Problem 7: Activity Based Costing projects Tristan Corp has two projects. but is uncertain whether they will be profitable. The following are data The company has enough capacity for both available for the two projects; Contact Price Contract Quantity Material cost per unit Molding time per batch Batch size Annual Budgeted overhead as follows: Activity Molding Problem 8 Van Project 1 162,000 Batches Contracts 6,000 15 30 hours 600 units Cost Driver Molding hours Inspection Production Management Required; Calculate the activity costs and profits for each contract Project 2 600,000 12,000 20 45 hours 300 units Cost Driver Volume per year 12,000 900 120 Cost Pool 900,000 450,000 750,000
Problem 7: Activity Based Costing projects Tristan Corp has two projects. but is uncertain whether they will be profitable. The following are data The company has enough capacity for both available for the two projects; Contact Price Contract Quantity Material cost per unit Molding time per batch Batch size Annual Budgeted overhead as follows: Activity Molding Problem 8 Van Project 1 162,000 Batches Contracts 6,000 15 30 hours 600 units Cost Driver Molding hours Inspection Production Management Required; Calculate the activity costs and profits for each contract Project 2 600,000 12,000 20 45 hours 300 units Cost Driver Volume per year 12,000 900 120 Cost Pool 900,000 450,000 750,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter13: The Balanced Scorecard: Strategic-based Control
Section: Chapter Questions
Problem 8E: Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its...
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A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
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A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Problem 7: Activity Based Costing
Tristan Corp has two projects. The company has enough capacity for both
projects but is uncertain whether they will be profitable. The following are d
available for the two projects;
Contact Price
Contract Quantity
Material cost per unit
Molding time per batch
Batch size
Annual Budgeted overhead as follows:
Activity
Molding
Problem 8: Antl
Vangi
Project 1
162,000
6,000
15
30 hours
600 units
Cost Driver
Molding hours
Batches
Contracts
Project 2
600,000
12,000
20
45 hours
300 units
Inspection
Production Management
Required; Calculate the activity costs and profits for each contract
Cost Driver Volume
per year
12,000
900
120
Cost Pool
900,000
450,000
750,000
Re
1.
R123
Pro
Iram
over
direc
data
Dire
Dire
Dire
Ann
The
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