Houlihan should Job-based costing system or Job costing because it is used to ascertain or determine the cost of each job separately. Job costing is mostly used by Motor repairing shops, automobile garages where cost can be easily allocated to each activity.
Each replacement.generates $85 costs which consist of Labour, materials or parts which need to be known separately for minimizing and controlling the total cost.
Q3.30: Houlihan Automotive specializes in replacing the brake pads and shoes on domestic automobiles. Each replacement...
Question 2: Ready Brakes specializes in brake repair in automobiles. The company applies overhead costs to jobs on the basis of direct labour hours. For the current year, total manufacturing overhead was expected to cost $50,000. The total expected direct labour hours were anticipated to be 8,000. The company was working on job #842, a brake pad replacement on a Volkswagen Golf. The following costs were incurred: New Brake Pads: $8 Labour: 40 minutes of employee time – wage...
Scenario Cartech Manufacturing is engaged in the production of replacement parts for automobiles. One plant specializes in the production of two parts: Part 271 and Part 342. Part 271 produces the highest volume of activity, and for many years it was the only part produced by the plant. Five years ago, Part 342 was added. Part 342 was more difficult to manufacture and required special tooling and setups. Profits increased for the first three years after the addition of the...
Automotive Products (AP) designs and produces automotive parts in 2017, actual manufacturing overheads $318,000. AP's simple costing system allocates manufacturing overhead to its three customers based on machine hours and prices its contracts based on all costs. One of its customers has regularly complained of being charged noncompetitive prices, so AP's controller Devon Johnson rares that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources:...
Automotive Products (AP) designs and produces automotive parts. In 2017, actual variable manufacturing overhead is $ 308,600. AP's simple costing system allocates variable manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged non-competitive prices, so AP's controller Declan Smith realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that...
Wheeler Place (WP) designs and produces automotive parts. In 2017, actual manufacturing overhead is $307,800. WP's simple costing system allocates manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so WP's controller Deon Hunter realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources:...
3 of 5 (1 come core: 0 of 1 pt 15-21 (similar to) Question Help Automotive Products (AP) designs and produces automotive parts. In 2017, actual manufacturing overhead is $318,000. AP's simple costing system allocates manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so AP's controller Duncan Johnson realizes that it is time to examine the consumption of overhead...
Automotive Products (AP) designs and produces automotive parts. In 2017, actual manufacturing overhead is $280,000. AP's simple costing system allocates manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so AP's controller Devon Johnson realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources:...
Coupe Cabin (CC) designs and produces automotive parts. In 2017, actual manufacturing overhead is $307,800. CC's simple costing system allocates manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so CC's controller Declan Gilbert realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources:...
Automotive Products (AP) designs and produces automotive parts. In 2017, actual manufacturing overhead is $317,250. AP's simple costing system allocates manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so AP's controller Declan Donahue realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources:...
Which of the following customers should ABC Truckline serve and why should they choose that customer to serve based on the relevant facts below? Please include a breakdown of your thoughts for reference. ABC Truckline is trying to determine which of two customers to serve, based on average profitability. The relevant facts are as follows: Customer 1 is picked up on Mondays. The pickup is part of a route that averages 23 stops, covers 60 miles during the route, and...