Aniline Corporation owns a small printing press that prints leaflets, brochures, and advertising materials. Aniline classifies...
Aniline simple job-costing system has two direct-cost categories (direct materials and direct labor) and a single indirect-cost pool. Aniline operates at capacity and allocates all indirect costs using printing machine-hours as the allocation base. Aniline is concerned about the accuracy of the costs assigned to standard and special jobs and therefore is planning to implement an activity-based costing system. Aniline ABC system would have the same direct-cost categories as its simple costing system. However, instead of a single indirect-cost pool...
Home Insert A Page Layout B С D G H Cause-and-Effect Relationship Between Allocation Base and Activity Cost Total Standard Job Special Job 400 200 $ 600 $ 750 $ 100 $ 125 $ 90 $ 100 10 10 $ 75,000 Indirect costs of operating printing machines increase with printing machine hours 7 1 2 Number of printing jobs 3 Price per job 4 Cost of supplies per job 5 Direct labor costs per job 6 Printing machine-hours per job...
The job costing system at Suzy's Custom Framing has ve indirect contpools (purchasing, material handing machine maintenance product inspection, and packaging). The company is in the process of bidding on two jobs Job 215. an order of 10 inche personalized frames, and Job 325an order of 6 standard personalized frames. The controller wants you to compare overhead allocated under the current simple job-costing wystem and a newly designed activity based job-costing system. Total budgeted costs in each indirect cost pool...
The job costing system at Shelby's Custom Framing has five indirect cost pools (purchasing, material handling, machine maintenance, product inspection, and packaging). The company is in the process of bidding on two jobs; Job 215, an order of 16 intricate personalized frames, and Job 325, an order of 4 standard personalized frames. The controller wants you to compare overhead alocated under the current simple job-costing system and a newly designed activity-based job-costing system. Total budgeted costs in each indirect cost...
CP19-46 (similar to) Using a job order costing system, Pierre Computer Company estimated the total cost of two jobs as follows: (Click the icon to view the estimates under job costing.) |(Click the icon to view the ABC information.) (Click the icon to view the records for two clients.) Pierre Computer Company is now considering using an ABC system. Information about ABC costs and records for the same two jobs for 2020 follow: Read the requirements. Requirement 1. Compute the...
FireWorks produces mild-steel outdoor products, including two firepit models. The bulk of firepit sales come from their standard firepit – a basic half-sphere design. FireWorks’ custom firepit involves innovative designs and some intricate cutting work and, although sales volume is low, custom firepits generate a significantly higher sales price. Increasingly, FireWorks has been struggling competitively on price with its standard product although its custom firepits are a flaming success. Currently, FireWorks uses a simple job-costing system and allocates overhead based...
The job costing system at Shirley's Custom Framing has five indirect cost pools (purchasing, material handling, machine maintenance, product inspection, and packaging). The company is in the process of bidding on two jobs; Job 215, an order of 17 intricate personalized frames, and Job 325, an order of 6 standard personalized frames. The controller wants you to compare overhead allocated under the current simple job-costing system and a newly designed activity-based job-costing system. Total budgeted costs in each indirect cost...
The job costing system at Shannon's Custom Framing has five indirect cost pools (purchasing, material handling, machine maintenance, product inspection, and packaging). The company is in the process of bidding on two jobs, Job 215, an order of 15 intricate personalized frames, and Job 325, an order of 5 standard personalized frames. The controller wants you to compare overhead allocated under the current simple job-costing system and a newly designed activity-based job costing system. Total budgeted costs in each indirect...
1. Compute the total overhead allocated to each job under a simple costing system, where overhead is allocated based on machine-hours. 2. Compute the total overhead allocated to each job under an activity-based costing system using the appropriate activity drivers. 3. Explain why Shirley's Custom Framing might favor the ABC job-costing system over the simple job-costing system, especially in its bidding process. *There should be 10 total parts to this problem. The job-costing system at Shirley's Custom Framing has five...
The Green Company makes boats from wood. Job 459 is to build 40 rowboats. Job 459 requires 1,000 pounds of wood costing $8 per pound. It requires 60 hours of direct labor costing $25 per hour. Total cost for all jobs Total amount of activity for all jobs Type of manufacturing overhead for the whole year for the whole year Setup Cost $50,000 400 setups Materials Handling 320,000 16,000 moves Electricity 30,000 6,000 machine hours _______ Total manufacturing...