MANAGERIAL ACCOUNTING-CUSTOM EBOOK>I<
MANAGERIAL ACCOUNTING-CUSTOM EBOOK>I<
12th Edition
ISBN: 9781307661217
Author: HILTON
Publisher: INTER MCG2
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Chapter 5, Problem 58P

1.

To determine

Calculate the material handling rate that would have been used by Person K’s predecessor at Industries NA.

2.a.

To determine

Calculate the revised material handling costs to be allocated on a per purchase order basis.

b.

To determine

Discuss the reason behind purchase orders might be a more reliable cost driver than the dollar amount of direct material.

3.

To determine

Calculate the change in material handling cost applied to government contracts by NAI as a result of the new cost assignment approach.

4.

To determine

Prepare a forecast of the cumulative dollar impact over a three year period from 20X1 through 20X3 of Person K’s recommended change for allocating material handling department costs to the Government contracts unit.

5.a.

To determine

Discuss the reason for Person K has an ethical conflict related to the standards of ethical conduct for management accountants.

b.

To determine

Identify the several steps that Person L could take to resolve the ethical conflict.

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Chapter 5 Solutions

MANAGERIAL ACCOUNTING-CUSTOM EBOOK>I<

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