What abc allocation rate for supervision of direct labor

Assignment Help Accounting Basics

Reference no: EM132473055

Question i: Give a numerical example of non routine decision, Determine the relevant costs for this non routine decision and discuss the analysis (quantitative and qualitative) required to make the decision?

Question ii: Which types of companies would most likely use a process costing system? Provide examples of two Saudi Compagnies.

Question ii. a. Explain the methods with which the cost per unit will be calculated for this type of companies.Explain how the different items of inventory will be evaluated?

Question iii: KLM Compagny has two departments, Assembly and Testing. You are given the following information about the costs of 5 activities that occur at the manufacturing plant monthly:

Activity                                    Total Costs                              Total number of units of Cost Driver
Material handling                          SAR200,000                                      400,000 parts
Supervision of direct labor                126,000                                         90 employees
Janitorial and cleaning                      200,000                                            4,000 hours
Machining                                        300,000                                          7,000 machine hours
Total costs                                      SAR8                                               26,000

The above activities are used by the two departments as follows:

                                                                 Assembly                         Testing
Material handling                                          200,000 parts             200,000 parts
Supervision of direct labor                              40employees             50 employees
Time spent cleaning                                      2,000 hours               2,000 hours
Number of machine hours                               5,000 machine hours    2,000 machine hours

Question iii a. How much of the material handling cost will be allocated to Assembly?

Question iii b. What is the ABC allocation rate for supervision of direct labor?

Reference no: EM132473055

Questions Cloud

Create an appropriate graph of the data : Assessment - Using Graphs to Describe Data - how the values of each variable are distributed in the sample. What does the graph tell us about the data

What was total net cash provided by operating activities : What was the total operating income? What was total net cash provided by operating activities? What accounts for the largest difference between these two amount

What is development policy making : What is Development Policy making and the Roles of Market, State, and Civil Society.

What effect does lowering the estimate for doubtful accounts : Anton Blair is the manager of a medium-size company. What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet

What abc allocation rate for supervision of direct labor : How much of the material handling cost will be allocated to Assembly? What is the ABC allocation rate for supervision of direct labor?

Calculate the revised ending inventory amount : Calculate the revised ending inventory amount? For each of the situations, specify whether the item should be included in ending inventory

What is best option : You believe you can add 25 more customers. You only work 5 days a week. What is your best option? Explain why you believe this is your best choice.

Most efficient economic system for allocating resources : Why do many economists believe that the market system is the most efficient economic system for allocating resources?

How can we measure the opportunity cost of producing a good : Using a bowed outward production possibilities curve between ice cream and hammers, identify graphically the opportunity cost of obtaining an additional hammer.

User Account

All Pages