MF Company produces two products: Direct labor hour / unit Units produced Direct material Direct labor...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
MF Company produces two products: Direct labor hour / unit Units produced Direct material Direct labor wage rate Additional information: Activity cost pool Cost Driver No. of set-ups Machine hours Overhead cost Direct labor hours. Milk 0.4 hour 10,000 L.E.16 L.E.7/hour L.E.32,000 Milk 50 40,000 L.E.9 L.E.7/hour Machine set-up Machining Assembly Required: 1- Allocate manufacturing overhead cost using the traditional approach using the direct labor hours as the cost driver. 2- Allocate manufacturing overhead cost using the Activity Based Costing (ABC) approach. 3- Compute the product cost / unit under both approaches and comment on the results. Products Juice Juice 0.2 hour 150 L.E.100.000 1,500 1,000 Total 200 2,500 L.E.468,000 4,000 8,000 12,000 MF Company produces two products: Direct labor hour / unit Units produced Direct material Direct labor wage rate Additional information: Activity cost pool Cost Driver No. of set-ups Machine hours Overhead cost Direct labor hours. Milk 0.4 hour 10,000 L.E.16 L.E.7/hour L.E.32,000 Milk 50 40,000 L.E.9 L.E.7/hour Machine set-up Machining Assembly Required: 1- Allocate manufacturing overhead cost using the traditional approach using the direct labor hours as the cost driver. 2- Allocate manufacturing overhead cost using the Activity Based Costing (ABC) approach. 3- Compute the product cost / unit under both approaches and comment on the results. Products Juice Juice 0.2 hour 150 L.E.100.000 1,500 1,000 Total 200 2,500 L.E.468,000 4,000 8,000 12,000
Expert Answer:
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
Posted Date:
Students also viewed these accounting questions
-
The Hampshire Company manufactures umbrellas that sell for $12.50 each. In 2014, the company made and sold 60,000 umbrellas. The company had fixed manufacturing costs of $216,000. It also had fixed...
-
Printware Products Inc. produces printers for wholesale distributors. It has just completed packaging an order from Hawes Company for 450 printers. Before the order is shipped, the controller wants...
-
Kall Company produces cellular phones. It has just completed an order for 10,000 phones placed by Connect, Ltd. Kall recently shifted to an activity-based costing system, and its controller is...
-
The company of choice is APPLE INC (AAPL). Brief description of the company (one paragraph, briefly summarizing the companys business) Company history (origin, major developments, etc.) Organization...
-
The stock in Dow Jones & Co., Inc. (the publisher of the Wall Street Journal) has a book value (shareholders equity per share) of approximately $6. Prior to a buyout offer, the stock had been trading...
-
IDX Tech is looking to expand its investment in advanced security systems. The project will be financed with equity. You are trying to assess the value of the investment, and must estimate its cost...
-
On June 14, 1988, Thomas John Heck Jr. executed a note promising to pay Paul D. Heck \($51,000\) at 7 percent interest compounded annually. The note contains the following payment terms: Perpetual 90...
-
Cost of Land vs. BuildingEthics Tones Company purchased a warehouse in a downtown district where land values are rapidly increasing. Gerald Carter, controller, and Wilma Ankara, financial vice...
-
What are some practical advantages to using a star schema data model over a relational model in healthcare?
-
Selected accounts from Murray's Furniture Store's adjusted trial balance as of June 30, 2014, the end of the fiscal year, follow. Required 1. Prepare a multistep income statement for Murray's....
-
a. Find the center of mass for a quarter of a uniform sphere in terms of the outside radius of the sphere, R . (Figure 1) b. Find the centroid for an area defined by the equations y=2x+4 and...
-
Can intersectionality be applied beyond its original focus on gender and race to illuminate the intersecting dimensions of power and inequality in areas such as disability, age, nationality, and...
-
How does the concept of intersectionality, as developed by Kimberl Crenshaw, challenge traditional understandings of identity and social categorization by highlighting the interconnectedness and...
-
What are three different types of written interdepartmental or intradepartmental?
-
You are a computer Salesperson The standard price for your computers is $800 dollars but you can still make a profit if you sell them for $600. Lately, your boss has been angry at you for selling...
-
To what extent does intersectional scholarship inform policy-making and advocacy efforts aimed at addressing social disparities and promoting equity and justice for marginalized communities ?
-
Find the present value of $40,000 due in 4 years at the given rate of interest 8%/year compounded monthly. A. The present value is $28,948.67. B. The present value is $29,433.94. C. The present value...
-
A genetically engineered strain of Escherichia coli (E. coli) is used to synthesize human insulin for people suffering from type I diabetes mellitus. In the following simplified reaction scheme,...
-
What is the effect on a firms breakeven point of a lower income tax rate?
-
The universitys Wildcat Lair caters to students and serves sandwiches and beverages. It has been reporting losses in past months. In July, for example, the loss was $5,000. The Lair purchases...
-
Humphrey Manufacturing produces automobile parts and batteries. All direct materials are added at the beginning of production, and conversion costs are incurred evenly throughout production. The...
-
Please list possible definitions of the term embedded system!
-
How would you define the term cyber-physical system (CPS)? Do you see any difference between the terms embedded systems and cyber-physical systems?
-
What is the Internet of Things (IoT)?
Study smarter with the SolutionInn App