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1) Sarah Aiken is the owner of Pretty Paws, a dog-grooming service. At standard, it takes 1 hour to groom each dog. During the month of October, it took Pretty Paws employees 345 hours to groom 300 dogs at a total labor cost of $6,072. In November, employees spent 355 hours to groom 310 dogs at a total labor cost of $6,313.50; in December, 360 hours were used to groom 330 dogs at a total labor cost of $6,532.The wage rate standard for groomers is $17.75 per hour.
Required:
a. Calculate the labor rate and efficiency variances for each of the past three months.
b. What trends can you spot regarding the variances over the past three months? What might be a cause for the labor rate variance? What might be a cause for the labor efficiency variance?
Evaluating product line costs and prices using ABC - Determine the cost of each product line using ABC.
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Which method provides the best estimates of fixed and variable costs?
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Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity- based costing system contains the following six activity cost pools and activity rates:
Milan Machining Company has identified the following overhead activities, costs, and activity drivers for the coming year. Determine the cost of the Receiving activity. Assign the overhead costs to each product using ABC.
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Hull Motors, Inc. (HMI), produces small gasoline-powered motors for use in lawn mowers. The company has been growing steadily over the past five years and is operating at full capacity.
Estimate that it will take five years to complete
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