Management Accounting

4. Compute the merchandise pecuniary value for the following trine items. (a) ray of light Amstrong unframed soft touch ( rump speak to of print $ 12) $ 12 + $ (10/60 x 12) = $ 14 (b) John Elway print in steel frame, no snarl (base apostrophize of print $ 16) $ 16 + $ 4 + $ (10/60 x 12) + $ (20/60 x 21) = $ 29 (c) Lambeau cogitation print in woodlandwind instrument frame with mat (base embody of print $ 20) $ 20 + $ 6 + $ 4 + $ (10/60 x 12) + $ (30/60 x 21) = $ 42.50 5. weigh these items. (a) How frequently of the total tap damage is evaluate to be allocated to unframed prints? Total base cost of prints: 12 + 16 + 20 = $ 48 Total develop laboured manufacturing command processing command overhead time be: $ 375 cc (12 / 48) x 375 two hundred = $ 93 800 (b) How much of the total overhead cost is judge to be allocated to steel framed prints? (16 / 48) x 375 200 = $ 125 067 (c) How much of the total overhead cost is pass judgment to be allocated to wood framed prints? (20 / 48) x 375 200 = $ 156 333 (d) What per centum of the total overhead cost is expected to be allocated to unframed prints? (93 800 / 375 200) x 100 = 25% 6. Do you think the pith of overhead allocated to the three product categories is reasonable? Relate your answer to this question to your findings in previous(prenominal) questions. No.

It is not relatively allude compared to the quantity of each example of products produced. Usually, the much quantity is produced, the much overhead should incur. Put diversion rent, overheads like utilities, insurance and equipment tear down open fire be touched by the quantity produced. However, since diminished system and matting take aim complicated advancement packaging procedures as well as skilled employee, the amount of expected overhead to be allocated can be considered. 7. Anticipate problem problems that whitethorn result organize allocating manufacturing overhead based on the cost of the prints? The possibilities of problems that whitethorn excrete as follow: i. Manufacturing overhead incurred may not commute with the quantity produced for each category...If you hope to get a safe essay, order it on our website: Ordercustompaper.com

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