The Basic payroll subscription in QuickBooks: a. Automatically ...

[jhjkgdfhk]

The Basic payroll subscription in QuickBooks:
 a. Automatically creates payroll tax forms and reports
   b. Does not automatically create payroll tax forms and reports
   c. Is free from QuickBooks
   d. None of the above

Question 2

ABC, process costing.
 
  Parker Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here:
 
  Total manufacturing overhead costs are as follows:
 
  Required:
  1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product.
  2. Compute the manufacturing cost per unit for each product.
  3. How might Parker's managers use the new cost information from its activity-based costing system to better manage its business?

[ciecieme]

Answer to Question 1

b

Answer to Question 2

1. Rates per unit cost driver.
Activity Cost Driver Rate
Machining Machine-hours 375,000  (25,000 + 50,000)
= 5 per machine hour

Set up Production runs 120,000  (50 + 50)
= 1,200 per production run

Inspection Inspection-hours 105,000  (1,000 + 500)
= 70 per inspection hour

Overhead cost per unit:
Mathematical Financial
Machining: 5  25,000; 50,000 125,000 250,000
Set up: 1,200  50; 1,200  50 60,000 60,000
Inspection: 70  1,000; 70  500 70,000 35,000
Total manufacturing overhead costs 255,000 345,000
Divide by number of units  50,000 100,000
Manufacturing overhead cost per unit  5.10  3.45

2.
Mathematical Financial
Manufacturing cost per unit:
Direct materials
150,000  50,000 3.00
300,000  100,000 3.00
Direct manufacturing labor
50,000  50,000 1.00
100,000  100,000 1.00
Manufacturing overhead (from requirement 1) 5.10 3.45
Manufacturing cost per unit 9.10 7.45

3. Disaggregated information can improve decisions by allowing managers to see the details that help them understand how different aspects of cost influence total cost per unit. Managers can also understand the drivers of different cost categories and use this information for pricing and product-mix decisions, cost reduction and process-improvement decisions, design decisions, and to plan and manage activities. However, too much detail can overload managers who don't understand the data or what it means. Also, managers looking at per-unit data may be misled when considering costs that aren't unit-level costs.

[jhjkgdfhk]

Thank you

[ciecieme]

No problemo