production cost. Sally’s boss has suggested that she do an analysis supporting her suggestion. Last week, Sally received an invitation to bid on a job for Husanti Industries, and she has decided to determine whether a “low” bid is warranted for this customer. From the production department, Sally received an estimate that the job will require 2000 labor hours, 8000 machine hours, and material cost of $178,000. Cost accounting has indicated that the average labor cost is $22 per hour. The cost accounting
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Date: November 17, 2011 From: Andy Moon – A00838117 To: Mr. Karl Fichter Subject: Case Study 2 – Pressure Vessel | 1. Problem The supply manager of Oceanics Inc., Jack Toole, is faced with a situation in decision-making for purchasing one manufactured pressure vessel from either one of the two suppliers, Atomic Products Company and Nuclear Vessels, Inc., who will provide the best value. While Jack needs to choose the best value from a purchasing standpoint, he also needs to choose
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annual salary of $32,000 and a cleaning person at an annual salary of $24,000. Real estate taxes are $10,000 per year. The rooms rent at an average price of $60 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $8.00 per person per night and the cost of food which is $4.00 per person per night. Instructions: (a) Determine the number of rentals and the sales revenue Manal needs to break even using the contribution margin technique. (b) If the current
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American InterContinental University Unit 3 Discussion Board Managerial Accounting ACCT310-1205B-06 January 27, 2013 Job order costing is used in situations where there are different products that are being produced each period. According to accounting for to management (2000), the costs are traced to the jobs and then the cost of the jobs that are divided by the number of the units in the job that are arrive at the cost per unit (para. 1). The type of industry that uses this type of system are
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| |Activity-Based Costing | |Product/Cost Relationships | |
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A Time Bomb-Greece recession In ancient Greece mythology, bringing in a normal trophy leads Tory fall to enemy’s occupation. Now, similarly, the European countries that had promoted Greece to enter the Euro area, is swallow heavily their bad decision. Who had expect, a country accounted for only 2.5% of the overall southern European countries of the Eurozone would drag others into mud. Greece debt crisis began in December 2009. Three major international rating agencies continuously lowered Greece's
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One of the major problems that could occur when using the analysis of direct material and other direct costs is over estimating. This is a problem that could easily be done on most projects, especially restoration projects. It would be easier to consider all of the “surprise factors” that may jump up throughout the construction period when bidding on newer projects but not as easy when looking at a restoration. This is a problem that I think gets many contractors into trouble. It would be very
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Case 19-1 Bennett Body Company 1. In response to the email of Paul Bennett: The Bennett system has a higher cost of paperwork because we are using the Job Order Costing and the Conley System uses process costing. Conley Corporation uses Process costing in accumulating cost of production. We are costing products based on per job order bases. Conley is costing their production on a per department basis because it has standard model design. Our products are based on costumer's specification, and
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blending, the sherbet is packaged in quart containers. Wakefield has gathered the following information from Teresa Adams, TasteeFruit’s cost accountant: * TasteeFruit purchases raspberries at a cost of $0.80 per quart. * All other ingredients cost a total of $0.45 per gallon. * Direct labor is paid at the rate of $9 per hour. * The total cost of material and labor required to package the sherbet is $0.41 per quart. Adams has a friend who owns a berry farm that
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material cost for each doll is approximately $3.50; she has to invest $20 in the necessary supplies (expendables) per day; energy costs are assumed to be only $4.00 per day; and she thinks she should be making $10 per hour for her time. Viewing this from a total (multifactor) productivity perspective, what is her productivity at present and with the new paint? Problem 4: How would total (multifactor) productivity change if using the new paint raised Ms. French’s material costs by $0.50
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