To write off
1. Make a list of the problems facing Pegasus Research Institute. Prioritize them in order of
5. Management was late for a meeting, is this usual structure?
1. Pegasus has cash flow problems, and may
Materials Handling Rate
Fee Loaded Labor
Act Dir Labor
Act Dir Materials
Act Dir Labor
Total cost per unit
Loaded Labor Tot
Budgeted Units (base for calculating fixed overhead rate) 80,000.00
Units produced 80,000.00
Units Sold 90,000.00
Fixed overhead $ 850,000.00
Fixed administrative and selling expense $300,000.00
Variable administrative and selling expense $6
Make or Buy
Variable Administrative and marteting expense
Fixed administrative and selling expense
Total Absorption Cost
Cost to Purchase Outside
Savings Purchase Outside
Data On Existing Customer Sales
Price to Existing Customers
$65.00 per unit
$22.43 per unit
$29.25 per unit
Given - NO BWIP
10,000 chips started
Direct Materials 720,000
Conversion Costs (CC) 760,000
Completed and transferred out
50000 units at $10/unit = $50000
Joint Cost $50000
10000 units at $12/unit = $120000
5000 x 2 = $10000
Total Joint Cost
Less NRV Byproduct
Joint costs to be allocated
@ 011 (booklstatic)
[hum mamaelluvh-moll'u dhvull inana-nl man-rm"
j a uanagennennaaanmnng memm .m nepona nannset Ind rulfllamll ltlonnainn mmepannanqenannata manganaanm tn. gana an. mm. mummmgmeleme; llym an! napanarnnnnaal ann rum-mntnnannnnpnnenenn
The representative cost drivers in the light oolumn ofthlli table are randomized so they do not match the list of functions in the lett column.
0 cfw_Click lhe icon to view rile table.)
1. Match each function with its representative cost driv
Chapter 10 Determining How Costs Behave
10-1 What two assumptions are frequently made when estimating a cost function?
1. Variations in the level of a single activity (the cost drive) explain the variations in the related total
2. Cost behavior is
How do managers plan for variable overhead costs?
How does the planning of fixed overhead costs differ from the planning of variable
How does standard costing differ from actual costing?
What are the factors that affect the
Chapter 5 Activity-Based Costing and Activity-Based Management
5-1 What is broad averaging, and what consequences can it have on costs?
The term peanut-butter costing describes a particular costing approach that uses broad averages for
assigning (or sprea
Chapter 17 Process Costing
17-1 Give three examples of industries that use process-costing systems.
Process costing is a method of cost calculation for businesses whose processes are consistent and
whose products are homogeneous. The process costing syste
Chapter 9 Inventory Costing and Capacity Analysis
9-1 Differences in operating income between variable costing and absorption costing are due
solely to accounting for fixed costs. Do you agree? Explain.
9-2 Why is the term direct costing a misnomer?
Chapter 11 Decision Making and Relevant Information
11-1 Outline the five-step sequence in a decision process.
1. Identify the problem and uncertainties
2. Obtain information
3. Make predictions about the future
4. Make decisions by choosing among alterna
Chapter 20: Just-In-Time and Lean Accounting
20-8 JIT purchasing has many benefits but also some risks. Do you agree? Explain briefly.
Yes. Some of the benefits are that inspection costs are less as the inventory is not in storage and there is
Single and Dual Rate Method
Joint Allocation - net realizable method use one of four method
Sell now or process furth a join product
Sell Now or Process Further Problem
Sales value at split off
Final Sales Value