Midterm W2013 Sol key

C 384000 budgeteduse beginninginventory

Info iconThis preview shows page 1. Sign up to view the full content.

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

Unformatted text preview: rect materials (200 000) Direct labour (300 000) Variable overhead (150 000) Commission ($1 000 000 × 10%) (100 000) Contribution margin $250 000. Contribution margin ratio = $250 000 ÷ $1 000 000 = 25%. e) None of the above allocations. Scheduling appointments (3 × $60) $180 Packing boxes (500 × $15) 7 500 Setting up machines (20 × $50) 1 000 Total cost would be allocated $8 680. c) $384 000. Budgeted use Beginning inventory Ending inventory Beginning accounts payable Ending accounts payable $400 000 (104 000) 128 000 80 000 (120 000) $384 000. 2 Winter 2013 $2.16 4.78 $6.94. ADMS 2510 13. 14. 15. 16. 17. 18. 19. 20. Mid‐Term Examination e) Activity‐based costing is more likely to result in major differences from traditional costing systems for firms that produce just one product, rather than multiple products. If a company produces just one product, it does not matter which method is used. Activity‐based costing determines the cost drivers and then accumulates a cost pool for e...
View Full Document

This test prep was uploaded on 03/02/2014 for the course ADMS 2510 taught by Professor Beavis during the Spring '08 term at York University.

Ask a homework question - tutors are online