a. Chapter 17, Problems 2 & 3 b. Chapter 18, Problems 1 & 4

a. Chapter 17, Problems 2 & 3 b. Chapter 18, Problems 1...

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MHughley WS2 A4 Cases 17-1 and 18-2 Cases a. Semi-variable cost allocations- since semi variable cost allocations are based upon direct labor hours, a better assessment would be to calculate the hours of each employee and then average the number of hours instead of making the assumption that each employee works the same number of hours per week. I also think that the direct labor work of the employees should not be divided by the entire dealership but for that department only or that department and the employees who contribute to that department, this would solve the issue of the under allocated overhead. I agree with the consultant that the accounting system should be changed to more accurately reflect the department’s use of the overall dealerships resources. Maybe a job costing record should be created to show each allocation of resources. b. The body shop would have to increase prices in order to become more profitable. The revised profit to sales is .1% which is lower than the no. 3 and 5 dealer body
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a. Chapter 17, Problems 2 & 3 b. Chapter 18, Problems 1...

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