Should the company follow the controllers recommendations

Assignment Help Accounting Basics
Reference no: EM13862739

Problem: Activity-based costing and versus traditional costing

 

C & W Corporation manufactures travel clocks and watches. Overhead costs are currently allocated using direct labor-hours, but the controller has recommended using an activity-based costing system based on the following data:

 

Activity

Cost Driver

Cost

Activity Level

Tray& Clocks

Watches

Production setup

Setups

$100,000

20

30

Material handling and requisition

Parts

30,000

24

36

Packaging and shipping

Units shipped

60,000

80,000

120,000

Total overhead


$190,000



 

a. Compute the amount of the total overhead allocated to each of the products under activity based costing.

b. Compute the amount of total overhead allocated to each of the products using labor-hours as the allocation base. Assume labor-hours required to assemble each unit are .5 per travel clock and 1.0 per watch, and that 80,000 travel clocks and 120,000 watches were produced.

c. Should the company follow the controller's recommendations?

Reference no: EM13862739

Questions Cloud

How much interest revenue did arabian earn this year : Compute Algonquins quick (acid-test) ratio. Is this ratio strong or weak and how much interest revenue did Arabian earn this year?
Profit made on the stock at the end of one year : There are two stocks in the stock market, stock A and stock B. If bought today, each would cost $10. Market analysts have constructed the following table of joint outcomes, with associated joint probabilities. An outcome is defined as the profit made..
Different types of families : Different Types of Families- Please pick 2 of the topics below and discuss, based on the reading and your personal experience (if applicable), how those topics impact children
Define racial profiling : Based on your review of the resource(s) above, please address the following: Define racial profiling. Explain the connection between stereotypes and racial profiling
Should the company follow the controllers recommendations : Should the company follow the controller's recommendations? Compute the amount of the total overhead allocated to each of the products under activity based costing.
Discuss the evolution and codification of engineering design : Discuss the primary need or needs that were being addressed in each period. Discuss the evolution and codification of the engineering design process over the course of these four periods. What kind of societal entities became involved in the proces..
How much are consolidated dividends of 2013 : Prepares consolidation worksheet D to reflect necessary adjustment for dividend and how much are consolidated dividends of 2013
Expected value of the investment opportunity : Suppose an economic agent has a utility function U = Ln (R). Assume R is the return on investment and utility is the natural log of investment. If the investment is highly successful then the agent earns $10000. Calculate the expected utility of the ..
Differences between these two kinds of arguments : Thomas) are rational proofs for the existence of God. What are the differences between these two KINDS of arguments? Explain. Is one type of argument more persuasive than the other? Why? Give examples to support your position.

Reviews

Write a Review

Accounting Basics Questions & Answers

  A company has 800 per unit in variable costs and 400 per

a company has 8.00 per unit in variable costs and 4.00 per unit in fixed costs at a volume of 50000 units. if the

  Which of the following measures how readily assets can be

which of the following measures how readily assets can be converted to cash relative to how soon liabilities will have

  The sweetwater candy company would like to buy a new

the sweetwater candy company would like to buy a new machine that would automatically dip chocolates. the dipping

  Polly enterprises manufactures lamps that normally sell for

polly enterprises manufactures lamps that normally sell for 75 each. there are 300 defective lamps in inventory which

  Cash flow statement and computing net cash flow

Net cash flow provided (used) by operating activities. Net cash flow provided (used) by investing activities. Net cash flow provided (used) by financing activities.

  The historical cost concept reflects the fact that

the historical cost concept reflects the fact that financial accounting practice favors reliability over relevance

  Evaluate and explain what types of business entities

Events in the world of corporate finance during the past few years have shown the importance of transparent and accurate financial reporting by businesses.

  What are the major features of a jit production system

What are the major features of a JIT production system such as that of High Point and prepare summary journal entries for February.

  Break-even sales volume and dollars

What is the break-even sales volume and dollars for each nut?

  Discuss the implications has for comparing the results

Whereas Kiram Corp. depreciates its plant assets over a 20-year life. Discuss the implications has for comparing the results of the two companies.

  The topic of cost volume profit analysis

The topic of cost volume profit analysis, do you use the normal capacity units or the expected capacity units?

  A thin metal disk of mass m200 x 10-3 kg and radius r220cm

a thin metal disk of mass m2.00 x 10-3 kg and radius r2.20cm is attached at its center to a long fiber. when the disk

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