5e sol12-17 - Enter the appropriate numbers in the shaded...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Cost Management Hansen and Mowen Prob 12-17 Name: SOLUTION Enter the appropriate numbers in the shaded cells in columns F and H. 1) Nonvalue-added usage and costs (2006) Molding Engineering Standard price (SP) $15 $35 Actual quantity (AQ) 2,700,000 144,000 Standard quantity (SQ) 2,160,000 86,400 Nonvalue-added usage (AQ - SQ) 540,000 57,600 Nonvalue-added cost [(AQ - SQ)SP] 8,100,000 2,016,000 Enter the appropriate numbers in the shaded cells in columns B, D, F, and H. SP x AQ SP x AU $35 x 144,000 $35 x 138,000 $5,040,000 $4,830,000 $210,000 F Unused Capacity Variance
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Enter the appropriate numbers in the shaded cells in columns D, F, and I. 2) Kaizen standards for 2007: Molding: SQ = SQ for 2006 + ( 1 - reduction ) x (AQ - SQ) SQ = 2,160,000 + ( 0.70 ) x 540,000 SQ = 2,538,000 pounds Engineering SQ SQ for 2006 + ( 1 - reduction ) x (AQ - SQ) SQ = 86,400 + ( 0.70 ) x 57,600 SQ = 126,720 engineering hours 3) AQ SQ AQ - SQ SP(AQ - SQ) U/F Molding 1,169,600 1,104,000 65,600 $656,000 U Engineering 70,800 79,872 (9,072) ($272,160) F...
View Full Document

This note was uploaded on 11/05/2009 for the course BUS ACC202 taught by Professor Achillies during the Spring '09 term at NC Wesleyan.

Ask a homework question - tutors are online