Swimmingly Corp. buys raw fish, cooks and processes it, and then cans it in single-portion containers. The
Question:
Direct labor ......... $0.25
Repairs .......... 0.05
Maintenance ........ 0.30
Indirect labor ........ 0.05
Power ........... 0.10
For 2010, Swimmingly Corp. purchased 2.5 million pounds of fish and canned 1.5 million pounds. There were no beginning or ending inventories of raw, in-process, or canned fish for the year. Actual 2010 costs were:
Direct labor ........ $300,000
Repairs ........... 80,000
Maintenance ......... 325,000
Indirect labor ........ 77,500
Power .......... 157,500
a. Prepare a responsibility report for Rigera for 2010.
b. As his supervisor, evaluate Rigera’s performance based on the report in (a).
c. Rigera believes his 2010 performance is so good that he should be considered for immediate promotion to vice president of production operations. Do you agree? Discuss the rationale for your answer.
d. Do you believe that all of the costs shown on Rigera’s responsibility report are truly under his control? Discuss the rationale for your answer.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
Question Posted: