52) Managerial Financial Accounting Assignments P11-12 Solution

52) Managerial Financial Accounting Assignments P11-12 Solution

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
P11-12 Setting Standards and Assigning Responsibility for Variances [LO 1] Recycled Plastics, Inc. manufactures a plastic dimensional lumber product from recycled plastic milk jugs. The company purchases consumer-recycled milk jugs in 700-pound bales and then shreds them into small pieces in its grinding department. Once ground, the plastic pieces are mixed in a hopper and extruded into shaped boards in the extrusion department. When the boards are cooled, they are used much as wood lumber would be used to build picnic tables and park benches in the fabrication department. Recycled Plastics, Inc. has grown from a small 5-person operation to a company employing
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: more than 100 people. The company also contains a sales department, an accounting department, an administration department, and a purchasing department. The president and owner of the company, Alan Roberts, would like to institute a standard cost system; at this point, he has been setting prices based on his rough pen-and-paper estimates of costs. What standards could be set within each of the three production departments of the company? How should standards be set? Who should be involved in setting the standards? What benefits might Recycled Plastics, Inc. receive from adopting a standard costing system? What disadvantage...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern