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Concept introduction:
Activity-based costing:
It is a method that identifies activities in an association and assigns the cost of each activity to all the goods and services according to the real consumption by each.
Requirement 1:
Plant wide
Concept introduction:
Activity-based costing:
It is a method that identifies activities in an association and assigns the cost of each activity to all the goods and services according to the real consumption by each.
Requirement 2:
To explain:
By using plant wide overhead rate evaluate total cost per unit for two products if direct material and labour for extra fine and family style is $6 and $5/case.
Concept introduction:
Activity based costing:
It is a method that identifies activities in an association and assigns the cost of each activity to all the goods and services according to the real consumption by each.
Requirement 3:
Gross profit for extra fine and family style if market price $18 per case and $9 per case.
Concept introduction:
Activity based costing:
It is a method that identifies activities in an association and assigns the cost of each activity to all the goods and services according to the real consumption by each.
Requirement 4:
Total cost per case for each product if direct material and direct labour for extra fine and family style is $6 per case and $5 per case.
Concept introduction:
Activity based costing:
It is a method that identifies activities in an association and assigns the cost of each activity to all the goods and services according to the real consumption by each.
Requirement 5:
If market price is $18 for extra fine and $9 for family style determining its gross profit.
Concept introduction:
Activity based costing:
It is a method that identifies activities in an association and assigns the cost of each activity to all the goods and services according to the real consumption by each.
Requirement 6:
Pricing analysis be improved if the corporate used departmental rate based on machine hours in department 1 and number of cases in department 2 instead of activity based costing.
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Chapter 4 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
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