EBK MANAGERIAL ACCOUNTING: THE CORNERST
7th Edition
ISBN: 9781337516150
Author: Heitger
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Textbook Question
Chapter 13, Problem 29BEB
Cassara, Inc., had the following quality costs for the years ended December 31, 20X1 and 20X2:
At the end of 20X1, management decided to increase its investment in control costs by 40% for each category’s items, with the expectation that failure costs would decrease by 25% for each item of the failure categories. Sales were $ 12,000,000 for both 20X1 and 20X2.
Required:
- 1. Calculate the budgeted costs for 20X2, and prepare an interim quality performance report.
- 2. Comment on the significance of the report. How much progress has Cassara made?
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Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs.Rammazzotti, Inc., had the following budgeted data:
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26,000
Budgeted fixed overhead for the year:
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$ 800
Depreciation
2,000
Rent
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Budgeted variable costs per unit:
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$0.15
Direct labor
0.20
Supplies
0.02
Indirect labor
0.05
Power
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The following actually occurred:
Actual unit sales for the year
24,000
Actual unit production for the year
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Actual fixed overhead for the year:
Supervision
$ 850
Depreciation
2,000
Rent
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Direct labor
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530
Indirect labor
1,250
Power
470
The total budgeted costs for the year were
a.$14,340.
b.$11,440.
c.$13,510.
d.$13,460.
Chapter 13 Solutions
EBK MANAGERIAL ACCOUNTING: THE CORNERST
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