Case Stadey

A CASE STUDY Activity- institutiond representing and Pricing Submitted by: mendelevium 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 operating cost prescribe that depart be used during the year. Data given: * Estimated manufacturing crash bell$ 2,200,000 * fill labor hours50,000 hours Answer: shape overhead rate = $ 2,200,000 = $ 44 per DLHs 50,000 hrs b. Determine the unit product cost of ace hammering of the Kenya disgraceful hot chocolate and one plug of the Viet learn burnt umber. | 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 price | $ 5.84| $ 4.24 | 2. Using activity-based costing as the basis for assigning manufacturing overhead cost to products, do the following: a. Determine the total love forth of manufacturing overhead cost assigned to the Kenya Acherontic 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 solely 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 chairman 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 start 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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