ACC606_fcordero_week3_1

ACC606_fcordero_week3_1 - a Chapter 5 p 204 Complete...

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a) Chapter 5, p. 204 – Complete exercise 5-29 b) Chapter 5, p. 213 – Complete problem 5-50 c) Chapter 5, p. 215 – Complete problem 5-53 1 Direct material 210.00 Direct labor 60.00 Machine setups . ............................................................................................................................. Raw material . ................................................................................................................................. Hazardous materials . ..................................................................................................................... Inspections . ................................................................................................................................... Machine hours . .............................................................................................................................. d) Chapter 5, p. 217 – Complete problem 5-55 1 a. GSCC's predetermined overhead rate, using direct-lab Overhead rate b. The full product costs and selling prices of one pound Jamaican Direct material 2.90 Direct labor 0.40 4.00 Full product cost 7.30 Markup (30%) 2.19 Selling price 9.49 2 The new product cost, under an activity-based costing approach, is $11.06 per poun Activity Cost Driver Purchasing Purchase orders Material handling Setups Quality control Batches Overhead (.40 × $10)
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Roasting Roasting hours Blending Blending hours Packaging Packaging hours Jamaican Coffee Standard cost per pound: Direct material 2.90 Direct labor 0.40 2.00 4.80 0.80 0.10 0.05 0.01 Total cost 11.06 *Budgeted sales ÷ purchase order size 2,000 lbs. ÷ 500 lbs. = 4.00 Colombian Coffee Standard cost per pound: Direct material 3.90 Direct labor 0.40 0.02 0.12 0.02 0.10 0.05 0.01 Total cost 4.62 *Budgeted sales ÷ purchase order size 100,000 lbs. ÷ 50,000 lbs. = 2.00 Purchasing (4 orders* × $1,000/2,000 lb.) Material handling (12 setups × $800/2,000 lb.) Quality control (4 batches
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ACC606_fcordero_week3_1 - a Chapter 5 p 204 Complete...

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