Managerial Accounting
Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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Chapter 7, Problem 9Q
To determine

Activity based costing:

Activity based costing is the new method which measures the overhead with respect to the activity. Under traditional method activity is measured with respect to volume.

How can the activity rates (i.e. cost per activity) for the various activities be used to target process improvements?

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Lambert Manufacturing uses a predetermined overhead rate of $20.50 per direct labor hour. This predetermined rate was based on a cost formula that estimates $252,500 of total manufacturing overhead for an estimated activity level of 12,300 direct labor hours. The company incurred actual total manufacturing overhead costs of $246,000 and 11,700 total direct labor hours during the period. Determine the amount of underapplied or overapplied manufacturing overhead for the period.
General accounting
Your firm has net income of $420 on total sales of $1,600. Costs are $900, and depreciation is $150. The tax rate is 28%. The firm does not have interest expenses. What is the operating cash flow (OCF)? A) $570 B) $560 C) $420 D) $600

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Managerial Accounting

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