R&A WEEK 4 -...

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Case 3A-3 Ethics Predetermined OH rate and Capacity Requirements 1 TRADITIONAL APPROACH ACTUAL TTL MANF. OH COST INCURRED 4,000,000 MANF. OH  APPLIED 4,000,000 OVERHEAD UNDER OR OVERAPPLIED 0 VAULT HARD DRIVES INC INCOME STATEMENT-TRADITIONAL APPROACH REVENUE (150,000 x $60 PER UNIT) COST OF GOODS SOLD VARIABLE MANUFACTURING (150,000 X $15 PER UNIT) MANF. OVERHEAD APPLIED (150,000 X $25 PER UNIT) GROSS MARGIN ADMINISTRATIVE AND SELLING EXPENSES NET OPERATING INCOME NEW APPROACH: VAULT HARD DRIVES, INC INCOME STATEMENT: NEW APPROACH REVENUES (150,000 X $60 PER UNIT COST OF GOODS SOLD: VARIABLE MANUF.  (150,000 X $15 PER UNIT) $2,250,000  MANUF. OVERHEAD APPLIED(150,000 X $20 PER UNIT) 3,000,000 GROSS MARGIN COST OF UNUSED CAPACITY ADMINISTRATIVE AND SELLING EXPENSES NET OPERATING INCOME 2 TRADITIONAL APPROACH: UNDER THIS APPROACH THE NET OPERATING INCOME CAN BE INCREASED BY IN IN OVERAPPLIED OH WHICH WILL BE DEDUCTED FROM THE COST OF GOODS SO ADDITIONAL NOI REQUIRED TO REACH TARGET  NOI (500,000-300,000)
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This note was uploaded on 03/22/2011 for the course ACCT 581 taught by Professor Dontknow during the Spring '11 term at University of Phoenix.

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R&A WEEK 4 -...

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