Managerial Accounting: Creating Value in a Dynamic Business Environment
11th Edition
ISBN: 9781259569562
Author: Ronald W Hilton Proffesor Prof, David Platt
Publisher: McGraw-Hill Education
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Question
Chapter 5, Problem 53P
1.
To determine
Calculate the unit of a production order for 100 specially coated plates in the cancer testing.
2.
To determine
Prepare a excel spreadsheet to solve the preceding requirement.
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Compute the total overhead that should be assigned to the medical-testing agent order.
What is the overhead cost per box of testing agent?
Customs makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with $26,000 in overhead. Poly is estimated to have 750,000 setups and 140,000 inspections, while silk has 250,000 setups and 60,000 inspections. Complete the table below to determine how much overhead is applied to each product?
PLEASE NOTE: All cost pool activity rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). The cost pool activity rates will NOT include a label. The dollar amount is rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).
Activity
Activity Rate for Poly
Poly Applied OH
Activity Rate for Silk
Silk Applied OH
Setup
Inspection
Total
Healthfirst (HF) Ltd has recently started to produce a face shield and product's standard cost data
are as follows:
Cost per unit
Direct materials Perspex (0.5 meters @ $15 per meter)
$ 7.50
Direct materials Hardened Plastic (0.25 meters at $20.00 per meter) 5.00
Direct manufacturing labour (0.5 hr @ $30.00 per hr)
Manufacturing overhead
Total Cost
15.00
Required
Should HF accept the offer. Show all computations.
30.00
$57.50
Additional information
45% of the Manufacturing overhead changes with the number of units produced. Additionally, if
production of face shields is discontinued, 20% of the remaining fixed cost will be avoided. The
budgeted production used to compute overheads is 10,000 units per quarter. HF has been
approached by another company who is willing to supply the face shields at $50. Per unit. The
space used to manufacture face shields can be used to Generate $ 120,000 in contribution margin
per quarter.
Chapter 5 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 5 - Briefly explain how a traditional, volume-based...Ch. 5 - Prob. 2RQCh. 5 - Explain how an activity-based costing system...Ch. 5 - What are cost drivers? What is their role in an...Ch. 5 - List and briefly describe the four broad...Ch. 5 - How can an activity-based costing system alleviate...Ch. 5 - Prob. 7RQCh. 5 - How is the distinction between direct and indirect...Ch. 5 - Explain the concept of a pool rate in...Ch. 5 - Briefly explain two factors that tend to result in...
Ch. 5 - List three factors that are important in selecting...Ch. 5 - Prob. 12RQCh. 5 - Explain why a new product-costing system may be...Ch. 5 - Prob. 14RQCh. 5 - Are activity-based costing systems appropriate for...Ch. 5 - Explain why maintaining their medical-services...Ch. 5 - How could the administration at Immunity Medical...Ch. 5 - Prob. 18RQCh. 5 - Prob. 19RQCh. 5 - What is meant by the term activity analysis? Give...Ch. 5 - Prob. 21RQCh. 5 - What is meant by customer-profitability analysis?...Ch. 5 - Explain the relationship between customer profit...Ch. 5 - What is a customer profitability profile?Ch. 5 - Describe the use of practical capacity in a TDABC...Ch. 5 - Tioga Company manufactures sophisticated lenses...Ch. 5 - Urban Elite Cosmetics has used a traditional cost...Ch. 5 - Kentaro Corporation manufactures Digital Video...Ch. 5 - Kentaro Corporation manufactures Digital Video...Ch. 5 - Prob. 31ECh. 5 - Refer to the description given for Wheelco, Inc....Ch. 5 - Prob. 33ECh. 5 - United Technologies Corporation implemented...Ch. 5 - Redwood Company sells craft kits and supplies to...Ch. 5 - Non-value-added costs occur in nonmanufacturing...Ch. 5 - Since you have always wanted to be an...Ch. 5 - Prob. 39ECh. 5 - Prob. 42ECh. 5 - Big Apple Design Company specializes in designing...Ch. 5 - Prob. 44ECh. 5 - Borealis Manufacturing has just completed a major...Ch. 5 - Ontario, Inc. manufactures two products, Standard...Ch. 5 - Kitchen Kings Toledo plant manufactures three...Ch. 5 - Prob. 48PCh. 5 - Maxey Sons manufactures two types of storage...Ch. 5 - Prob. 50PCh. 5 - John Patrick has recently been hired as controller...Ch. 5 - The controller for Tulsa Medical Supply Company...Ch. 5 - Prob. 53PCh. 5 - Prob. 54PCh. 5 - Prob. 55PCh. 5 - World Gourmet Coffee Company (WGCC) is a...Ch. 5 - Knickknack, Inc. manufactures two products: Odds...Ch. 5 - Prob. 58PCh. 5 - Marconi Manufacturing produces two items in its...Ch. 5 - Gigabyte, Inc. manufactures three products for the...Ch. 5 - Refer to the new target prices for Gigabytes three...Ch. 5 - Prob. 62PCh. 5 - Better Bagels, Inc. manufactures a variety of...Ch. 5 - Midwest Home Furnishings Corporation (MHFC)...Ch. 5 - Fresno Fiber Optics, Inc. manufactures fiber optic...Ch. 5 - Refer to the information given in the preceding...Ch. 5 - Whitestone Company produces two subassemblies,...Ch. 5 - Morelli Electric Motor Corporation manufactures...Ch. 5 - Refer to the product costs developed in...Ch. 5 - Morelli Electric Motor Corporations controller,...
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