CASE 5-69 (60 minutes) 1. Standard Model Deluxe Model Heavy-Duty Model Product costs based on traditional, volume- based costing system $105.00 $215.00 $232.00 × 110% × 110% × 110% × 110% Target price $115.50 $236.50 $255.20 2. Product costs based on activity-based costing system: Regular Model Standard Model Deluxe Model Direct material $10.00 $ 25.00 $ 42.00 Direct labor 10.00 20.00 20.00 Machinery depreciation
Words: 727 - Pages: 3
Managerial Decision Making, Case 2, Greetings Inc. Activity Based Costing |Case 2 | | Greetings Inc.: Activity-Based Costing | |This case is from the book: Managerial Accounting: Tools for Business Decision | |Making, 5th Edition | |Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso | |©2010 | |And was answered by some students. | | | | | 1. Activity Based Costing benefits businesses that are more complex in nature. In this case, Greetings. INC has added a new product
Words: 866 - Pages: 4
dynamics of costing systems as organizations try to predict those unseen costs that factor so heavily in the success and profitability of a business. The various costing systems are defined with a special emphasis on their ability to accurately predict those costs that are not of the normal operation and production of the company. Recent events in human society have drawn attention to issues that our predecessors could have only dreamed about and would have quickly dismissed. These costing systems are
Words: 1423 - Pages: 6
COSTING METHODS Costing methods for Super Bakery University of Phoenix ACC/561 December 19, 2011 Timothy W. Williams, Ph.D. Costing methods for Super Bakery Super Bakery is a virtual corporation created in 1990 by Franco Harris, developing a network of supply for “donuts and other baked goods aimed for the institutional food market” (Kimmel, et al, 2009, pg 867). According to Kimmel, et al (2009), “only the cores, strategic functions of the business are performed
Words: 628 - Pages: 3
Business Costing Technique Chosen PROCESS COSTING 1 2 2 2 Assumptions Processes of Manufacturing Beer DEPARTMENT ONE: STAGE 1 - MIXING DEPARTMENT ONE: STAGE 2 - BREWING DEPARTMENT TWO: PACKAGING 3 4 4 4 5 Process Costing DETERMINING FIGURES CALCULATING COST PER EU 6 7 8 Cost Reconciliation Recommendations CAPPING & LABELLING BOTTLES & UTILITIES TRANSPORTATION 9 10 10 11 11 Introduction of Outpatient Business Costing Technique Chosen ACTIVITY BASED COSTING (ABC)
Words: 4699 - Pages: 19
Running head: COSTING METHODS PAPER Costing Methods Paper Marsha Pettus University of Phoenix Accounting ACC/561 Bethany Kessel November 27, 2013 Costing Methods Paper Super Bakery, Inc. was founded by Franco Harris, formerly of the Pittsburgh Steelers, in 1990. The corporation supplies healthy, vitamin enriched doughnuts and other baked goods, out of an initial desire to make a difference in the institutional food market by targeting school systems nationwide
Words: 915 - Pages: 4
strategies they used and why management found necessary to use Activity-Based-Cost system. The opinion of this writer will explain if agrees or disagrees the implementation. This paper will recommend a costing system and will explain if it will work or not. Super Bakery is a virtual corporation which according to Kimmel, (2008), “a virtual corporation [is] one that consist of a core unit that is supported by a network of outsource activities. A virtual corporation minimizes investments in human resources
Words: 766 - Pages: 4
Bronson Shrimp Farms 1. Budgeted cost per package – Original costing system Using the original costing system that used total direct labor hours as the indirect cost allocation base, the total projected indirect costs will be allocated by first determining the allocation rate. Since we will be producing 10,000 packages of headless shrimps at 0.01 labor hours per package, the total number of hours worked would be 10,000 x 0.01 = 100 hours. Similarly, for the 50,000 packages of peeled and deveined
Words: 1213 - Pages: 5
Harvard Business School professor Robert S. Kaplan authored the case study as an illustration of use of activity based cost allocation and profitability (Kaplan, 2005). In the case presentation, John Malone, the General Manager of Dakota Office Products (DOP) commissioned analysis of the company’s operations and cost allocation practices; it focused on the company’s distribution center. Activities that emerged as cost drivers included: commercial freight shipping, personal delivery of orders under
Words: 2526 - Pages: 11
Costing Methods ACC 561 July 15, 2014 Costing Methods Absorption and variable costing are two methods an organization such as Polk Company can employ when accounting for costs and generating income statements. The differences between the two methods are focused on the types of costs absorbed or assigned to the product, specifically fixed and variable overhead expenses as well as when fixed overhead manufacturing costs are allocated. In absorption costing all costs are charged to the product
Words: 488 - Pages: 2
