Answers- chapter 5 - Managerial Accounting (7th Indian...

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Managerial Accounting (7 th Indian Edition) Answers to Select Problems of Chapter 5 Exercises 5-20 i) Material-handling cost per lens: $ 1000 ii) Material-handling cost per mirror = $1,000. iii) Material-handling cost per lens: $500 iv ) Material-handling cost per mirror: $1,500 Exercises 5-21 1 a) Quality-control costs assigned to the Satin Sheen line under the traditional system: = $3,988 (rounded) b) Quality-control costs assigned to the Satin Sheen line under activity-based costing: Total quality-control costs assigned: $ 4,513 2 ) The traditional product-costing system = $525 ($4,513 – $3,988). Exercises 5-22 There is no single correct answer to this exercise. There are many reasonable solutions. i) Cost pool 1: Total: 2,980,000 yen Cost driver: raw-material cost ii) Cost pool 2: Total: 1,700,000 yen Cost driver: number of units produced iii) Cost pool 3: Total: 40,000 yen Cost driver: number of production runs. iv) Cost pool 4: Total : 610,000 yen Cost driver: number of parts in a product. v) Cost pool 5: Total: 1,550,000 yen Cost driver: for costs allocated to support departments, square footage; for costs assigned to products, number of units produced. Exercises 5-23 Cost pool 1: unit-level Cost pool 2: unit-level
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Cost pool 3: batch-level Cost pool 4: product-sustaining-level Cost pool 5: facility-level Exercises 5-26 The activity of the Finger Lakes Winery may be classified as follows: U: Unit-level B: Batch-level P: Product-sustaining-level F: Facility-level Activity Classification Activity Classification (1) P (11) B (2) P (12) B
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Answers- chapter 5 - Managerial Accounting (7th Indian...

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