Please provide an example of computing and use manufacturing overhead allocations using hierarchical and activity-based costing...

Please provide an example of computing and use manufacturing overhead allocations using hierarchical and activity-based costing methods.

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ekkarill92 answered 1 month ago

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Q 1. Explain the difference between activity-based costing for manufacturing overhead and a traditional costing that uses departmental overhead rates. Q 2. With reference to relevant legislation and case law, discuss the different methods of working out the decline in value of a depreciating asset.

Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following...

Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following activities and costs: Setup (1,000 setup hours) $118,000 Production scheduling (400 batches) 30,000 Production engineering (60 change orders) 90,000 Supervision (2,000 direct labor hours) 64,000 Machine maintenance (12,000 machine hours) 84,000 Total activity costs $386,000 The following additional data were provided for Job 845: Direct materials costs $7,000 Direct labor cost (5 Milling direct labor hours;35 Finishing direct labor hours) $1,000 Setup hours 5...

Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following...

Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following activities and costs: Setup (1,000 setup hours) $150,000 Production scheduling (400 batches) 80,000 Production engineering (60 change orders) 60,000 Supervision (2,000 direct labor hours) 66,000 Machine maintenance (12,000 machine hours) 48,000 Total activity costs $404,000 The following additional data were provided for Job 845: Direct materials costs $7,000 Direct labor cost (5 Milling direct labor hours;35 Finishing direct labor hours) $1,000 Setup hours 5...

Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following...

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Please type out answer Please discuss the concepts and benefits of using Activity-Based Costing (ABC)and provide...

Please type out answer Please discuss the concepts and benefits of using Activity-Based Costing (ABC)and provide examples to support your response. Is ABC better than using a single overhead base (such as direct labor hours) to allocate overhead? Can using ABC improve profitability and increase efficiencies?

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Explain the benefits of Activity Based Costing. Please provide a comprehensive response to this question.

1) Select the type of manufacturing company that would most benefit from activity based costing: Overhead...

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What are the main differences between job, process, and activity-based costing? How is manufacturing overhead calculated in each of the costing methods? How are variances identified?

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