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Mar G.

Mar G.

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Viewed Questions

What are the advantages of Activity-Based Costing?

Textbook of Financial Cost and Management Accounting

What is the relationship between management by exception and variance analysis?

What is the relationship between management by exception and variance analysis?

Horngren’s Cost Accounting

What are the four elements of the budgeting cycle?

What are the four elements of the budgeting cycle?

Horngren’s Cost Accounting

What is broad averaging, and what consequences can it have on costs?

What is broad averaging, and what consequences can it have on costs?

Horngren’s Cost Accounting

Questions asked

ANSWERED

Breanna Ollech verified

Numerade educator

What are your observations when you compare the results for each Traditional costing and activity based costing? Which do you think is more accurate Traditional costing or activity based costing? and why? What would you recommend the firm change the level of production for any category and why?

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ANSWERED

Hubert Agamasu verified

Numerade educator

what is traditional based costing

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ANSWERED

Sheryl Ezze verified

Numerade educator

- What are your observations when you compare the results for each method? - Which do you think is more accurate and why? - Based on your results, would you recommend the firm change the level of production for any category and why?

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INSTANT ANSWER

Instructions: Work the cost accounting problems (Part 1 and Part 2) provided below: Part 1: Klein Company produces three types of bird feeders: Basic, Squirrel-Proof, and Deluxe. Currently, the company allocates overhead to products using machine hours. This year, the company produced the following: - 1000 Basic models - 2000 Squirrel-Proof models - 1800 Deluxe models Details for each product at the end of the current year are as follows: \begin{tabular}{|l|r|r|r|} \hline & \multicolumn{1}{l}{ Baste } & \multicolumn{1}{c|}{ Squirr-Proof } & \multicolumn{1}{c|}{ Deluxe } \\ \hline Revenue & \( \$ 30,000 \) & \( \$ 110,000 \) & \( \$ 117,000 \) \\ \hline Direct Materials & \( \$ 12,000 \) & \( \$ 50,000 \) & \( \$ 54,000 \) \\ \hline Direct Labour & \( \$ 7,500 \) & \( \$ 19,000 \) & \( \$ 22,500 \) \\ \hline Machine-hours per unit & 0.3 MH & 0.5 MH & 0.4 MH \\ \hline \end{tabular} The total overhead cost to be allocated to products is \( \$ 28,000 \). Calculate the profit per unit for each product after allocated overhead costs using machine hours. Part 2: Use the activity-based information below to calculate the cost of each unit of product using machine setups instead of machine hours. \begin{tabular}{|c|c|c|c|c|} \hline Cost Driver & Coat & Basic & \begin{tabular}{l} Squirrel \\ Proof \end{tabular} & Deluxe \\ \hline Number of Machline Setups & \( \$ 12,000 \) & 3 Setups & 4 Setups & 5 Setups \\ \hline Operating Machines & \( \$ 4,000 \) & .3 MH & 5 MH & \( \Delta \mathrm{MH} \) \\ \hline Number of Soles Orders Reccived & \( \$ 4,000 \) & 20 Orders & 40 Orders & 45 Orders \\ \hline Number of Units Shipped & \( \$ 8,000 \) & 1.000 Units & 2,000 & 1.800 Units \\ \hline \end{tabular} Write a paper, no more than one page in length, that discusses the following: - What are your observations when you compare the results for each method? - Which do you think is more accurate and why? - Based on your results, would you recommend the firm change the level of production for any category and why?

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Leander Office Products produces and sells small storage and organizational products for office use. During the first month of operations, the products sold well. Andrea Leander, the owner of the company, was surprised to see a loss for the month on her income statement. This statement was prepared by a local bookkeeping service recommended to her by her bank manager. The statement follows: \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{l} LEANDER OFFICE PRODUCTS LTD. \\ INCOME STATEMENT \end{tabular}} \\ \hline Sales ( 40.000 units) & & \( \$ 200,000 \) \\ \hline \multicolumn{3}{|l|}{ Variable expenses: } \\ \hline Variable cost of goods sold* & \( \$ 80,000 \) & \\ \hline Variable selling and administrative expenses & 30.000 & 110.000 \\ \hline Contribution margin & & 90.000 \\ \hline \multicolumn{3}{|l|}{ Fixed expenses: } \\ \hline Fixed manufacturing overhead & 75.000 & \\ \hline Fixed selling and administrative expenses & 20.000 & 92.000 \\ \hline Operating loss & & \( \$(5.000) \) \\ \hline \end{tabular} Leander is discouraged over the loss shown for the month, particularly since she had planned to use the statement to encourage investors to purchase shares in the new company. A friend who is an accountant insists that the company should be using absorption costing rather than variable costing. He argues that if absorption costing had been used, the company would probably have reported a profit for the month. Selected cost data relating to the product and to the first month of operations follow: \begin{tabular}{ll} \hline Units Produced & 50,000 \\ Units Sold & 40,000 \\ Variable cost per unit: & \\ Direct Materials & \( \$ 1.00 \) \\ Direct Labour & \( \$ 0.80 \) \\ Variable manufacturing overhead & \( \$ 0.20 \) \\ Variable selling and administrative expenses & \( \$ 0.75 \) \\ \hline \end{tabular}

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ANSWERED

Anand Jangid verified

Numerade educator

Part 2: Use the activity-based information below to calculate the cost of each unit of product using machine setups instead of machine hours. egin{tabular}{|l|r|c|c|c|} hline multicolumn{1}{|c|}{ Cost Driver } & Cost & Basic & egin{tabular}{c} Squirrel- \ Proof end{tabular} & Deluxe \ hline Number of Machine Setups & ( $ 12,000 ) & 3 Setups & 4 Setups & 5 Setups \ hline Operating Machines & ( $ 4,000 ) & .3 MH & .5 MH & .4 MH \ hline Number of Sales Orders Received & ( $ 4,000 ) & 20 Orders & 40 Orders & 45 Orders \ hline Number of Units Shipped & ( $ 8,000 ) & 1,000 Units & 2,000 Units & 1,800 Units \ hline end{tabular}

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INSTANT ANSWER

Instructions: Work the cost accounting problems (Part 1 and Part 2) provided below: Part 1: Klein Company produces three types of bird feeders: Basic, Squirrel-Proof, and Deluxe. Currently, the company allocates overhead to products using machine hours. This year, the company produced the following: - 1000 Basic models - 2000 Squirrel-Proof models - 1800 Deluxe models Details for each product at the end of the current year are as follows: \begin{tabular}{l|r|r|r|} \hline & \multicolumn{1}{|c|}{ Basic } & \multicolumn{1}{c|}{ Squirrel-Proof } & \multicolumn{1}{c|}{ Deluxe } \\ \hline Revenue & \( \$ 30,000 \) & \( \$ 110,000 \) & \( \$ 117,000 \) \\ \hline Direct Materials & \( \$ 12,000 \) & \( \$ 50,000 \) & \( \$ 54,000 \) \\ \hline Direct Labour & \( \$ 7,500 \) & \( \$ 19,000 \) & \( \$ 22,500 \) \\ \hline Machine-hours per unit & 0.3 MH & 0.5 MH & 0.4 MH \\ \hline \end{tabular} The total overhead cost to be allocated to products is \( \$ 28,000 \). Calculate the profit per unit for each product after allocated overhead costs using machine hours.

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INSTANT ANSWER

Prepare a GST/HST return from the following information: the company name is Nelson Office Products and the Business Number is 345678900. The return covers the reporting period of April 1 to June 30, 20—. 1. Total sales for the fiscal period are $24,720.44 (before taxes); GST collected from customers during this period is $1,483.23. 2. Total GST/HST paid on purchases is $1,421.66. 3. A customer’s balance was written off last quarter as uncollectible because the customer had not been heard from for a long time. When the GST/HST return was filed for that quarter, a GST/HST adjustment was made for tax not collected. The customer, however, has now made a partial payment of $500 on the account. To calculate the portion of this payment considered to be GST collected,

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INSTANT ANSWER

Using the following information, complete a GST/HST return for the Winslow- Trail Company (Business No. 555789000) for the reporting period July 1 to September 30, 20—. This return is due by October 31, 20—. 1. Total sales for the fiscal reporting period are $23,560.39. 2. Balance in the GST/HST Payable account at the end of the reporting period is $1,413.62. 3. Balance in the GST/HST-ITC account at the end of the reporting period is $849.55. 4. A customer’s account has been determined to be uncollectible because the customer has declared bankruptcy. The amount of GST/HST on the sale made to the customer was $42.19 and was reported as collectible on the GST/HST return for the previous reporting period. Since this tax will not be collected, an adjustment will be required on this return.

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