MGMR ACCT F/MANAGERS-CONNECT 180-DAY COD
5th Edition
ISBN: 9781265951627
Author: Noreen
Publisher: MCG
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Textbook Question
Chapter 5A, Problem 5A.2E
Time-Driven Activity-Based Costing LO5—7
Refer to the data in Exercise 5A—1. In addition, assume that Saratoga Company provided the following activity data for all jobs produced during the year:
Required:
- Calculate Saratoga’s used capacity in minutes.
- Calculate Saratoga’s unused capacity in minutes.
- Calculate Saratoga’s unused capacity in number of employees. (Do not round your answer to a whole number.)
- Calculate the impact on expenses of matching capacity with demand. (Be sure to round your potential adjustment in the number of employees to a whole number.)
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Consider a company facing a demand pattern and costs as follows:
Sequential Requirements
Number
(units)
1
20
2
40
3
110
4
120
60
30
20
30
80
120
130
40
800
Month
January
February
March
April
May
June
July
August
September
October
November
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At
ht
5
6
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9
10
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$25.00
$ 0.20
a. Construct a replenishment schedule and calculate the associated costs using the Lot for
Lot method.
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c. Repeat using the Periodic Order Quantity method.
d. Repeat using the Wagner-Whitin Algorithm. (Note: Students are required to solve this
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$ 110,000
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E4-14 Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and
residential customers. The following information relates to its budgeted operations for the current year.
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Direct labor costs
150,000
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Supervision
$ 30,000
100,000
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Revenues
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The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why
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closer look at the overhead costs assigned to the two product lines to determine whether a more accurate
product…
Chapter 5A Solutions
MGMR ACCT F/MANAGERS-CONNECT 180-DAY COD
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