Reference no: EM131201198
Activity-based costing and product cost distortion
Digital Storage Concept Inc. is considering a change to activity-based product costing. The company produces two products, cell phones and tablet PCs, in a single production department. The production department is estimated to require 3,750 direct labor hours. The total indirect labor is budgeted to be $375,000.
Time records from indirect labor employees revealed that they spent 40% of their time setting up production runs and 60% of their time supporting actual production.
The following information about cell phones and tablet PCs was determined from the corporate records:
|
Number ofSetups
|
Direct LaborHours
|
Units
|
|
Cell phones
|
600
|
1,875
|
93,750
|
|
Tablet PCs
|
1,400
|
1,875
|
93,750
|
|
Total
|
2,000
|
3,750
|
187,500
|
a. Determine the indirect labor cost per unit allocated to cell phones and tablet PCs under a single plantwide factory overhead rate system using the direct labor hours as the allocation base.
b. Determine the budgeted activity costs and activity rates for the indirect labor under activity- based costing. Assume two activities-one for setup and the other for production support.
c. Determine the activity cost per unit for indirect labor allocated to each product under activity-based costing.
d. Why are the per-unit allocated costs in (a) different from the per-unit activity cost assigned to the products in (c)?
|
Problem regarding the economic climate of the us
: Economic Research and Paper based on outside from newspapers, magazines, and other relevant sources. These papers will and examine any or political situations/ events that will affect the economic climate of the US / or the world. You will report ..
|
|
What should you do when leaving a voicemail for someone else
: What should you do when leaving a voicemail for someone else? What should you do if you know you'll need to leave the telephone for more than 30 seconds to find information for a caller?
|
|
Can the memory access data fast enough
: Consider a lower-performance version of the Sobel accelerator, dealing with video frames of 320 × 240 8-bit pixels at a rate of 15 frames per second. Repeat the analysis of Example 9.6 to determine a suitable approach to memory accesses for this v..
|
|
Determine the adjusting entries that the company made
: Determine the adjusting entries that the company made on December 31, 2007.- Prepare your answers in general journal form.
|
|
Determine the indirect labor cost per unit
: Determine the indirect labor cost per unit allocated to cell phones and tablet PCs under a single plantwide factory overhead rate system using the direct labor hours as the allocation base.
|
|
Writes the counter value to output controller registers
: When the value changes from 0 to a nonzero value, the program increments a 16-bit counter and writes the counter value to output controller registers 12 (least significant byte) and 13 (most significant byte). The program should not terminate.
|
|
Why else would he do it if he did not get pleasure from it
: Either the government imposes price controls on the cost of prescription drugs, or the pharmaceutical companies will continue to reap huge profits. Therefore, price controls must be imposed, because we cannot tolerate these huge profits any longer..
|
|
Describe closed and open economy goods market
: Describe closed and open economy goods market. Determine which account of the Balance-of-Payments is affected by each of the following transactions and the impact on the market for foreign exchange
|
|
Emerging economic issues
: This question is related to emerging economic issues; How has economics participated in making the world a global village?
|