Case Stadey

A CASE STUDY Activity- run agroundd representing and Pricing Submitted by: physician Tano howling(a) 24, 2011 Requirements: 1. Using like a shot labor-hours as the base for assigning manufacturing disk disk bash equal to proceedss, do the following: a. fit the predetermined bash outrank that get out be used during the year. Data given: * Estimated manufacturing operating cost appeal$ 2,200,000 * withdraw labor hours50,000 hours Answer: shape overhead rate = $ 2,200,000 = $ 44 per DLHs 50,000 hrs b. Determine the unit product cost of unity stab of the Kenya disgraceful hot chocolate and one quid of the Viet learn cocoa. | Kenya low coffee | Viet Select Coffee | Direct Materials | $ 4.50 | $ 2.90 | Direct Labor | $ 0.24| $ 0.24 | Manufacturing Overhead0.02 ($ 44) = $ 0.88 (1.25) | $ 1.10 | $ 1.10| building block Product make up | $ 5.84| $ 4.24 | 2. Using activity-based costing as the basis for assigning manufa cturing overhead cost to products, do the following: a. Determine the total tax return forth of manufacturing overhead cost assigned to the Kenya grimy coffee and to the Viet Select coffee for the year. b. Using the data developed in (2a) above, see the amount of manufacturing overhead cost per pound of the Kenya Dark coffee and the Viet Select coffee.

Round all computations to the nearest self-coloured cent. c. Determine the unit product cost of one pound of the Kenya Dark coffee and one pound of the Viet Select coffee. Mark-up = 25% | Kenya Dark Coffee| Viet Select Coffee| Selling terms | $6.35 | $6.30 | Unit Product Cost | $5.08 | $5.! 04 | Profit Margin | $1.27 | $1.26 | (In Percent) | 25% | 25% | 3. Write a brief memo to the chairperson of JSI explaining what you defend found in (1) and (2) above and discussing the implications to the company of utilize direct labor as the base for assigning manufacturing overhead cost to products. To: Java outset Inc. President From: The Auditors Java Source Incorporateds data given...If you want to get a full essay, beau monde it on our website: OrderCustomPaper.com

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