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### Transcript of sh - Mission Two of 's production activities

• hhfma02.qc17.1_sh.tdxex

Which statement is false?

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Two of 's production activities are kitting (assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that spends million a month on kitting and million a month on boxing. allocates the following: - Kitting costs based on the number of parts used in the computer - Boxing costs based on the cubic feet of space the computer requires

Suppose estimates it will use million parts a month and ship products with a total volume of million cubic feet. Assume that each desktop computer requires 100 parts and has a volume of 5 cubic feet.

What is the activity cost allocation rate? (Round all calculations to the nearest cent.)

• hhfma02.qc17.3_sh.tdxex

Two of 's production activities are kitting (assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that spends million a month on kitting and million a month on boxing. allocates the following: - Kitting costs based on the number of parts used in the computer - Boxing costs based on the cubic feet of space the computer requires

Suppose estimates it will use million parts a month and ship products with a total volume of million cubic feet. Assume that each desktop computer requires parts and has a volume of cubic feet. The allocation rate for kitting is \$ /part and the allocation rate for boxing is \$ /cubic foot.

What are the kitting and boxing costs assigned to one desktop computer? (Round all calculations to the nearest cent.)

• hhfma02.qc17.4_sh.tdxex

Two of 's production activities are kitting (assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that spends million a month on kitting and million a month on boxing. allocates the following: - Kitting costs based on the number of parts used in the computer - Boxing costs based on the cubic feet of space the computer requires

Suppose estimates it will use million parts a month and ship products with a total volume of million cubic feet. Assume that each desktop computer requires parts and has a volume of cubic feet. The allocation rate for kitting is \$ /part and the allocation rate for boxing is \$ /cubic foot. The kitting and boxing costs assigned to one computer are and \$ , respectively.

contracts with its suppliers to pre-kit certain component parts before delivering them to . Assume this saves million of the kitting cost and reduces the total number of parts by million (because considers each pre-kit as one part). If a desktop now uses parts, what is the new kitting cost assigned to one desktop? (Round all answers to the nearest cent.)

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Keyboard can use ABC information for what decisions?

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Which of the following is true for Dell, the computer company?

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Companies enjoy many benefits from using JIT. Which is not a benefit of adopting JIT?

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Which account is not used in JIT costing?

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The cost of lost future sales after a customer finds a defect in a product is which type of quality cost?

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Spending on testing a product before shipment to customers is which type of quality cost?

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Activity-based costing requires four steps.

Requirement 1. Rank the following steps in the order they would be completed. Number the first step as "1" until you have ranked all four steps.

• hhfma02.s17.2_sh.tdxex

and Roscoe are college friends planning a skiing trip to Aspen before the New Year. They estimated the following costs for the trip:

(Click the icon to view the costs.)

Requirements 1. suggests that the costs be shared equally. Calculate the amount each person would pay.

2. Roscoe does not like the idea because he plans to stay in the room rather than ski. Roscoe suggests that each type of cost be allocated to each person based on the cost driver listed above. Using the activity allocation for each person, calculate the amount that each person would pay based on his own consumption of the activity.

Requirement 1. If the costs are shared equally, each person would pay \$ .

Requirement 2. If the costs were allocated, each person would pay the following:

\$

Roscoe \$

Data Table

• hhfma02.s17.3_sh.tdxex

, Corp., is considering the use of activity-based costing. The following information is provided for the production of two product lines:

(Click the icon to view the information.)

plans to produce units of Product A and units of Product B.

Requirement 1. Compute the ABC indirect manufacturing cost per unit for each product. (Round your answers to the nearest cent.)

The indirect manufacturing cost per unit for Product A is \$ .

The indirect manufacturing cost per unit for Product B is \$ .

Data Table

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The following information is provided for the Antenna, Corp., which manufactures two products: Lo-Gain antennas, and Hi-Gain antennas for use in remote areas.

(Click the icon to view the information.)

plans to produce Lo-Gain antennas and Hi-Gain antennas.

Requirements 1. Compute the ABC indirect manufacturing cost per unit for each product.

2. Compute the indirect manufacturing cost per unit using direct labor hours from the single-allocation-base system. (Round the rates and unit costs to the nearest cent. Round total costs allocated to each product to the nearest whole dollar.)

Requirement 1. Compute the ABC indirect manufacturing cost per unit for each product.

The indirect manufacturing cost using ABC per unit for Lo-Gain antennas is \$ .

The indirect manufacturing cost per unit using ABC for Hi-Gain antennas is \$ .

Requirement 2. Compute the indirect manufacturing cost per unit using direct labor hours from the single-allocation-base system. (Calculate the indirect manufacturing cost per unit only after determining the total indirect manufacturing costs allocated to each product.)

The indirect manufacturing cost per unit for Lo-Gain antennas is \$ .

The indirect manufacturing cost per unit for Hi-Gain antennas is \$ .

Page 1 of 2

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Data Table

Page 2 of 2

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, Corp., makes two products: C and D. The following data have been summarized:

(Click the icon to view the data.)

The company plans to manufacture units of each product.

Requirement 1. Calculate the product cost per unit for Products C and D using activity-based costing. (Round your answers to the nearest cent.)

Requirement 1. Calculate the product cost per unit for Products C and D using activity-based costing. (Round your answers to the nearest cent.)

The per unit product cost for Product C is \$ .

The per unit product cost for Product D is \$ .

Data Table

Indirect manufacturing cost information includes the following:

• hhfma02.s17.6_sh.tdxex

, Corp., manufactures mid-fi and hi-fi stereo receivers. The following data have been summarized:

(Click the icon to view the data.)

The company plans to manufacture units of the mid-fi receivers and units of the hi-fi receivers.

Requirement 1. Calculate the product cost per unit for both products using activity-based costing. (Round your answers to the nearest cent.)

Requirement 1. The per unit product cost for Mid-Fi receivers is \$ .

The per unit product cost for Hi-Fi receivers is \$ .

Data Table

Indirect manufacturing cost information includes:

• hhfma02.s17.7_sh.tdxex

, Inc., is a technology consulting firm focused on Web site development and integration of Internet business applications. The president of the company expects to incur of indirect costs this year, and she expects her firm to work direct labor hours. systems consultants earn per hour. Clients are billed at of direct labor cost. Last month consultants spent hours on engagement.

Requirements 1. Compute indirect cost allocation rate per direct labor hour.

2. Compute the total cost assigned to the engagement.

3. Compute the operating income from the engagement.

Requirement 1. Compute indirect cost allocation rate per direct labor hour. (Round your answer to the nearest cent.)

Requirement 2. Compute the total cost assigned to the engagement. (Round your answer to the nearest whole dollar.)

Requirement 3. Compute the operating income from the engagement.

• hhfma02.s17.8_sh.tdxex

, Inc., is a technology consulting firm focused on Web site development and integration of Internet business applications. The president of the company expects to incur of indirect costs this year, and she expects her firm to work direct labor hours. systems consultants earn per hour. Clients are billed at of direct labor cost. The president of suspects that her allocation of indirect costs could be giving misleading results, so she decides to develop an ABC system. She identifies three activities: