Answer to two decimal places 096

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answer to two decimal places.$0.96 (15x$60)+(5x$50)=$1,150/1,200=.9583 roundedto 0.96.Disadvantages of using activity-based costing includes all of the following:uncertaintywith decisions and cost to implement.Activities causing overhead include all of the following : (1)unit-levelactivities,(2)batch-level activities,(3)product-level activities,and (4)facility-levelactivitiesAbatchlevel activity are those that are performed on each group of units.Activities which are focused at the unit level are calledunit level activities.Facilitylevel activities are focused on the whole facility and are not caused by units.An activity which is related to the facility capacity as a whole is afacility level activity.A disadvantage of using activity-based costing is thatcollecting and analyzing costdata is expensive.An activity which focuses on product lines and are not affected by number of units is aproduct level activity.
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Manufacturing which focuses on eliminating waste and satisfying customers is known aslean manufacturing.List the four stages of activity-based costing in the correct order.1.Identify the activities and their costs.2.Trace overhead costs to activity cost pools.3.Compute overhead allocation rates for each activity.4.Use the activity overhead rates to assign costs to products.Questions:1.The production department in a process manufacturing system completed 429,000 units of product andtransferred them to finished goods during a recent period. Of these units, 89,000 were in process at thebeginning of the period. The other 340,000 units were started and completed during the period. At periodend, 38,000 units were in process.Prepare the department’s equivalent units of production with respect to direct materials under each ofthree separate assumptions using the weighted average method for process costing.Equivalent Units of Production (EUP)—Weighted Average Method1. All direct materials are added to products when processing begins.Units% MaterialsEUP—MaterialsGoods completed242,000100%242,000Ending work in process55,000100%55,000Total EUP297,000297,0002. Beginning inventory is 40% complete as to materials and conversion costs. Ending inventory is75% complete as to materials and conversion costs.Units% MaterialsEUP—MaterialsGoods completed242,000100%242,000Ending work in process55,00075%41,250Total EUP297,000283,2503. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs.Ending inventory is 30% complete as to materials and 60% complete as to conversion costs.Units% MaterialsEUP—MaterialsGoods completed242,000100%242,000Ending work in process55,00030%16,500Total EUP297,000258,5002.The production department in a process manufacturing system completed 188,500 units of product andtransferred them to finished goods during a recent period. Of these units, 28,000 were in process at thebeginning of the period. The other 160,500 units were started and completed during the period. At period
end, 27,500 units were in process.

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Successful Project Management
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Chapter 7 / Exercise 2
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