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The Pinewood Furniture Company Pty Ltd plans to design two lines of chairs in the coming year-lounge and patio. The company is considering introducing an activity-based costing system. Given below are every activity, its cost and its related activity driver.Activity Cost Activity Driver Material Setups $300,000 Number of setupsMaterial handling $250,000 Number of partsCutting $700,000 Number of partsAssembly $600,000 Direct labour hoursFinishing $450,000 Number of unitsThe level of activity for the year is: Lounge PatioUnits to be produced 10,000 5,000Number of Setups 60 60Number of parts per unit 10 5Direct Labour Hours per unit 5 2Needed:Under an activity-based costing system, what is the total cost of patio chairs for the annual?
This is a most familiar form of medium term financing in obtaining plant and vehicles, machinery etc. In hire purchase transactions, the purchaser of goods will obtain the possessi
Ageing Schedule: AS is classifies outstanding accounts receivable at a specified point of time into various age brackets. A clarifying ageing schedule is specified below.
BENCH MARKING In the current business environment, organizations are under a lot of pressure to improve performance and that of their divisions or subsidiaries. Bench marking i
Value analysis Is a formalized technique involving a rigorous analysis of products at the design stage or at any time during the saleable lives, to determine their value charac
what are the different arguments against direct materials, direct labor, and factory overhead
Transient Analysis A state is said to be transient if it is impossible to move to that state from any other state except itself. This state is temporary and eventually a stead
Identification of decision packages - Zero base budgeting Each manager should break down his decision unit into smaller decision packages. Top manager may lay down the minimum
Ask question #Miwhy is the activity based costing unaccepable for external financial reportnimum 100 words accepted#
Selective Inventory Management The inventory of an industrial firm generally comprises thousands of items with diverse prices, usage and lead time, as well as procurement and/o
Inventory planning & control under uncertainty The basic EOQ model assumes that all the parameters (elements) in the model are certain (i.e. can be predicted precisely in advan
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