Chapter 17 Homework

# Chapter 17 Homework - Nicholas Kuras Chapter 17 Q:

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Nicholas Kuras Chapter 17 Q: 1,2,3,4,5,6,7,9,10,11,13,14,17,20 | P:2A,3B 1) When labor is a significant part of total product cost, and when a high correlation exists between direct labor and changes in the amount of overhead costs 2) Advances in computerized systems and machinery have made it far easier to automate production 3) Total machine hours 4) The higher the volume, the higher the overhead that is required. 5) a) The traditional method uses a predetermined overhead rate, and applies the same amount to everything. The ABC method calculates totals based on actual usage. b) The assumption that you can easily calculate how much of each section is going to be used, and at what percentage. Without that information you cannot easily use ABC costing. 6) Estimated overhead per activity divided by expected use of cost drivers per activity 7) 1. Identify and classify major activities involved in the manufacture 2. Identify the cost driver 3. Compute the overhead rate for each cost driver

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## This note was uploaded on 08/30/2010 for the course BA 2340 taught by Professor Staff during the Fall '08 term at Michigan Technological University.

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Chapter 17 Homework - Nicholas Kuras Chapter 17 Q:

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