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the following activities relating to indirect production costs:Activity Activity Costs Cost DriversMachine Setup $180,000 1,500 setup hoursMaterials Handling $50,000 12,500 pounds of materialsElectric Power $20,000 20,000 kilowatt hoursCompany has obtained the following data concerning two products:
ProductsSpeedy1 Speedy2Number of units produced 4,000 20,000Direct materials cost $20,000 $25,000Direct labor cost $12,000 $20,000Number of setup hours 100 120Pounds of materials used 500 1,500Kilowatt-hours 1,000 2,000Required:Using the activity-based costing approach, calculate the manufacturing cost per unit for Speedy1 and Speedy2.
how variable cost help in decision making.with suitable example
We have noticed that working capital is needed to finance that portion of current assets that is not financed through current liabilities. We also noticed that the investments repr
Time Keeping - Cost Accumulation A labour cost control routine should ensure that payments are paid only to employees who have spent time at the work place and that payments a
What are the basic characteristics of a relevant cost? Why are future costs not always relevant? Are all relevant costs found in accounting records?
Break-Even Analysis Break-even point is the volume of sales at that there is no loss or. Break-even charts graphically show the relationship of cost to profits and volume and
7.14
sorption costing
Participation - Behavioural Aspects of Standards It has already been pointed out in the previous paragraph such standard costing systems would be more acceptable whether the e
How to calculate adjustments
Accounting for Labour costs We will contain an overview of accounting for labour costs as: a) Gross Earnings It is illustrated as item A that appears like a credit i
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