G$-$ACCT$-310-$Assignment$-2$

$4$ of $6$

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It is recommended that you use the UG$-$ACCT$-310-$Assignment$-2-$Exhibits.xIsx Excel file $($located in the Table of Contents $$ Learning Modules $$ Week $3$ area of D$2$L$)$ as a starting point to perform your calculations and respond to the questions below.

Part A $(14$ pts$)$

Compare the former and new method allocations for the following products:

a$.$ The cost of sport sunglasses

b$.$ The value of spare parts added to inventory each month

c$.$ The cost of work done for other divisions

Briefly explain how$/$why the differences in cost calculated in Part A$\mathrm{.}1.$ arise.

Are the differences in cost calculated in Part A$\mathrm{.}1.$ significant? Calculate the percent difference for each product by dividing the change in cost by the former cost. Round to the nearest whole percent. Use your judgment and discuss whether the change is significant.

Part B $(11$ pts$)$

Respond to questions $4$ & $5$ separately from the memo in question $6.$

$4.$ Is this new system likely to help with cost control as Mr$.$ Jacobson desires? Please explain.

$5.$ Explain how the new system might impact the following:

a$.$ Product pricing

b$.$ Inventory valuation

c$.$ Efficient allocation of work among departments$/$divisions

$6.$ Prepare a brief $($no more than $1$ page$)$ memo allaying the fears of the other division managers and promoting the benefits of the proposed system. Please be sure that you use a proper memo format.

Please submit your calculations for Part A in an Excel $(.$x$|$sx$)$ file and your Part B explanations in a Word document. Important: Scanned, handwritten solutions or other formats will not be permitted unless approvedEhiset $1$ : Fonner Method

Exhibit $2-$ New Method

Saguaro Sunglasses

Assigning Direct Labor Cost and Manufacturing Overhead to Jobs

Saguaro Sunglasses

Assigning Direct Labor Cost and Manufacturing Overhead to Jobs

$\backslash$table$[[$April$],[$Department$,$Total Hours,Hour,$\backslash$table$[[$Overhead Charge$],[$per hour$]],\backslash$table$[[$Total Cont pei$],[$Hour$]]],[$Glass Cutting,$1,000,$$$,15\mathrm{.}00,$$$,14\mathrm{.}00,$$$,28\mathrm{.}00],[$Frames$,1,500,$$$,10\mathrm{.}00,$$$,8\mathrm{.}00,$$$,18\mathrm{.}00],[$Grinding and Machining,$2,000,$$$,17\mathrm{.}50,$$$,33\mathrm{.}50,$$$,$$$2\mathrm{.}00$