Compute the total amount of overhead costs assigned

Assignment Help Managerial Accounting
Reference no: EM132564722

Kai Corp. manufactures two models of beds, the standard and the deluxe model. The following activity and cost information has been compiled:

                                     Standard                  Deluxe               OH Costs

No. of setups                  9                      21                     P 90,000

No. of components          90                    150                        210,000

No. of DLH                      650                     150

Required:

Question 1: Compute the total amount of overhead costs assigned to each model using:

1. Traditional costing system

2. Activity-based costing system

3. Discuss the effects of the difference in the computed amounts of overhead costs.

Reference no: EM132564722

Questions Cloud

Reduction in the cash conversion cycle : Costco carries an average inventory of $3,000,000. Its annual sales are $20 million and its gross profit margin is 45%. The receivables conversion period
What is the npv for project-geary machine shop : Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $595,200 is estimated
What is the average cash gain or loss during the month : Kraft budgeted sales are $10,000 per month and let's assume the sales stay the same every month. Its customers pay Kraft based on the following pattern
What is the constant growth rate that mastercard : Mastercard Inc.'s stock has a required return of 13% and the stock is currently priced at $50 per share. Mastercard just paid a dividend of $1.00
Compute the total amount of overhead costs assigned : Compute the total amount of overhead costs assigned to each model using Activity-based costing system and Traditional costing system
25-day reduction in the cash conversion cycle : Costco carries an average inventory of $3,000,000. Its annual sales are $20 million and its gross profit margin is 45%. The receivables conversion
Customers and enforcing credit policy : Dyson is considering changing the credit term for its customers and also enforcing its credit policy more strongly. Dyson's annual sales is $13 million
Prepare kyler flexible budget performance report : Prepare Kyler?'s flexible budget performance report. What variance contributed most to the? year's favorable? results? What caused this? variance?
Advantageous position ahead of the normal investor : Apple Incorporated (AI) board of directors has indicated that they will repurchase AI's stock effective July 1st 2020. You currently hold 100 AI's stock

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

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

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

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

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

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

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.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd