Explain why when a company is developing a cost for their products or service they should...
Explain why when a company is developing a cost for their products or service they should use the activity base costing method vs the traditional costing method?
Homework Answers
When a company is developing a cost for their products or service they should use the activity base costing method because traditional costing method is less accurate than activity base costing,and typically assigns overhead costs to products based on an arbitrary average rate. Activity base costing is more accurate than traditional costing.This is because they provide a more precise breakdown of indirect costs.This method first assigns indirect costs to activities and then assigns the cost to products based on the products usage of the activities.
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Explain why when a company is developing a cost for their
products or service they should...
Mer (c) Explain why overhead cost cost to produce one unit of each product. Plain why...
Mer (c) Explain why overhead cost cost to produce one unit of each product. Plain why overhead cost shifted from the high-volume product (product B) he low volume product (product A) under activity based costing. A company has been applying factory overhead on the basis of direct labour hours using an overhead recovery rate of $60.00 per direct labour hour. One of their employees, a trainee accountant, has suggested that the company should change to activity based costing as it...
based cost assignments Explain why the trial 0 3 .106-4 he Path PROBLEM 6-17 Comparing fra...
based cost assignments Explain why the trial 0 3 .106-4 he Path PROBLEM 6-17 Comparing fra 17 Comparing Traditional and Activity-Based Product Margins (LOG-1, LO y Mountain Corporation makes two types of hiking boots Xtreme and the concerning these two product lines appear below Xtreme Selling price per unit ....... Direct materials per unit..... Direct labor per unit ...... Direct labor-hours per unit.... Estimated annual production and sales .. $140.00 $72.00 $24.00 2.0 DLHS 20,000 units Partidade $99.00 $53.00 $12.00...
please choose a company that uses Job costing and process costing and explain the benefits of...
please choose a company that uses Job costing and process costing
and explain the benefits of each.
Job Costing vs. Process Costing: Example: Select a company of your choice and explain when they migh use job costing and when they might use process costing. Cite your work and include sufficient detail. Service Industry Costing: Differences: Explain why costing methods used in the service industry are different from those used in the manufacturing or merchandising industries. Service Industry Costing: Benefits: Select...
Which product/service type should be used when setting up products sold by a company that uses...
Which product/service type should be used when setting up products sold by a company that uses a perpetual inventory system? Select one: A. Product B. Non-inventory part C. Service D. Inventory part When preparing a bank deposit which of the following is a best practice? Select one: a. Group all customer payments with the same payment method together in one deposit b. Group customer payments with the payment method of checks and credit card payments in one deposit and group...
: Different costing methods provide companies with different options for categorizing and calculating costs. Managers and...
: Different costing methods provide companies with different options for categorizing and calculating costs. Managers and cost accountants should understand the differences between costing methods so that they can choose and properly implement the method that best suits their needs for decision making. For this short paper, you will compare the characteristics of job costing and process costing methods and give examples of when and why each might be used. You will also address the use and benefits of costing...
Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing...
Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing system. The following are the activities, budgeted total cost and cost drivers per activity for the year 20x9: Activity Budgeted Cost Cost Base Cost Base Volume Assembly $877831 # of DL hours 37167 Inspection $668988 # of units 20830 Shipping $339555 # of batches 186 Plaid Manufacturing has budgeted to produce 3,000 units of M1. M1 is manufactured in batches of 80 units and...
Please think about a real life manufacturing or service company (big or small) that would be...
Please think about a real life manufacturing or service company (big or small) that would be a good fit for the Job Order Costing method. Explain why you feel that your company would be a good candidate for job order costing (hint: look at the criteria). Also, give at least one example each for direct labor, direct material and manufacturing overhead cost in your company. Finally, explain what allocation base you would suggest for the calculation of the predetermined overhead...
- Thingvold, Inc., manufactures and sells two products Product W8 and Product concerning the expected production...
- Thingvold, Inc., manufactures and sells two products Product W8 and Product concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below Direct Labor Expected Hours Per Total Direct Production Unit Labor-Hours Product W8 500 7.0 3,00 Product TO 800 6,0 4.800 Total direct labor-hours 8,300 The direct labor rate is $24.80 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost...
Problem 1: Dandy Desks Company manufactures two products: a standing desk and a portable desk. The...
Problem 1: Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Manufacturing overhead is currently assigned to the products on the basis of direct labor hours. The company has gathered some activity information and is interested in the differences between its present costing method and activity-based costing. All overhead...
Written please Dandy Desks Company manufactures two products: a standing desk and a portable desk. The...
Written please
Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Activity Pool Overhead Costs Total Driver Usage Setup $768,000 9,600 setups Materials purchasing $330.000 8.250 purchase orders Machining/fabricating $408,000 81,600 machine hours Total overhead costs $1,506,000 Standing Desks Portable Desks Number of Units Produced 120,000 30,000 Direct materials...
Mer (c) Explain why overhead cost cost to produce one unit of each product. Plain why overhead cost shifted from the high-volume product (product B) he low volume product (product A) under activity based costing. A company has been applying factory overhead on the basis of direct labour hours using an overhead recovery rate of $60.00 per direct labour hour. One of their employees, a trainee accountant, has suggested that the company should change to activity based costing as it...
based cost assignments Explain why the trial 0 3 .106-4 he Path PROBLEM 6-17 Comparing fra 17 Comparing Traditional and Activity-Based Product Margins (LOG-1, LO y Mountain Corporation makes two types of hiking boots Xtreme and the concerning these two product lines appear below Xtreme Selling price per unit ....... Direct materials per unit..... Direct labor per unit ...... Direct labor-hours per unit.... Estimated annual production and sales .. $140.00 $72.00 $24.00 2.0 DLHS 20,000 units Partidade $99.00 $53.00 $12.00...
please choose a company that uses Job costing and process costing
and explain the benefits of each.
Job Costing vs. Process Costing: Example: Select a company of your choice and explain when they migh use job costing and when they might use process costing. Cite your work and include sufficient detail. Service Industry Costing: Differences: Explain why costing methods used in the service industry are different from those used in the manufacturing or merchandising industries. Service Industry Costing: Benefits: Select...
- Thingvold, Inc., manufactures and sells two products Product W8 and Product concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below Direct Labor Expected Hours Per Total Direct Production Unit Labor-Hours Product W8 500 7.0 3,00 Product TO 800 6,0 4.800 Total direct labor-hours 8,300 The direct labor rate is $24.80 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost...
Problem 1: Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Manufacturing overhead is currently assigned to the products on the basis of direct labor hours. The company has gathered some activity information and is interested in the differences between its present costing method and activity-based costing. All overhead...
Written please
Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Activity Pool Overhead Costs Total Driver Usage Setup $768,000 9,600 setups Materials purchasing $330.000 8.250 purchase orders Machining/fabricating $408,000 81,600 machine hours Total overhead costs $1,506,000 Standing Desks Portable Desks Number of Units Produced 120,000 30,000 Direct materials...
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