Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 12, Problem 12.29E

1.

To determine

To calculate: The amount and cost of unused software-implementation support capacity

Given information:

Actual units of capacity at starting of 2013 is 70 units

Actual job units used to produce the output in 2013 is 55 units.

2.

To determine

To calculate: The maximum amount of cost that C could save in 2013 by downsizing software-implementation support capacity.

Given information:

Price per unit of capacity is $3,600

Downsizing the software-implementation support capacity by 15 units

3.

To determine

To identify: The reason not to downsize the capacity

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