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In: Accounting
Woodland Industries manufactures and sells custom-made windows.
Its job costing system was designed using an activity-based costing
approach. Direct materials and direct labor costs are accumulated
separately, along with information concerning three manufacturing
overhead cost drivers (activities). Assume that the direct labor
rate is $14 per hour and that there were no beginning inventories.
The following information was available for 2016, based on an
expected production level of 45,700 units for the year, which will
require 219,000 direct labor hours:
| Activity Cost Driver | Budgeted Costs for 2016 | Cost Driver Used as Allocation Base | Cost Allocation Rate | |||||||
| Materials handling | $ | 48,180 | Number of parts used | $ | 0.22 | per part | ||||
| Cutting and lathe work | 2,163,720 | Number of parts used | 9.88 | per part | ||||||
| Assembly and inspection | 4,511,400 | Direct labor hours | 20.60 | per hour | ||||||
The following production, costs, and activities occurred during
the month of July:
| Units Produced | Direct Materials Costs | Number of Parts Used | Direct Labor Hours |
| 3,380 | $101,500 | 2,677 | 13,500 |
PART A IS CORRECT
Required:
a. Calculate the total manufacturing costs and the cost per unit of the windows produced during the month of July (using the activity-based costing approach). (Round "Cost per unit produced" to 2 decimal places.)
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NEED HELP WITH PART B
b. Assume instead that Woodland Industries applies manufacturing overhead on a direct labor hours basis (rather than using the activity-based costing system previously described). Calculate the total manufacturing cost and the cost per unit of the windows produced during the month of July. (Hint: You will need to calculate the predetermined overhead application rate using the total budgeted overhead costs for 2016.) (Round "Cost per unit produced" to 2 decimal places.)
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In: Accounting
2-Each student will prepare an 8-12 page research paper (2-3 pages for each question): double-spaced, Times New Roman and 12-point font.
3-Originality is a “must” in research. Therefore, use your own words when answering questions - DO NOT copy text from your book or any other source. Copied answers will result in a zero on this assessment.
4-Use references, if needed. Please use APA format when citing sources.
The coronavirus is hitting businesses and their employees. Some businesses are still open and millions of employees are working to serve customers. Some of the employees work in their workplaces while some others work from home. Almost all employees worry whether they will lose their jobs or if they will have a pay cut. It is obvious that unemployment will rise because millions of employees will lose their jobs and the remaining employees may have a pay cut (10, 20, 30, 50%) depending on the position in his/her workplace. Because of the coronavirus, the business environment has started to change. It is becoming a challenging fast-changing environment. Currently, many managers are faced with difficulties. In the near future and in the long run, they will need to deal with important issues. Lastly, you have to remember that one can easily manage firms during prosperous times but effective managers flourish during difficult times.Below is a sample list of terms that you can use when answering the questions. Job security and protection; Employee morale; Employee stress; Anxiety; Employee wellness; Effective decision making; Work performance; Key competencies; Productive employees; Quality of work produced; Work-life balance; Mental health; Employees in a high-risk health category; Illness; Government sector; Health sector; Security forces.
Q1-What should managers do to manage employees and minimize the negative effects of the coronavirus on employees? Discuss the major OB issues faced by managers when dealing with employees who are currently working and the major OB issues that managers need to handle in the near future.
Q2-What would be the possible changes and developments in the workforce and workplace diversity in the near future and in the long run? Discuss.
Q3-How should managers handle an employee that is unable to work due to age or health issues?
Q4-What kind of expertise, knowledge, skills and abilities will be needed from employees in the near future and in the long run? Discuss.
Q5-What should managers do to increase the job satisfaction of currently working employees? Discuss.
Q6-Discuss how to deal with emotions that can arise from the current situation and how to stay emotionally healthy during the coronavirus outbreak.
In: Operations Management
| With the data given below we need to fill out the spreadsheet. | |||
| Data | |||
| Work in process, beginning: | |||
| Units in process | 200 | ||
| Completion with respect to materials | 55% | ||
| Completion with respect to conversion | 30% | ||
| Costs in the beginning inventory: | |||
| Materials cost | $9,600 | ||
| Conversion cost | $5,575 | ||
| Units started into production during the period | 5,000 | ||
| Costs added to production during the period: | |||
| Materials cost | $368,600 | ||
| Conversion cost | $350,900 | ||
| Work in process, ending: | |||
| Units in process | 400 | ||
| Completion with respect to materials | 40% | ||
| Completion with respect to conversion | 25% | ||
| Enter a formula into each of the cells marked with a ? below | |||
| Weighted Average method: | |||
| Equivalent Units of Production | |||
| Materials | Conversion | ||
| Units transferred to the next department | 110 | 60 | |
| Ending work in process: | |||
| Materials | 160 | ||
| Conversion | 100 | ||
| Equivalent units of production | 270 | 160 | |
| Costs per Equivalent Unit | |||
| Materials | Conversion | ||
| Cost of beginning work in process inventory | $ 9,600 | $ 5,575 | |
| Costs added during the period | $368,600 | $350,900 | |
| Total cost | $ 378,200 | $ 356,475 | |
| Equivalent units of production | 270 | 160 | |
| Cost per equivalent unit | $1,400.74 | $2,227.97 | |
| Costs of Ending Work in Process Inventory and the Units Transferred Out | |||
| Materials | Conversion | Total | |
| Ending work in process inventory: | |||
| Equivalent units of production | 270 | 160 | |
| Cost per equivalent unit | $1,400.74 | $2,227.97 | |
| Cost of ending work in process inventory | $378,200 | $356,475 | $734,675 |
| Units completed and transferred out: | |||
| Units transferred to the next department | 270 | 160 | |
| Cost per equivalent unit | $1,400.74 | $2,227.97 | |
| Cost of units transferred out | ? | ? | ? |
| Cost Reconciliation | |||
| Costs to be accounted for: | |||
| Cost of beginning work in process inventory | ? | ||
| Costs added to production during the period | ? | ||
| Total cost to be accounted for | ? | ||
| Costs accounted for as follows: | |||
| Cost of ending work in process inventory | ? | ||
| Cost of units transferred out | ? | ||
| Total cost accounted for | ? | ||
In: Accounting
Manson Industries incurs unit costs of $8 ($5 variable and $3
fixed) in making an assembly part for its finished product. A
supplier offers to make 14,000 of the assembly part at $6 per unit.
If the offer is accepted, Manson will save all variable costs but
no fixed costs. Prepare an analysis showing the total cost saving,
if any, Manson will realize by buying the part. (Enter
negative amounts using either a negative sign preceding the number
e.g. -45 or parentheses e.g. (45).)
| Make | Buy | Net Income Increase (Decrease) |
|||||
|---|---|---|---|---|---|---|---|
| Variable manufacturing costs | $enter variable manufacturing costs in dollars | $enter variable manufacturing costs in dollars | $enter variable manufacturing costs in dollars | ||||
| Fixed manufacturing costs | enter fixed manufacturing costs in dollars | enter fixed manufacturing costs in dollars | enter fixed manufacturing costs in dollars | ||||
| Purchase price | enter the purchase price in dollars | enter the purchase price in dollars | enter the purchase price in dollars | ||||
| Total annual cost | $enter total annual cost in dollars | $enter total annual cost in dollars | $enter total annual cost in dollars |
| The decision should be to select between make and buy makebuy the part. |
In: Accounting
A company manufactures and sells two products: Product A1 and Product C4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
| Expected Production | Direct Labor-Hours Per Unit | Total Direct Labor-Hours | |
| Product A1 | 300 | 4.0 | 1,200 |
| Product C4 | 600 | 2.0 | 1,200 |
| Total direct labor-hours | 2,400 | ||
The direct labor rate is $25.90 per DLH. The direct materials cost per unit is $285 for Product A1 and $244 for Product C4.
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| Estimated | Expected Activity | |||||
| Activity Cost Pools | Activity Measures | Overhead Cost | Product A1 | Product C4 | Total | |
| Labor-related | DLHs | $ | 42,600 | 1,200 | 1,200 | 2,400 |
| Production orders | orders | 67,630 | 400 | 600 | 1,000 | |
| Order size | MHs | 137,820 | 3,300 | 3,100 | 6,400 | |
| $ | 248,050 | |||||
The total cost per unit of Product C4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
In: Accounting
The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card manufacturer:
| Direct material | $ | 2,200,000 | |
| Advertising expense | 98,000 | ||
| Depreciation on factory building | 115,000 | ||
| Direct labor: wages | 535,000 | ||
| Cost of finished goods inventory at year-end | 115,000 | ||
| Indirect labor: wages | 142,000 | ||
| Production supervisor’s salary | 47,000 | ||
| Service department costs* | 100,000 | ||
| Direct labor: fringe benefits | 99,000 | ||
| Indirect labor: fringe benefits | 30,000 | ||
| Fringe benefits for production supervisor | 11,000 | ||
| Total overtime premiums paid | 55,000 | ||
| Cost of idle time: production employees§ | 40,000 | ||
| Administrative costs | 150,000 | ||
| Rental of office space for sales personnel† | 15,000 | ||
| Sales commissions | 6,000 | ||
| Product promotion costs | 10,000 | ||
*All services are provided to manufacturing departments.
§Cost of idle time is an overhead item; it is not included in the direct-labor wages given above.
The rental of sales space was made necessary when the sales offices were converted to storage space for raw material.
Compute each of the following costs for the year just ended
a.Total prime cost
Total manufacturing overhead costs
Total conversion costs
Total product costs
Total period costs
In: Accounting
Changing Levels of Current Liabilities
Firm B has the following levels of assets, liabilities, and equity:
Assets Liabilities and Equity
Current Assets $20,000 Current Liabilities $10,000
Fixed Assets 42,000 Long-term Debt 37,000
Total 62,000 Equity 15,000
Total 62,000
The firm’s current liabilities cost approximately 4% annually to maintain, and the average annual cost of its long-term funds is 15%.
Calculate the firm’s initial values of 1) the ratio of current liabilities to total assets, 2) the annual cost of financing, and 3) net working capital.
If the firm shifts $5,000 of current liabilities to long-term funds, find the value of 1) the ratio of current liabilities to total assets, 2) the annual cost of financing, and 3) net working capital.
Returning to the original balance sheet, assume the firm shifts $5,000 of long-term funds to current liabilities, find the value of 1) the ratio of current liabilities to total assets, and 2) the annual cost of financing, and 3) net working capital.
Summarize your findings by describing the relationship between risk and return and the three different liability structures found in a, b, and c.
In: Finance
WHen starting a small staffing/recruiting firm decide how many sales (in units) you would make in a year (factoring in all decisions made so far--target market, competition, etc.).What is your gross revenue projection for the year? (unit price x units sold = revenue) 2. There are fixed costs to consider. Give some basic examples of fixed cost expense categories for a business such as yours. Estimate what the associated fixed cost expenses will be on an annual basis for your venture. What is this figure? 3. There are variable costs to consider. Give some basic examples of variable cost expense categories for a business such as yours. Estimate what the associated variable cost expenses will be on a per-unit produced/sold basis. Based on sales projections in #1 above, what then is the total variable cost expenses for the year? 4. Combine total fixed costs and total variable costs. This is your total expenses. What is this figure? 5. Figure your net profit from gross revenue minus total expenses. What is this figure? 6. What is your break-even point in dollars? What is your break-even point in units sold?
In: Finance
Hart Company sells and delivers office furniture across Western
Canada.
The costs associated with the acquisition and annual operation of a
delivery truck are given below:
Insurance$3,593 Licences$205 Taxes
(vehicle)$122 Garage rent for parking (per
truck)$1,220 Depreciation ($25,500 ÷ 5
years)$5,100 Gasoline, oil, tires, and
repairs$0.20/km
3. Assume that the company decides to use the truck during the second year. Near year-end, an order is received from a customer over 1,000 kilometres away. What costs from the previous list are relevant in a decision between using the truck to make the delivery and having the delivery done commercially? (Round your answer to 2 decimal places.)
4. Occasionally, the company could use two trucks at the same time. For this reason, some thought is being given to purchasing a second truck. The total kilometres driven would be the same as if only one truck were owned. What costs from the previous list are relevant to a decision about whether to purchase the second truck?
In: Accounting