MANAGERIAL ACCOUNTING (LL) W/CONNECT >C<
MANAGERIAL ACCOUNTING (LL) W/CONNECT >C<
17th Edition
ISBN: 9781264384150
Author: Garrison
Publisher: MCG CUSTOM
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Chapter 12, Problem 6Q
To determine

Concept Introduction:

The balanced scorecard is the strategic management metric to measure the effectiveness of the internal functions of the business and their outcomes and improve the functions if necessary. The performance measures included in the balanced scorecard must have a cause-and-effect relationship with the strategic goals of the company.

To explain: The reasons for linking together the measures are included in the balanced scorecard in the form of an if-then hypothesis statement.

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Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $16,800, direct labor $10,080, and manufacturing overhead $13,440. As of January 1, Job 49 had been completed at a cost of $75,600 and was part of finished goods inventory. There was a $12,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $102,480 and $132,720, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $75,600 on account. 2. Incurred factory labor costs of $58,800. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,080; and various other…
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