MANAGERIAL ACCOUNTING F/MGRS.
MANAGERIAL ACCOUNTING F/MGRS.
5th Edition
ISBN: 9781259969485
Author: Noreen
Publisher: RENT MCG
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Chapter 3A, Problem 3A.3E

1.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead. Absorption costing is used to calculate the cost of product while taking indirect and direct expense into account. Activity based costing assign the cost of all the activity of the organization according to their actual consumption

To compute: The unit products cost for D and S products using the company’s traditional costing system.

2.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead. Absorption costing is used to calculate the cost of product while taking indirect and direct expense into account. Activity based costing assign the cost of all the activity of the organization according to their actual consumption

To compute: The unit products cost for two products using activity based costing system.

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Problem 1 (adapted)Kai Corp. manufactures two models of beds, the standard and the deluxe model. The following activity and cost information has been compiled:Standard Deluxe OH CostsNo. of setups 9 21 P 90,000No. of components 90 150 210,000No. of DLH 650 150Required:Compute the total amount of overhead costs assigned to each model using: 1. Traditional costing system2. Activity-based costing system3. Discuss the effects of the difference in the computed amounts of overheadcosts.
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