Homework Answers
The Company should reexamine its activities to price the product correctly. The Company should recompute its Total Activity Costs. The Total Activity Costs should not include Delivery and Administration Costs as these activities do not directly contribute to the finishing of the product at its factory place. By including these amounts in the total activity costs, the company is charging profits on these amounts also.
The Company should recalculate its price as follows:
The Company should listen carefully to its customer for its needs and expectations so that a product suiting its requirements could be produced.
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should the company rexamine
customer relations
IS ITS UPPIDUM AIP 4.12 Pricing and Activity-Based Costing...
A- using activity based costing for the allocation of operating expenses of Alberto company. Compute operating...
A- using activity based costing for the allocation of
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loss made from customer Zillow company.
B- using activity based costing for the allocation of operating
expenses of Alberto company. compute operating profit or loss made
from customer Selma Company
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EXERCISE 12A-6 Value-Based Pricing; Absorption Costing Approach to Cost-Plus Pricing L012-8, L012–10 Valmont Company has developed...
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Activity-based costing, customer profitability Samson Company operates a mail order busi- (L ness and has three...
Activity-based costing, customer profitability Samson Company operates a mail order busi- (L ness and has three major activities: order taking, packaging, and returns. Customers call into the order taking department to place their orders. It takes the order taking st fixed amount of 5 minutes to take each order plus 0.5 minutes for each item in the order. Once the order taking process is complete, the order is sent electronically to the packaging department. It takes the packaging staff a...
eBook Show Me How Calculator Print Item Allocating Selling and Administrative Expenses using Activity-Based Costing Shrute...
eBook Show Me How Calculator Print Item Allocating Selling and Administrative Expenses using Activity-Based Costing Shrute Inc. manufactures office copiers, which are sold to retailers. The price Price 1.110 per un Cost of goods sold Gross profit $420 per unit In addition, the company incurs selling and administrative expenses of $414,030. The company wishes to assign these costs to its three major retail customers. The Warehouse, Kosmo Co. and Supply Universe. These expenses are related to its three major nonmanufacturing...
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages...
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs $ 300,000 100,000 $ 400,000 Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Total Activity for the Year 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Order...
Weisgarber Corporation is conducting a time-driven activity-based costing study in its Customer Service Department. The company...
Weisgarber Corporation is conducting a time-driven
activity-based costing study in its Customer Service Department.
The company has provided the following data to aid in that
study:
Weisgarber Corporation
Customer Service Department
Data Inputs
Resource Data:
Number of employees
24
Average salary per employee
$
37,710
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
90
%
Activity Data:
Processing Orders
Resolving Queries
Processing Credit Reviews
Minutes per unit of the...
Overhead Application, Activity-Based Costing, Bid Prices Firenza Company manufactures specialty tools to customer order. Budgeted overhead...
Overhead Application, Activity-Based Costing, Bid Prices Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Purchasing $40,000 Setups 40,000 Engineering 45,000 Other 40,000 Previously, Sanjay Bhatt, Firenza Company's controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for...
Overhead Application, Activity-Based Costing, Bid Prices Firenza Company manufactures specialty tools to customer order. Budgeted overhead...
Overhead Application, Activity-Based Costing, Bid Prices Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Purchasing $35,000 Setups 40,000 Engineering 45,000 Other 40,000 Previously, Sanjay Bhatt, Firenza Company's controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for...
Overhead Application, Activity-Based Costing, Bid Prices Firenza Company manufactures specialty tools to customer order. Budgeted overhead...
Overhead Application, Activity-Based Costing, Bid Prices Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Purchasing $40,000 Setups 40,000 Engineering 45,000 Other 40,000 Previously, Sanjay Bhatt, Firenza Company's controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for...
Overhead Application, Activity-Based Costing, Bid Prices Firenza Company manufactures specialty tools to customer order. Budgeted overhead...
Overhead Application, Activity-Based Costing, Bid Prices Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Purchasing $40,000 Setups 37,500 Engineering 45,000 Other 40,000 Previously, Sanjay Bhatt, Firenza Company's controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for...
A- using activity based costing for the allocation of
operating expenses of Alberto company. Compute operating profit or
loss made from customer Zillow company.
B- using activity based costing for the allocation of operating
expenses of Alberto company. compute operating profit or loss made
from customer Selma Company
X X Brightspace New Tab 4 → XC 62 Help Center? Alberto Company buys a product called Zoom at $15 each and sells it at $20 per unit. Company management has become...
EXERCISE 12A-6 Value-Based Pricing; Absorption Costing Approach to Cost-Plus Pricing L012-8, L012–10 Valmont Company has developed a new industrial piece of equipment called the XP-200. The company is considering two methods of establishing a selling price for the XP-200—absorption cost-plus pricing and value-based pricing. Valmont's cost accounting system reports an absorption unit product cost for XP-200 of $8,400. Its markup percentage on absorption cost is 85%. The company's marketing managers have expressed concerns about the use of absorption cost-plus pricing...
Activity-based costing, customer profitability Samson Company operates a mail order busi- (L ness and has three major activities: order taking, packaging, and returns. Customers call into the order taking department to place their orders. It takes the order taking st fixed amount of 5 minutes to take each order plus 0.5 minutes for each item in the order. Once the order taking process is complete, the order is sent electronically to the packaging department. It takes the packaging staff a...
eBook Show Me How Calculator Print Item Allocating Selling and Administrative Expenses using Activity-Based Costing Shrute Inc. manufactures office copiers, which are sold to retailers. The price Price 1.110 per un Cost of goods sold Gross profit $420 per unit In addition, the company incurs selling and administrative expenses of $414,030. The company wishes to assign these costs to its three major retail customers. The Warehouse, Kosmo Co. and Supply Universe. These expenses are related to its three major nonmanufacturing...
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs $ 300,000 100,000 $ 400,000 Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Total Activity for the Year 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Order...
Weisgarber Corporation is conducting a time-driven
activity-based costing study in its Customer Service Department.
The company has provided the following data to aid in that
study:
Weisgarber Corporation
Customer Service Department
Data Inputs
Resource Data:
Number of employees
24
Average salary per employee
$
37,710
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
90
%
Activity Data:
Processing Orders
Resolving Queries
Processing Credit Reviews
Minutes per unit of the...
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