104 Pa. If an artery in the brain is 0.43 m above the heart, what is the pressure in the artery
|
|
Write a conversion factor that relates moles of hcl
: Consider the neutralization reaction that takes place when hydrochloric acid reacts with aqueous sodium hydroxide.
|
|
Prepare a cash budget
: Prepare a schedule of expected cash collections for April, May, and June, and for the three months in total.
|
|
Cometabolize tetrachloroethane
: A strain of bacteria has been isolated that can cometabolize tetrachloroethane
|
|
Compute the cost driver rates for each of four activities
: Prepare a "Monthly Profit Report", like the one provided on page 4 of this packet. Create this report using the results of your ABC overhead allocation.
|
|
What is the minimum number of moles of h2so4
: What is the minimum number of moles of H2SO4 that must react to form 1.7752 moles of manganese(II) sulfate?
|
|
Do you consider chambers assertion is justified
: Discuss the above quotation, particularly as it applies to non-current assets. Do you consider Chamber's assertion is justified?
|
|
Find finances partial payment of the sale
: On April 1, 20X0, your company finances partial payment of the sale of machinery to a customer for a $20,000, 3-year, 8% note receivable.
|
|
Compute tanagers taxable income and tax for the year
: Compute Tanager's taxable income and tax for the year and compute Tanager's taxable income and tax for the year
|