Management_Accounting_Case_1_Fall_2010 - MANAGEMENT 122...

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MANAGEMENT 122 FALL 2010 M ANAGEMENT A CCOUNTING D ANNY S. L ITT CASE ASSIGNMENT 1 Page | 1 Malibu Products Corporation molds fiberglass into automobile bodies that are replicas of the classic 1962 to 1965 Shelby Cobra. A major component of the company’s overhead is the cost of handling materials used in the molding process. It was suggested at a recent meeting of the controller and the production vice president that past data be reviewed to see if a relationship could be found between the materials-handling costs and some predictor variable. The production vice president suggested that the quantity of materials be used. The controller suggested that the dollar value of the materials be used since the dollar value would explicitly include the effects of price fluctuations. It was also noted in the discussion that some of the materials-handling costs seem to vary with the number of shipments received in a month. Data were gathered on materials-handling costs, weight of materials received, dollar value of
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This note was uploaded on 10/18/2010 for the course MGMT 122 taught by Professor Saouma during the Spring '08 term at UCLA.

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Management_Accounting_Case_1_Fall_2010 - MANAGEMENT 122...

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