Budget: detailed plan for the future that is usually expressed in formal quantitative terms.
Business process: series of steps that are followed in order to carry out some task in a business.
Chain of command: specifies superior and subordinate r
To calculate the revised the product cost based on the Activity-Based Cost (ABC) system,
we need to calculate some activities based on the relationship with indirect labor. From the case
described, 50% of the indirect labor costs are caused by Production
1. What is the competition situation faced by Sippican?
It seems that Sippican is trying to match the price of their pumps product price in order to
compete the rest of the competitors and maintain their largest market share. However, because of
Sippican is facing the situation of products mature, declining profits and unable to decide the market
price in market.
Does Sippican need a new cost system?
Consider Sippican is a manufacturer company with multiple products, using simple cost accounti
Acoo rding Isothe activity- based costing, the manufacturing overhead should be apportioned in the
The Direct Material cost per u nit and the direct la hour cost per unit forthe I.Ialwes, pu mp5 and the
Chapter 8: Applying Excel
Exhibit 8-8: Standard Cost Card
Variable manufacturing overhead
Actual variable manufacturing overhead cost
Chapter 3: Applying Excel
Enter a formula into each of the cells marked with a ? below
Review Problem: Activity-Based Costing
Annual sales in units
Direct materials per unit
Direct labor-hours per unit