Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 13, Problem 15E
To determine
Prepare a Pareto Chart for the given information.
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Classify each of the following as either one-time or recurring costs: a. training personnel b. initial programming and testing c. systems design d. hardware costs e. software maintenance costsf. site preparation g. rent for facilities h. data conversion from old system to new system i. insurance costs j. installation of original equipment k. hardware upgrades
Define value chain and classification of costs for “Utility costs for the plant assembling the Latitude computer line of products.”
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Chapter 13 Solutions
Managerial Accounting
Ch. 13 - What is the benefit of the lean philosophy?Ch. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Why would a lean manufacturer strive to produce...Ch. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 1BECh. 13 - Prob. 2BECh. 13 - Prob. 3BECh. 13 - Prob. 4BECh. 13 - Prob. 5BECh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Lean principles Rag Swag Inc. manufactures various...Ch. 13 - Prob. 4ECh. 13 - Reduce setup time Vernon Inc. has analyzed the...Ch. 13 - Compute lead time Jackson Fabricators Inc....Ch. 13 - Calculate lead time Williams Optical Inc. is...Ch. 13 - Prob. 8ECh. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Lean accounting Modern Lighting Inc. manufactures...Ch. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 17ECh. 13 - Prob. 18ECh. 13 - Process activity analysis The Brite Beverage...Ch. 13 - Prob. 20ECh. 13 - Prob. 21ECh. 13 - Lean principles Bright Night, Inc., manufactures...Ch. 13 - Prob. 2PACh. 13 - Lean accounting Dashboard Inc. manufactures and...Ch. 13 - Pareto chart and cost of quality report for a...Ch. 13 - Prob. 1PBCh. 13 - Lead time Master Chef Appliance Company...Ch. 13 - Lean accounting Com-Tel Inc. manufactures and...Ch. 13 - Pareto chart and cost of quality report for a...Ch. 13 - Prob. 1MADCh. 13 - Prob. 2MADCh. 13 - Prob. 3MADCh. 13 - Prob. 4MADCh. 13 - Ethics in Action In August, Lannister Company...Ch. 13 - Prob. 3TIFCh. 13 - Prob. 1CMACh. 13 - Prob. 2CMACh. 13 - In measuring the cost of quality, which one of the...Ch. 13 - Prob. 4CMA
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- For a company that produces desktop computers, would memory chips be considered a direct or an indirect materials cost of each computer produced?arrow_forwardWhich of the following costs would be included as part of the factory overhead costs of a computer manufacturer? A.The cost of memory chips B.Depreciation of testing equipment C.Wages of computer assemblers D. The cost of disk drivesarrow_forwarddarrow_forward
- Value chain classifications Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Cost Item Answer Business Function a. Research and development b. Design c. Production d. Marketing e. Distribution t Customer service 1. Labor time to repair products under warranty 2. TV commercial spots 3. Labor costs of filling customer orders 4. Testing of competitor's product 5. Direct manufacturing labor costs 6. Development of order tracking system for the Internet 7. Printing cost of new product brochures 8. Hours spent designing childproof bottles 9. Training costs for representatives to staff the customer call center 10. Installation of robotics equipment in manufacturing plantarrow_forwardConvert the accompanying database to an Excel table to find: a.The total cost of all orders. b. The total quantity of airframe fasteners purchased. c. The total cost of all orders placed with Manley Valve.arrow_forwardValue chain classifications Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Business Function Cost Item Answera. Research and development 1. Labor time to repair products under warrantyb. Design 2. TV commercial spotsc. Production 3. Labor costs of fi lling customer ordersd. Marketing 4. Testing of competitor’s producte. Distribution 5. Direct manufacturing labor costsf. Customer service 6. Development of order tracking system forthe Internet7. Printing cost of new product brochures8. Hours spent designing childproof bottles9. Training costs for representatives to staff the customer call center10. Installation of robotics equipment in manufacturing plantarrow_forward
- ell Computer incurs the following costs: LOADING... (Click the icon to view the costs.) Requirement Classify each of the cost items (a-h) into one of the business functions of the value chain. Cost Item Value Chain Business Function a. Utility costs for the plant assembling the Latitude computer line of products b. Distribution costs for shipping the Latitude line of products to a retail chain c. Payment to David Newbury Designs for design of the XPS 2-in-1 laptop d. Salary of computer scientist working on the next generation of servers e. Cost of Dell employees' visit to a major customer to demonstrate Dell'sarrow_forwardFollowing are selected costs of a company that manufactures computer chips. Classify each as either a product cost or a period cost. Then classify each of the product costs as direct material, direct labor, or overhead. 1. Plastic boards used to mount chips 2. Advertising costs 3. Factory maintenance workers’ salaries 4. Real estate taxes paid on the sales office 5. Real estate taxes paid on the factory 6. Factory supervisor salary 7. Depreciation on factory equipment 8. Assembly worker hourly pay to make chipsarrow_forwardMatch the costs for Oracle in producing computer servers to the appropriate cost types below.A. Raw MaterialsB. Direct LaborC. Overhead CostD. N/A1. Employee Wages for Soldering electronic pieces ________________Why? ________________________________________________________________________________________________________________________________________2. Sales Commissions for Salespersons ________Why? ________________________________________________________________________________________________________________________________________3. Soldering Materials purchased in bulk at the beginning of the year ________Why? ________________________________________________________________________________________________________________________________________4. Motherboards and Processors ________________Why? ________________________________________________________________________________________________________________________________________5. Salaries for the supervisor overseeing the…arrow_forward
- Cost drivers and functions. The representative cost drivers in the right column of this table are randomized so they do not match the list of functions in the left column. Representative Cost Driver A Number of imvoices sent B. Number of purchase orders C. Number of units manufactured D. Number of computers on the network E Number of employees hired F. Number of bills received from vendors G. Number of pallets moved Function 1. Accounts payable 2. Recruiting 3. Network Maintenance 4. Production 5. Purchasing 6. Warehousing 1. Billing 1. Match each function with its representative cost driver. 2 Give a second example of a cost driver for each function.arrow_forwardAll applicable Exercises are available with McGraw-Hill’s Connect™Accounting.Cost classifications For each of the following costs, check the column(s) that most likely apply:Cost Variable FixedWages of assembly-line workersDepreciation—plant equipmentGlue and threadShipping costsRaw materials handling costsSalary of public relations managerProduction run setup costsPlant utilitiesElectricity cost of retail storesResearch and development expensearrow_forwardAppliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Prepare an income statement under both the absorption and variable costing methods along with a reconciliation between the two statements.arrow_forward
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