...Manufacturing Overhead Name Institution Manufacturing Overhead Manufacturing overhead costs play a vital role in determining final cost of the product. Manufacturing overhead represents all the costs that the company incurs indirectly and not related to the cost of direct labor, direct materials or direct cost of machines (Donald, 2010). In short, companies are not able to trace these costs to individual items during the manufacturing process. Examples of overhead costs include factory supplies, costs emanating from compliance with local, state and federal regulations as well as certain type of equipment and machinery costs (Donald, 2010). Other manufacturing overhead costs include quality assurance costs, property insurance premiums and clean-up costs. Companies may assign to each process a predefined share of manufacturing overhead costs. Companies develop predetermined overhead costs because they do not have the capability to accurate determine the cost of these miscellaneous products. By adding the manufacturing overhead cost to direct labor, companies are able to arrive at the Conversion Cost, which is crucial in informing management on the cost of converting raw materials into the final product that will be destined for the market (Donald, 2010). Furthermore, the Generally Accepted Accounting Principles (GAAP) demands that the company factors in direct materials costs, direct labor as well as factory or manufacturing overhead...
Words: 905 - Pages: 4
...Both direct materials and indirect materials are a. period costs. b. merchandise inventory. c. raw materials. d. manufacturing overhead. 73. Into which one of the following accounts would the work of factory employees that can be physically and directly associated with converting raw materials into finished goods be categorized? a. Direct labor b. Indirect labor c. Manufacturing overhead d. Indirect materials 74. Which one of the following would not be classified as manufacturing overhead? a. Indirect materials b. Insurance on factory building c. Indirect labor d. Direct materials 75. Which one of the following is a product cost? a. Indirect labor b. Office salaries c. Sales person’s salaries d. Advertising costs 76. A company uses sandpaper in its production process. How is the cost of the sandpaper classified? a. Miscellaneous expense b. A direct material c. A period cost d. An indirect material 77. In which classification would the wages of a factory payroll clerk be classified? a. Raw materials b. Indirect labor c. Period cost d. Direct labor 78. Which one of the following is not a manufacturing cost? a. Advertising costs b. Cost of goods sold c. Manufacturing overhead d. Direct materials 79. What effect do current technology changes have on managerial accounting? a. Creation of the...
Words: 1822 - Pages: 8
...Seligram Corporation Analysis ETO’s existing cost system contains only one cost pool, which is the entire facility. All manufacturing overhead is collected into this pool, and the total overhead cost uses total number of direct labor dollars as its cost allocation base. These labor hours are consumed to give a single direct labor dollar burden rate. Failure of the Existing System: The major flaw in ETO’s existing system is that it assumes that all products consume direct labor and overhead in the same proportion. The critical problem that caused the existing cost system to fail is that the organization uses a single cost pool accounting system. The system considers all products to use direct labor and overhead in the same proportion. The different cost structure show some products are produced on equipment that is labor intensive while others require machine hours. Cost under Existing System: ICA: $2247 ICB: $5025 Capacitor: $2680 Amplifier: $1286 Diode $1272 Cost under System Proposed by the Accountant ICA: $2580 ICB: $5661 Capacitor: $1913 Amplifier: $1030 Diode: $1583 Cost under System Proposed by the Consultant ICA: $2765 ICB: $6281 Capacitor: $2011 Amplifier: $995 Diode: $1629 Preferred System The three-center system is preferred because it provides the most accurate information. The cost system shows differences in the way overhead is used in different parts of production. Recommendations We recommend that ETO revisits its market share structure...
Words: 253 - Pages: 2
... "But surely we can do something to improve our financial position. Maybe we should change our product mix. We don't seem to be making a profit on our Model 101 truck. Why don't we just stop making it altogether? Maybe we should purchase engines from an outside supplier, relieving the capacity problem in our engine assembly department. Why don't the three of you get together, consider the different options, and come up with a recommendation?" Production Possibilities and Standard Costs No The Merton Truck Company manufactured two specialized models of trucks, Model 101 and Model 102, in a single plant in Wheeling, Michigan. Manufacturing operations were grouped into four departments: engine assembly, metal stamping, Model 101 assembly, and Model 102 assembly. Do Capacity in each department was expressed in manufacturing machine-hours available (net of maintenance downtime). Machine-hours available, in conjunction with machine-hours required for each truck model in each department, determined Merton's "production possibilities." For example, the company's engine assembly capacity was sufficient to assemble engines for either 4,000 Model 101 trucks per month (4,000 machine-hours available ÷ 1 machine-hour required per truck) or 2,000 Model 102 trucks per month (4,000 machine-hours available ÷ 2 machine-hours per truck), if devoted fully to either model. Of course, Merton could also assemble engines for both models: for example, if...
Words: 1233 - Pages: 5
...Drawings | Drawings could help illustrate complex ideas of the presentation into visual terms. | If the drawings are not nice looking, it could possibly lose information about the presentation the speaker is trying to disseminate. | Graphs | Graphs can dramatically be used to show facts. | Using too much graphs could cause loss of interest from the audience. | Charts | Usually in list form that summarizes large blocks of information among two or more items. | May have too much information on chart. Thus, making the audience confused on what the speaker is presenting. | Transparencies | Cheap and easy to make drawings, writing, or print a picture on the acetate sheet while using an overhead projector. | Old and out of date technology that is rarely used. Must check to see if an overhead projector is available and operable. | Video | Easily incorporated into a speech. | May cause a distraction to the presentation. If the video is a low-resolution video, it will be blurry and distort when projected on a large screen. | Multimedia Presentation | A presentation that consist of multiple types of visual and/or audio aids in the same talk. | Takes too much time to construct a presentation. May create a distraction to the message being sent to the audience. | Speaker | Could use their...
Words: 332 - Pages: 2
...English for Presentations & Public Speaking Useful phrases, vocabulary and tips January 15, 2008 Authored by: Geoffrey Smih Contents PREPARATION ............................................................................................................. 3 OBJECTIVE ................................................................................................................... 3 AUDIENCE .................................................................................................................... 3 VENUE ......................................................................................................................... 3 TIME AND LENGTH ........................................................................................................ 3 METHOD ...................................................................................................................... 3 CONTENT ..................................................................................................................... 4 STRUCTURE ..................................................................................................................... 5 1 INTRODUCTION .......................................................................................................... 5 2 BODY OF PRESENTATION ............................................................................................ 5 3 CONCLUSION .......................................................................................
Words: 2706 - Pages: 11
...PRACTICAL USE OF ICT EQUIPMENT TO DELIVERY INSTRUCTION HAND BOOK ICT Equipment for Instructional Delivery Introduction: ICT stands for Information and Communications technology. It is a suite of electronic devices connected together to process data and disseminate information in a consistent manner. In a learning environment it is the term used to cover all the computing and telecommunications used for research, teaching or administration; Studies show that the use of ICT equipment in the classroom has enhanced learning and teaching. It also facilitates group work and collaborative learning. Its benefits include: Alternative way to teaching /learning; Makes teaching and learning easier and better; Customised curriculum and applications; Makes teaching and learning more diversified and interactive; Technological configuration for each classroom: Each classroom should be equipped with the following: Digital/Multimedia projector: is a device that receives a signal and projects the corresponding image on a projection screen using a lens system. It takes a signal from a Computer, TV or Video source to produce a larger image using a projector light and displays it on a screen. Digital Projector Visualisers: Otherwise called document cameras, are real-time image capture devices for displaying an object to a large audience. Like an opaque projector, a document camera is able to magnify and project the images of actual, three-dimensional objects, as well as transparencies...
Words: 3647 - Pages: 15
...ABSTRACT Electric Overhead Travelling (EOT) Crane is one of the essential industrial equipment for material handling job. Indecent years little attention has been paid to the optimal design heavy electric overhead travelling bridges. The motive might be, but not limited to the availability of prevailing FEM, DIN, ISO, CMAA, BS, Chinese and now CEN standards for the design of cranes. Most of the crane manufacture has standardized the single dimensioned box section for multiple spans and duties of crane bridges for manufacturing simplicity. LIST OF TABLES Table No. | Table Description | Page No. | 1 Different cross section formula 2 Dimension for ramshorn hooks LIST OF FIGURES Figure No. Figure Description Page No. 1.1.1 Overhead crane 1.3.1 Standard crane 1.4.1 Free standing crane 1.5.1 Gear box 1.5.2 Electric brake motor 1.5.3 Rope guide 1.5.4 Load limiter 1.5.5 Low headroom trolley 1.6.1(A) Top Running Bridge Cranes 1.6.1(B) Under Running Bridge Crane 1.7.1 Top running vs. under running 1.9 Double girder crane hoist 1.9.1 Chain hoist 1.9.2 Wire rope hoist 3.1.1 Drawing of 160 ton hook, nut & Lock plate 3.2.1 CAD model of 160 ton hook 3.3.1 Different views of crane hook 3.3.2 Bending of a beam with larger Initial curvature 3.4.1 Modified cross section 3.5.1 Circular cross section 3.5.2 Rectangular cross section ...
Words: 5729 - Pages: 23
...| January | February | March | Total | Cash inflows: | | | | | Sales | 69 600 | 56 944 | 56 470 | 183 014 | Stock decrease | 5000 | 17 500 | - | 22 500 | Interest receivable | 0 | - | 155,05 | 155,05 | Total inflows | 74 600 | 74 444 | 56 625,05 | 205 669,05 | | | | | | Cash outflows: | | | | | Direct materials | 21 000 | 17 500 | 16 500 | 55 000 | Direct labour | 15 000 | 16 500 | 9 750 | 41 250 | Variable productionoverhead | 15 000 | 10 600 | 8 800 | 34 400 | Fixed productionoverhead | 2 000 | 2 000 | 2 000 | 6 000 | Admin. and selling costs | 15 000 | - | - | 15 000 | Equipment | - | - | 30 000 | 30 000 | Stock increase | - | - | 20 000 | 20 000 | Interest payable | 0 | (34) | - | 34 | Total outflows | 68 000 | 46 634 | 87 050 | 201 684 | | | | | | Net cash | 6 600 | 27 810 | (30 424,95) | 3 985,05 | Opening cash balance | (5000) | 1 600 | 29 410 | | Closing cash balance | 1 600 | 29 410 | (1 014,95) | | (a) Our calculations: (50%) 10 000$ - December a) January 50 000$ 20 000$ (40% PC) – direct materials (50%) 10 000$ - January 11 000$ - January February 55 000$ 22 000$ - DM 11 000$ - February ...
Words: 636 - Pages: 3
...beyond the iPad. Imagine a future without waiters, without anyone asking you if you want sparkling or still. Without the condescending glance of a server who thinks they know so much. Imagine sitting down to dinner at a table lit by an overhead projector and interacting with the projections on the table in front of us. Our order? Placed by the swipe of a finger. This is the future of restaurants. These types of table first introduce London’s “inamo” restaurant called E-Table, the interactive ordering system is designed to give patrons “more control over their dining experience”. A projector, which is installed in the ceiling above each table, projects an interactive menu on the tabletop. Using a touch mouse pad, patrons can navigate the menu, place orders, choose a virtual tablecloth, and project images of each meal on their plates to help them decide which one to get. The system isn’t only for placing orders – patrons can also use it to play video games, call a taxi, or watch the chef prepare their meals via a live webcam! E-Table also offers a lot of perks to the restaurant owners, like reduced staff costs, an increase in customer spending, and a more efficient way to deal with customers. How it works: The E-Table system uses overhead projection to deliver a menu and other digital images to a restaurant table-top. Projected images do overlay food dishes in restaurants but the system can be designed as clients want. In fact the restaurants have a clear display no projection...
Words: 359 - Pages: 2
...(number of presentations= once or twice words shown) x 2 (word frequency= low or high) design was used. The participants were presented with a list of 36 words on an overhead projector (see Appendix for a complete list of words used in this experiment) all the words were white, same size letters, same font as well. All words presented had a black background; the concreteness and word length was the same. The list consists of 18 high frequency words and 18 low frequency words. Participants were also given a sheet of paper numbered 1-36. Participants were instructed to study and to write down an estimate (on the numbered paper given) of the chance of how well they would do at recalling each word on a later test (i.e. if you thought you had 80% chance of recalling a word, you would write down 80). After participants were presented with the words once, they were instructed that there would be an additional chance for them to study some of the words (without making recall estimates). While participants were instructed to write down estimate times, they were also told whether a word would be presented once or twice. After participants were done studying the list of words, they were then asked to write down as many words as they could recall. Procedure First participants were told to look in front of the classroom at the overhead projection as the instructor was about to present the list of 36 words. The instructor then began to run a practice trial. The...
Words: 784 - Pages: 4
... Mr. Carte’s final statement on the case has a lot of validity to it. He is concerned that although they will be buying a new machine that will decrease direct labor rates, it will increase the direct labor dollar burden rate and result in an increase to other customers. Mr. Carte expects to lose 25% of the customer base if they do not change the accounting system. The biggest problem with the current system is that it is a one pool system, meaning it assumes that all products use direct labor and overhead in the same amount. However, if the company purchases this machine it will clearly have an area that has low direct labor costs compared to other areas. This is where I believe the consultant is correct in recommending a three-center system. By using the three-center system it will provide the most accurate cost information. The increased number of cost centers under the three-center system enables the cost system to capture differences in the way overhead is consumed throughout different parts of the process. Using the information found in exhibit 7, I was able to calculate that the new machine will have a very high burden rate in year 1. The estimated burden rate for year 1 would be $2,060. This is based on utilizing 10% of the total 4,000 hours a year, giving year 1 400 hours of machine time. The burden rate is expected to decrease every year after year 1. This will happen because depreciation costs will decrease significantly and the $75,000 for...
Words: 299 - Pages: 2
...Fall Protection [pic] |Construction Safety and Health |U.S. Department of Labor | |Outreach Program |OSHA Office of Training and | | |Education | | |May 1996 | INTRODUCTION The purpose of this discussion is to provide basic, comprehensive information to assist you in developing effective presentations. The use of visual aids, coupled with good public speaking skills, work hand-in-hand to create effective presentations. Your speaking style and stage presence are personal talents that you can refine with much practice and experience. Each aspect of effective presentations, however, could not be detailed in this discussion. Instead, much emphasis is given to visual aids which are essential to all successful presentations. DESIGNING THE PRESENTATION There is no secret to developing an effective presentation. Establishing your objectives, planning and organizing your material, and using appropriate visual aids are the essential ingredients. The recipe for effective presentations calls for all three ingredients, and you must use them in the order in which they are presented here. By establishing your objectives...
Words: 3986 - Pages: 16
...Requires more expensive and less labor intensive equipment Now they are using single cost pool: For every dollar you spent on direct labor, you allocate 1.45 dollar to overhead For every dollar you spent on direct labor, you allocate 1.45 dollar to overhead We at first assumed direct labor is proportional to machine hour. Therefore even direct labor goes down, machine hour goes down as well. However, we know some process needs more machine hour. Major flaw of the current system: * Only one cost pool * Direct labor is second stage allocation base * Existent system assumed that all products consume direct labor and overhead in the same proportion What changes does ETO face? * More automated, less labor needed * More complicated testing * Smaller and more frequent lots * Require more expensive equipment * Product diversity: some require the expensive equipment while others don’t Products are either over or undercosted Products are either over or underpriced demand moves toward less labor demand moves toward more complex testing The current cost system also causes the misunderstanding that: * Capital intensive procedure look favorable * Labor intensive procedures look unfavorable How to improve the cost system: * Add cost pool * Add cost driver Overhead is...
Words: 593 - Pages: 3
...TITLE: 4 type of sentences PURPOSE: To introduce the class to four kinds of sentences, and how understanding and using different types of sentences allows writers to control the tone of their sentences. GOAL: Students will be able to both name and write the four different types of sentences. OBJECTIVES: Students will be able to differentiate between the four different types of sentences. MATERIALS: PowerPoint, overhead projector, notebooks, pencils/pens, 4 types of sentences worksheets (8), Jeopardy Game PROCEDURES AND METHODS: Tell students that they will be learning about the four different types of sentences today. Ask the class for volunteers to name the different types of sentences. Once students have made educated guesses, begin the PowerPoint presentation. At the end of the PowerPoint there are several examples. Have each student take a turn identifying the type of sentence displayed and have them give an explanation. Students will then be given a worksheet covering the different sentence types, for which they will work on independently as I walk around answering any questions. Once the worksheet is complete, if time allows, the class will participate in a Jeopardy review game over the 4 types of sentences, which I have prepared to display on the projector. The winning team will receive Crown Jewel Bucks, which can be spent at the school Academic Bookstore. EVALUATION: Ask students to complete the Sentence Types worksheet. This should take approximately 15 minutes...
Words: 344 - Pages: 2
