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At Bikes Unlimited, it is reasonable to assume that the activity, number of units produced, will affect total variable costs for direct materials and direct labor. However, companies often use a different activity to estimate total variable costs. What types of activities might be used to estimate variable costs?
Assume that the costs incurred in the JIT environment are for a work cell that completed 5,000 1-pound bags of coffee during the month. Compute the total direct cost and the direct cost per unit for the bags produced.
Research the company and discuss why a job order costing system is the 'correct' fit for that organization. Discuss a product the company sells and discuss what direct and indirect costs would be included on the job cost sheet.
You are required to evaluate the project to extend the storage facilities using the NPV method, assuming the company's cost of capital is 20%.
For each independent case, calculate amortization of the net loss or gain that should be included as a component of pension expense for the current year.
Ziegler Corporation issues $400,000 of 9%, 5-year bonds on January 1, 2012, at 104. If Ziegler uses the effective-interest method in amortizing the premium, will the annual interest expense increase or decrease over the life of the bonds? Explain..
Indicate the combined effect of the errors on (a) revenues, (b) expenses, and (c) net income for the year ended August 31, 2014.
Calculate the Net Present Value and Internal Rate of Return and company is considering the acquisition of equipment that would radically change its manufacturing process.
Sales for April were $2,188,400. Sales salaries were $120,000, shipping and import duties 130,000, advertising 75,000, and office salaries $37,000.
a. What is the pension expense that Rapley Enterprises should report for 2013 b. What is the amount that Rapley Enterprises should report as its pension liability on its balance sheet as of December 31, 2013
Compute the total cost associated with each job. Show the subtotals for each cost category. Compute the product unit cost for each job.
Write a 700- to 1,000-word paper identifying the specific cost accounting system an organization utilizes and how it uses the accounting information for financial management.
Identify any problem that you see in the company's standard cost system or in the manner in which cost variances are assigned to the responsible managers.
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