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Assignment: Cost Flows in an Organization
By the due date assigned, respond to the following in the Discussion Area below:
Assume you are a division manager for a manufacturing company of your choice.
• Describe the company and identify the division you manage.
• Think about the costs associated with developing and manufacturing your product. Identify whether the company would use process or product costing and describe why the selected method is most appropriate.
• Identify the manufacturing costs involved in producing your product and classify each cost as direct materials, direct labor, or manufacturing overhead.
• Discuss the most appropriate method for allocating the manufacturing overhead. How would different allocation methods affect the bottom line for your division?
Comp Media buys its product for $ 60 and sells it for $ 130 per unit. The sales staff receives a 10% commission on the sale of each unit. Its June income statement follows.
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Compute the predetermined overhead rate for each department and compute the total manufacturing costs assigned to jobs in January in each department.
Calculate the cost of a standard job and a special job under the activity-based costing system and activity-based costing system to better manage itsbusiness?
What discount rate did you use to evaluate the investment alternatives offered by the proposed capital expansion and replacement program?
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