AUDITING+ASSURANCE 12MONTH ACCESS CARD
AUDITING+ASSURANCE 12MONTH ACCESS CARD
17th Edition
ISBN: 9780135635131
Author: ARENS
Publisher: WILEY
Question
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Chapter 17, Problem 28DQP

(a)

To determine

Select the random PPS sample of 10 items

(b).

To determine

Select 10 samples using PPS and to identify the units associated by using a starting point of 1857.

 (c).

To determine

Explain the sample size which will be included regardless of starting point and is it also true for random PPS sampling

(d).

To determine

Discuss the method which is preferable in terms of ease of selection in the case

(e).

To determine

Discuss the use of MUS

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The Spice Saga has two production departments, Assembly and Finishing. Each department calculates its own predetermined overhead rate and applies manufacturing overhead throughout the year. The following information was used to calculate overhead application rates:      Assembly    Finishing    TotalEstimated overhead    $ 800,000    $ 420,000    $ 1,220,000Direct labor hours    50,000    30,000    80,000Machine hours    16,000    8,000    24,000Overhead information for Job #687 is as follows:      Assembly    Finishing    TotalDirect labor hours    100    125    225Machine hours    30    18    48                                                                                                                                               a. Assume that The Spice Saga uses direct labor hours to apply overhead in both production departments How  much overhead will be applied to Job #687? Note: Round your answer to 2 decimals.b. Assume that The Spice Saga uses machine hours to apply…
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