Reference no: EM13876809
Flexible Budgets with ABC The Cameron Corporation uses an ABC system, with the following manufacturing support (i.e., factory overhead) costs:
Unit-level support costs:
Electricity $1.00 per machine hour
Maintenance labor $1.50 per machine hour Batch-level support costs:
Production set-ups $300 per setup
Incoming Inspection $100 per purchase order Product-level support costs:
Engineering support $2,000 per engineering change order (ECO) Facilities-level support costs:
Depreciation-plant $15,000 per month
Insurance and property taxes $5,000 per month
The plant manager has asked you to prepare flexible (control) budgets for three levels of possible activity for the coming month: 4,000 machine hours, 5,000 machine hours, and 6,000 machine hours. Associated activity levels for manufacturing support costs are as follows:
|
|
Level of Output (MH)
|
|
4,000
|
5,000
|
6,000
|
|
Production setups
|
20
|
24
|
28
|
|
Purchase orders
|
10
|
15
|
20
|
|
ECOs
|
12
|
15
|
18
|
Required
1. Use an Excel spreadsheet to prepare a flexible (control) budget for the following three output levels:
(a) 4,000 machine hours, (b) 5,000 machine hours, and (c) 6,000 machine hours.
2. How do these flexible budgets differ from those prepared under a traditional approach (e.g., for the case where a single activity measure, machine hours, is used to construct the flexible (control) budget)?
|
Case - devine vs roche biomedical laboratories
: Is Devine an intended third party beneficiary of the BIW-NorDx contract? Why or why not? Do drug-testing labs have a duty to the persons being tested to exercise reasonable care in conducting the tests
|
|
Using the traditional income statement format
: Paul's Limo Service has the following information for June:
|
|
What is the cost assigned to each of the three activities
: What is the cost assigned to each of the three activities? Also, what is the unused capacity and the associated cost of unused capacity for each activity?
|
|
What is the current status of the proposed fair pay act
: Check out the Web site of the National Coalition for Pay Equity - What is the cur- rent status of the proposed Fair Pay Act and what are the current race and gender income/wage disparitites?
|
|
How do the flexible budgets differ from traditional approach
: How do these flexible budgets differ from those prepared under a traditional approach (e.g., for the case where a single activity measure, machine hours, is used to construct the flexible (control) budget)?
|
|
Cost of goods manufactured
: The following information comes from the accounting records for Santa Inez, Inc., for July:
|
|
What is the budgeted manufacturing support cost per unit
: What is the budgeted manufacturing support cost per unit of S-101? What is the budgeted manufacturing support cost per unit of C-110?
|
|
Butte components produces a variety of hardware products
: 1.Butte Components produces a variety of hardware products, primarily for the do it yourself (DIY) market.
|
|
Determine the forces in the members
: The support assembly shown is bolted in place at B, C, and D and supports a downward force P at A. Knowing that the forces in members AB, AC, and AD are directed along the respective members and that P = 45 lb, determine the forces in the members.
|