Describe how the given system had been used

Assignment Help Cost Accounting
Reference no: EM131643903

Assignment 1: Discussion-Activity-Based Costing System

Activity-based costing is one of the most accurate methods that can be used to allocate overhead. However, it is not often used in many smaller organizations due to the substantial cost involved with its implementation.

Using the module readings and the Argosy University online library resources, research the activity-based costing method. Use your research and/or your experiences as a working professional to complete this assignment.

Respond to the following:

• If you have utilized an activity-based costing system in your former or current employment, describe how this system had been used. In your response, be sure to include your experience and position on the effectiveness of the activity-based costing system. Support your ideas by drawing on your readings and scholarly articles.

• If you have not encountered this type of system in your work experience, assume a company needs to switch to an ABC system. Describe the common cost drivers that could be used.

• How would the organization identify the cost drivers?

• How would the organization use them in the implementation of this system? You may use your former or current company for the analysis.

• review and comment on at least two peers' responses.

Write your initial response in 300-500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation

Do the following when responding to your peers:

• Read your peers' answers.

• Provide substantive comments by

o contributing new, relevant information from course readings, Web sites, or other sources;
o building on the remarks or questions of others; or
o sharing practical examples of key concepts from your professional or personal experiences

• Respond to feedback on your posting and provide feedback to other students on their ideas.

• Make sure your writing

o is clear, concise, and organized;
o demonstrates ethical scholarship in accurate representation and attribution of sources; and
o displays accurate spelling, grammar, and punctuation.

Assignment 2: Manufacturing Overhead

Borealis Manufacturing has just completed a major change in its quality control (QC) process. Previously, products had been reviewed by QC inspectors at the end of each major process, and the company's 10 QC inspectors were charged to the operation or job as direct labor. In an effort to improve efficiency and quality, a computerized video QC system was purchased for $250,000. The system consists of a minicomputer, fifteen video cameras, and other peripheral hardware and software. The new system uses cameras stationed by QC engineers at key points in the production process. Each time an operation changes or there is a new operation, the cameras are moved, and a new master picture is loaded into the computer by a QC engineer. The camera takes pictures of the units in process, and the computer compares them to the picture of a "good" unit. Any differences are sent to a QC engineer, who removes the bad units and discusses the flaws with the production supervisors. The new system has replaced the 10 QC inspectors with two QC engineers.

The operating costs of the new QC system, including the salaries of the QC engineers, have been included as factory overhead in calculating the company's plant-wide manufacturing-overhead rate, which is based on direct-labor dollars. The company's president is confused. His vice president of production has told him how efficient the new system is. Yet there is a large increase in the overhead rate. The computation of the rate before and after automation is as follows:

 

Before

After

Budgeted Manufacturing Overhead

1,900,000

2,100,000

Budgeted Direct Labor Cost

1,000,000

700,000

Budgeted Overhead Rate

190%

300%

"Three hundred percent," lamented the president. "How can we compete with such a high overhead rate?"

Using the module readings and the Argosy University online library resources, research manufacturing overhead.

Review the situation. Complete the following:

• Define "manufacturing overhead," and:

o Cite three examples of typical costs that would be included in manufacturing overhead.

o Explain why companies develop predetermined overhead rates.

• Explain why the increase in the overhead rate should not have a negative financial impact on Borealis Manufacturing.
• Explain how Borealis Manufacturing could change its overhead application system to eliminate confusion over product costs.
• Describe how an activity-based costing system might benefit Borealis Manufacturing.

Write a 3-4-pages paper in Word format. Apply APA standards to citation of sources.

Reference no: EM131643903

Questions Cloud

Describe clinical manifestations associated pathogenesis : Define the basic approach to diagnosis and the use of diagnostic procedures to identify the disease process
Explain how the marketing plan targets the market segment : Explain how the marketing plan targets the market segment. Provide a positioning statement for your project. Define the products and services you will offer.
Explain non-pharmacological interventions : Explain Non-pharmacological interventions, Pharmacological interventions
Find the population proportion of households : Construct a 95% confidence interval for the population proportion of households where the women make the majority of the purchasing decisions.
Describe how the given system had been used : Describe how this system had been used. In your response, be sure to include your experience and position on effectiveness of the activity-based costing system.
Define the random variables x in words : Suppose the marketing company did do a survey. They randomly surveyed 200 households and found that in 120 of them, the woman made the majority.
Discuss administration for a very young and very old patient : Compare and contrast safe medication administration for a very young and very old patient
Review problem related to the marketing companies : Marketing companies are interested in knowing the population percent of women who make the majority of household purchasing decisions.
identify an ICT-related ethical issue from a case study : Assessment - Applying Ethical Theory. Identify an ICT-related ethical issue from a media article or case study; apply proper academic referencing

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

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