Exercises. Completion Statements 1. The variable overhead flexible-budget variance subdivides into which two variances? Spending Variance and efficiency Variance. 2. To compute the budgeted variable overhead cost rate for a manufacturing company divide budgeted variable overhead costs by the budgeted quantity of the Cost allocation base. 3. To compute the budgeted fixed overhead cost rate for a manufacturing company‚ divide budgeted fixed overhead costs by the Budgeted total quantity of cost-allocation
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Assignment Print View 10/4/12 9:51 PM Score: 48 out of 60 points (80%) 9. award: 2 out of 2.00 points MC Qu. 60 Which of the following best describes the re... Which of the following best describes the relationship between revenue and retained earnings? Revenue increases net income‚ which in turn increases retained earnings. Revenue represents a cash receipt; retained earnings is an element of stockholders’ equity. Revenue represents the price of goods sold or services rendered;
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Problem 1 The Commonwealth Company uses a job-order cost system and applies manufacturing overhead cost to jobs using a predetermined overhead rate basedon the cost of materials used in production. At the beginning of the year‚ the following estimates were made as a basis for computing the predetermined overhead rate: manufacturing overhead cost‚$186‚000; direct materials cost‚$155‚000. The following transactions took place during the year (all purchases and services were acquired on account): a
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2011 (10) Direct materials used $210 Direct manufacturing labour costs 80 Indirect manufacturing costs: Plant supplies used 12 Property taxes on plant 2 Plant utilities 10 Indirect manufacturing labour costs 40 Depreciation––plant and equipment 18 Miscellaneous manufacturing overhead costs 20 102 Manufacturing costs incurred during 2011 392 Add beginning work-in-process inventory‚ 1 Jan. 2011 20 Total manufacturing costs to account for 412 Deduct ending work-in-process
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Cost of wood used in display at national trade show. ____ 4) Depreciation of the wood used in the manufacturing plant. ____ 5) Salary of the scientists attempting to find another source of writing material. ____ 6) Cost of customer order forms. ____ 7) Depreciation of delivery trucks. 2) Elm Table Company manufactures tables. The company uses a budgeted indirect-cost rate for its manufacturing operations‚ and in 19X9 allocated the following amounts to the work-in process inventory‚ finished-goods
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of a manufacturing company outsourcing would be Dell buying some of its computer components from another manufacturer in order to save on production costs. Alternatively‚ businesses may decide to outsource book-keeping duties to independent accounting firms‚ as it may be cheaper than retaining an in-house accountant. Outsourcing in Manufacturing According to an article by Kenneth Hamlett‚ when the term outsourcing in regard to a manufacturing company
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form of unprocessed coffee beans. However‚ the company’s predominately automated roasting‚ blending‚ and packing processes require a substantial amount of manufacturing overhead. Some of IBI’s coffees are very popular and sell in large volumes‚ while a few of the newer blends sell in very low volumes. IBI prices its coffees at manufacturing cost plus a markup of 25% with some adjustments made to keep the company prices competitive. IBI has just completed a year of operations and the controller
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valves. Over the year‚ the company has extended their product range to pumps and flow controllers. The main learning outcome from analyzing the case study is manufacturing overhead cost allocation. Exhibit 2 in the case study shows pumps has a highest manufacturing overhead cost compare to valves and flow controller. The common overhead cost drivers in the production are machine hours‚ production runs and hours of engineering work. The key issue in this case study is the gross margin on pump sales
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Ryerson Ltd. 1 Learning Objectives 1. Discuss the role of product and service costing in manufacturing and nonmanufacturing firms. 2. Diagram and explain the flow of costs through the manufacturing accounts used in product costing. 3. Distinguish between job-order costing and process costing. © 2010 McGraw-Hill Ryerson Ltd. 2 Learning Objectives (con’d) 4. Compute a predetermined overhead rate‚ and explain its use in job-order costing for job-shop and batch-production environments
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CHAPTER I BACKGROUND OF THE PROJECT Introduction Shoes have the hardest job of any apparel. They travel between your weight and the ground. Shoes are often taken for granted‚ people only noticed their shoes when it’s all worn up‚ dirty‚ and needed to be replaced. Taking care of your shoes is not just about making your shoes look good‚ which would be reason enough to take care of them. It’s also about preserving and adding to the life of your shoes. Whether you spend a lot on your shoes‚ or don’t
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