nter cengagenov X My Home * CengageNOWv2 | Online teach x Target Costing | Formula | Exar X + signment/takeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator=D&inprogress3Dfalse eBook Calculator E Print Item Activity-Base Usage Activity Rate Activity Activity (hrs. per unit) X per Hour Cost Motor assembly 1.50 $20 $30.00 Final assembly 1.00 18 18.00 Testing 0.25 22 5.50 Rework 0.40 22 8.80 Moving 0.20 15 3.00 Activity cost per unit $65.30 All of the activity costs are related to labor. Management must remove $2.00 of activity cost from the product in order to remain competitive. Rework involves disassembling and repairing a unit that fails testing. Not all units require rework, but the average is 0.40 hours per unit. Presently, the testing is done on the completed assembly; but much of the rework has been related to motors, which can be tested independently prior to adding the motor to the treadmill during final assembly. Thus, motor issues can be diagnosed and solved without having to disassemble the complete treadmill. This change will reduce the average rework per unit by one-quarter. a. Determine the new activity cost per unit under the rework improvement scenario. Round your answer to 2 decimal place. Activity cost per unit $ 0.40 b. If management had the choice of doing the rework improvement in (a) or cutting the moving activity in half by improving the product flow, which decision should be implemented? Why? 1. The cost reduction under moving activity is more than rework improvement, hence the management should select moving activity. 2. The cost reduction under rework improvement is more than the moving activity, hence the management should select rework improvement. 3. The cost reduction under both scenarios is same, the management can select either of them. Check My Work Previous Next 9:22 PM 4/17/202 FS F6 F7 F8 F9 F10 Home F11 F12 End Insert పాస & Back

Q: Distinguish between Period cost and Product cost? Give two examples of each cos

A: Classification of costs on the basis of functions:- 1. Product Cost 2. Period Cost

Q: Explain the role of unit cost in task order pricing.

A: Task orders refer to the contract made for specific and separate orders. These are the small…

Q: Give detail definition on operational cost and explain in detail how the operational cost is…

A: Introduction:- The following definition of operational cost as follows under:- Operating costs are…

Q: discuss the various costing methods?

A: Various Methods of costing are as follows: 1) Unit Costing 2) Operating Costing 3) Contract Costing…

Q: Which of the following represent the right process order for cost allocation: Select one: O a.…

A: Cost Allocation is the process of identifying and assigning costs to the various cost objects. These…

Q: how do I find direct cost per unit

A: Direct Cost A direct cost is a price that is directly associated with the production of particular…

Q: how activity based costing has been discovered?

A: Activity-based costing, often known as ABC, is a way of allocating overhead and indirect expenses to…

Q: why it is necessary to monitor cost per product or unit operating cost in order to determine the…

A: Cost refers to the value in money to be incurred for running the business or day-to-day activities…

Q: What is activity base cost management?

A: Activity-based costing commonly referred to as ABC is a part of cost accounting. Cost accounting is…

Q: A total cost equation can be used to predict future costs for various activity levels. Write the…

A: Concept The total cost is the sum of variable cost and fixed cost incurred For example if variable…

Q: Assign costs to unitsusing the weighted-averagemethod.

A: Cost:   It refers to the economic value incurred by an organization for manufacturing a product or…

Q: What is the relationship between total carrying cost and totalordering cost at the EOQ?

A: It indicates an inverse relationship between the cost of ordering and the cost of holding at…

Q: Give me an example How Efficient are Graphic Techniques - Scatter Charts for Estimating Costs?

A: Meaning of Scatter Graph Method Scatter graph method is a graphical technique of separating fixed…

Q: What process is used to assign costs in an ABC system? Provide numerical example. I want the…

A: ABC  or Activity based costing system- It is  based upon the  fact that activities cause costs and…

Q: Need help to calculate the production cost per unit

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: How do you get total of period cost?

A: Period Costs are not directly associated with the finished products manufactured, rather associated…

Q: What are the Step-Cost Behaviors?

A: The objective of this question is to understand the concept of step-cost behaviors in the field of…

Q: How many cost pools are in an activity-based costing system?

A: Activity-Based Costing: Activity-Based Costing refers to the allocation of the factory overheads…

Q: How are joint costs allocated? Explain and analyze using numerical example.

A: Joint Costs In business different costs are incurred in the production process, but in certain…

Q: Explain why unit cost is important in the task order costing method.

A: Task Order costing method is used to determine the cost of each order/job/task. This method of…

Q: Define unit costs.

A: Unit cost is the cost incurred by the company in the production, storage and selling of one unit of…

Q: Describe the concept of the INITIAL DIRECT COSTS?

A: Definition:   Initial direct costs: Initial direct costs refer to the costs that a lessor incurs…

Q: do you determine the production

A:

Q: Describe how total variable costs and unit variable costs behave as the level of activity increases?

A: Variable cost varies with the changing level of activity i.e. if the activity increases the variable…

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.