This handout problem expands upon problem 8-23 in the textbook.
The standard costs for the Singapore division are as follows:
Variable Manufacturing Overhead
Fixed Manufacturing Overhead
Standard Cost per unit
Alternative Assignment in lieu of Class on Sept. 14 and Sept. 16.
This Assignment is due at the beginning of class on Monday, Sept. 19th.
Please upload your Excel spreadsheet to the 'ch7 project' folder in our course D2L dropbox.
Also, please bring a hard
Research Case 1
Under topic Assets360 Property, Plant, and Equipment
A long-lived asset (disposal group) to be sold shall be classified as held for sale in
the period in which all of the following criteria are met:
1. Management, havin
The Job Shop produces a variety of products using the equipment in their factory. They
use job order costing and apply manufacturing overhead on the basis of machine hours
worked using a predetermined overhead rate.
During 20_8, The Job Shop expects
Molded Products produces a variety of products by molding
plastic. Direct Material is added at the start of the
production process; direct labor is added uniformly
throughout the production process.
The standard direct material and direct labor cost
1. DM Efficiency Variance to be allocated to WIP, FG and COGS based on Std DM cost (original material level):
Std DM cost
JE to close the DM Effic
Quality Products Company produces their products in two
producing departments, a machining department and an
assembly department. To support their production
activities, they have a janitorial department, a personnel
department, an employee cafeter
HOP#7 Key 1. Allocating joint costs to the two joint products first - using the production method - where product X inventory is recognized at the time of production; Product X would be inventoried for its NRV. determine NRV of byproduct (X): Sales Value
Caldwell Company processes 600,000 pounds of an ore in Department 1 at a cost of $800,000 to
yield the following:
50,000 pounds of product L,
300,000 pounds of product W, and
100,000 pounds of product X.
Product L is processed further in Department
Select T-Accts to show what amounts were posted from the JE's recorded:
JE's for 20X8
1. WIP Control
2. WIP Control
17-1 Industries using process costing in their manufacturing area include chemical processing,
oil refining, pharmaceuticals, plastics, brick and tile manufacturing, semiconductor chips,
beverages, and breakfast cereals.
Research Case 2
Under title Broad Transactions 845 Nonmonetary Transactions
An exchange (or exchange transaction) is a reciprocal transfer between two
entities that results in one of the entity's acquiring assets or service
Depreciation Schedule for Single Asset
$266,000.00 Useful Life (year)
$26,000.00 Useful Life (specific depreciation00,000
Units of Production
the best cost formula is as follow:
Overhead Costs = -197719.29 + 91.19(DL hours) + 4.37(DM costs)
First test the assumption of regression.
For the DL hours, it shows as follows:
It appears approximately the same dispersion of points above and below t
Janitorial = 50,000 + 2/111*Technical Support + 7/90*Personnel
Technical Support = 90,000 + 3/195*Janitorial + 3/90*Personnel
Personnel = 150,000 + 7/195*Janitorial + 9/111*Technical Support
b. Determine total costs of support departments
Exam 3 Regression - Spring 2011
Meyer Grove Company has large overhead costs relative to its direct material and direct labor costs. Because of the
significance of these overhead costs, management is trying to better understand what is driving them.
ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT
Broad averaging (or peanut-butter costing) describes a costing approach that uses broad
averages for assigning (or spreading, as in spreading peanut butter) the cost of resources
FLEXIBLE BUDGETS, DIRECT-COST VARIANCES,
AND MANAGEMENT CONTROL
Management by exception is the practice of concentrating on areas not operating as
expected and giving less attention to areas operating as expected. Variance analysis helps
FLEXIBLE BUDGETS, OVERHEAD COST VARIANCES, AND
Effective planning of variable overhead costs involves:
1. Planning to undertake only those variable overhead activities that add value for
customers using the product or serv
DETERMINING HOW COSTS BEHAVE
The two assumptions are
Variations in the level of a single activity (the cost driver) explain the variations in the
related total costs.
Cost behavior is approximated by a linear cost funct
STRATEGY, BALANCED SCORECARD, AND
STRATEGIC PROFITABILITY ANALYSIS
13-1 Strategy specifies how an organization matches its own capabilities with the
opportunities in the marketplace to accomplish its objectives.
13-2 The five key forces to cons
ALLOCATION OF SUPPORT-DEPARTMENT COSTS,
COMMON COSTS, AND REVENUES
15-1 The single-rate (cost-allocation) method makes no distinction between fixed costs and
variable costs in the cost pool. It allocates costs in each cost pool to cost objects
COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS
16-1 Exhibit 16-1 presents many examples of joint products from four different general
industries. These include:
IndustrySeparable Products at the Splitoff Point