Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 10, Problem 10.47AP
1.
To determine
To calculate: The highest acceptable transfer price for the divisions.
2.
To determine
To calculate: Lowest acceptable transfer price that will be negotiated between the buying and the selling division.
3.
To determine
To identify: The transfer price that the manager of the Small components division would prefer and the transfer price that the manager of the Computer division would prefer.
4.
To determine
To calculate: The transfer price if the company follows a policy of full absorption cost plus 9% for all in-house transfers.
5.
To determine
To calculate: The transfer price if the company follows a policy of total
6.
To determine
To calculate: The transfer price if the company follows a policy of full absorption cost plus some markup and it also incurs variable selling expenses in its internal transfers.
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Activity-Based Costing, Lean Operations, and the Costs of Quality
E4-24A Compare traditional and ABC allocations on a job (Learning Objective 2)
Radley Products has adopted an ABC costing system. The following manufacturing activi-
ties, indirect manufacturing costs, and cost drivers have been identified:
Activity
Machine setup
Total estimated MOH
costs related to activity
Total estimated amount of
allocation base activity
$ 120,000
$1,050,000
Machining
Polishing
Quality control
Facility-level costs
sdngas 000'
6,000 machine hours
10,000 polishing cloths
4,000 tests run
50,000 DL hours
000'08
$ 280,000
$ 120.000
Total manufacturing overhead (MOH)
$1.650.000
The Job Cost Record for Job #624 revealed that direct materials requisitioned for the
job totaled $1,050. The Job Cost Record also showed that direct labor for this job totaled
10 hours at a wage rate of 525 per hour.
Other data collected on the resources used by Job #624 included:
1 machine setup required
5 machine hours
2…
Click to watch the Tell Me More Learning Objective 1 video and then answer the questions below.
1. Which of the following manufacturers is most likely to use a process cost system?
Purse manufacturer
Sports drink manufacturer
Automobile manufacturer
Guitar manufacturer
2. Process and job order cost systems are similar in that both systems _______.
record and summarize product costs
classify product costs as direct materials, direct labor, and factory overhead
allocate factory overhead costs to products
All of these choices are correct.
E-LEARNING SYSTEM (ACADEMIC)
E-LEARNING SERVICES
SQU LIBRARIES -
The correct answer is: Objectivity and verifiability
Company XYZ is currently producing AND selling 10,000 units of product A. At this level, the total
product cost was $60,000. This included $10,000 direct materials, $20,000 direct labor and
$30,000 manufacturing overhead cost, which included 20% fixed manufacturing overhead cost.
The selling and administrative expenses were $100,000, which included $60,000 variable selling
and administrative costs. Assume that the selling price per unit $20, how much was the total
contribution margin?
O a. $134,000
O b. $194,000
O c.
None of the given answers
O d. $104,000
O e.
$86,000
The correct answer is: $86,000
A period cost includes all EXCEPT:
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Chapter 10 Solutions
Managerial Accounting (5th Edition)
Ch. 10 - (Learning Objective 1) Companies often...Ch. 10 - (Learning Objective 1) Which of the following is...Ch. 10 - (Learning Objective 1) In terms of responsibility...Ch. 10 - (Learning Objective 2) Which of the following is...Ch. 10 - (Learning Objective 2) A segment margin is the...Ch. 10 - Prob. 6QCCh. 10 - Prob. 7QCCh. 10 - Prob. 8QCCh. 10 - Prob. 9QCCh. 10 - Prob. 10QC
Ch. 10 - Identify and understand responsibility centers...Ch. 10 - Identify types of responsibility centers (Learning...Ch. 10 - Identify centralized and decentralized...Ch. 10 - Prob. 10.4SECh. 10 - Prob. 10.5SECh. 10 - Prob. 10.6SECh. 10 - Calculate ROI (Learning Objective 3) Refer to Epic...Ch. 10 - Prob. 10.8SECh. 10 - Prob. 10.9SECh. 10 - Prob. 10.10SECh. 10 - Prob. 10.11SECh. 10 - Interpret a performance report (Learning Objective...Ch. 10 - Prob. 10.13SECh. 10 - Classify KPIs by balanced scorecard perspective...Ch. 10 - Use vocabulary terms (Learning Objectives 1, 2, 3,...Ch. 10 - Prob. 10.16SECh. 10 - Identify type of responsibility center (Learning...Ch. 10 - Complete and analyze a performance report...Ch. 10 - Prepare a segment margin performance report...Ch. 10 - Compute and interpret the expanded ROI equation...Ch. 10 - Prob. 10.21AECh. 10 - Prob. 10.22AECh. 10 - Comparison of ROI and residual income (Learning...Ch. 10 - Prob. 10.24AECh. 10 - Comprehensive flexible budget problem (Learning...Ch. 10 - Prepare a flexible budget performance report...Ch. 10 - Work backward to find missing values (Learning...Ch. 10 - Construct a balanced scorecard (Learning Objective...Ch. 10 - Sustainability and the balanced scorecard...Ch. 10 - Identify type of responsibility center (Learning...Ch. 10 - Complete and analyze a performance report...Ch. 10 - Prob. 10.32BECh. 10 - Prob. 10.33BECh. 10 - Prob. 10.34BECh. 10 - Prob. 10.35BECh. 10 - Prob. 10.36BECh. 10 - Prob. 10.37BECh. 10 - Prob. 10.38BECh. 10 - Prob. 10.39BECh. 10 - Prob. 10.40BECh. 10 - Prob. 10.41BECh. 10 - Sustainability and the balanced scorecard...Ch. 10 - Prepare a budget with different volumes for...Ch. 10 - Prepare and interpret a performance report...Ch. 10 - Prob. 10.45APCh. 10 - Prob. 10.46APCh. 10 - Prob. 10.47APCh. 10 - Evaluate subunit performance (Learning Objectives...Ch. 10 - Prob. 10.49BPCh. 10 - Prob. 10.50BPCh. 10 - Evaluate divisional performance (Learning...Ch. 10 - Prob. 10.52BPCh. 10 - Determine transfer price at a manufacturer under...Ch. 10 - Evaluate subunit performance (Learning Objectives...Ch. 10 - Prob. 10.55SC
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