1. (10 points) Akita Corp. manufactures the R99 product. Recently R99 profits have been declining and management...
Question:
1. (10 points) Akita Corp. manufactures the R99 product. Recently R99 profits have been declining and management wants to understand why. Financial data for the R99 product follows: Sales Price $ 80.00 / unit Direct materials 24.00 / unit Direct labor 16.00 / unit Direct labor hours 100 hrs. Machine Ops: machine hours 400 hrs. Set-ups: Number of Set-ups 240 Units produced and sold 1,500 Job Costing: Allocation Rate = $150 / Direct Labor Hour. ABC: Allocation Rates = Machine Ops ($60/Machine hour) and (Setups = $25 per set-up). a. Using the data above complete the table below using amounts as Per Unit comparing Job Costing vs. ABC. Report all amounts as Per Unit Job Costing ABC Sales Direct Materials Direct Labor Allocated Overhead Total Cost Operating Income b. Which Operating Income Per Unit amount from above is more ac
Accounting for Decision Making and Control
ISBN: 978-0078025747
8th edition
Authors: Jerold Zimmerman