Standard Cost : The cost which is estimated by the management, this cost includes the cost of process and resources used at the time of manufacturing. This cost is ultimately compared with the actual cost incurred. To identify: Purpose of using standard cost.

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Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 8, Problem

To determine

Standard Cost:

The cost which is estimated by the management, this cost includes the cost of process and resources used at the time of manufacturing. This cost is ultimately compared with the actual cost incurred.

To identify: Purpose of using standard cost.

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Danforth Industries had the following activities, traceable costs, and physical flow of driver units: • • Technical support (hours): $380,000 total cost, 10,000 hours Shipping processing (orders): $275,000 total cost, 3,600,000 orders • Account reconciliation (accounts): $145,000 total cost, 38,000 accounts Customer correspondence (letters): $50,000 total cost, 4,800 letters The above activities are used by Division A and Division B as follows: Technical support hours: 2,500 hours (Division A), 4,500 hours (Division B) Shipping processing orders: 480,000 orders (Division A), 210,000 orders (Division B) Account reconciliation accounts: 9,500 accounts (Division A), 8,200 accounts (Division B) Customer correspondence letters: 1,100 letters (Division A), 1,600 letters (Division B) How much of the technical support cost will be assigned to Division A?

Provide correct solution and accounting question

Glenwood Industries made a $310,000 investment in new machinery. Assuming the company's margin is 6.5%, what income will be earned if the investment generates $600,000 in additional sales?

Answer 2

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Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 8, Problem

To determine

Standard Cost:

The cost which is estimated by the management, this cost includes the cost of process and resources used at the time of manufacturing. This cost is ultimately compared with the actual cost incurred.

To identify: Purpose of using standard cost.

Expert Solution & Answer

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Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 8, Problem

To determine

Standard Cost:

The cost which is estimated by the management, this cost includes the cost of process and resources used at the time of manufacturing. This cost is ultimately compared with the actual cost incurred.

To identify: Purpose of using standard cost.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 8, Problem

To determine

Standard Cost:

The cost which is estimated by the management, this cost includes the cost of process and resources used at the time of manufacturing. This cost is ultimately compared with the actual cost incurred.

To identify: Purpose of using standard cost.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem

To determine

Standard Cost:

The cost which is estimated by the management, this cost includes the cost of process and resources used at the time of manufacturing. This cost is ultimately compared with the actual cost incurred.

To identify: Purpose of using standard cost.

Answer 6

Chapter 8, Problem

To determine

Standard Cost:

The cost which is estimated by the management, this cost includes the cost of process and resources used at the time of manufacturing. This cost is ultimately compared with the actual cost incurred.

To identify: Purpose of using standard cost.

Answer 7

Chapter 8, Problem

To determine

Standard Cost:

The cost which is estimated by the management, this cost includes the cost of process and resources used at the time of manufacturing. This cost is ultimately compared with the actual cost incurred.

To identify: Purpose of using standard cost.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

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Answer 11

Ch. 8 - Prob. 1MCQ Ch. 8 - Prob. 2MCQ Ch. 8 - Prob. 3MCQ Ch. 8 - A Company’s standard for a unit of its single...Ch. 8 - Prob. 5MCQ Ch. 8 - Prob. 1DQ Ch. 8 - Prob. 2DQ Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ

Standard Cost : The cost which is estimated by the management, this cost includes the cost of process and resources used at the time of manufacturing. This cost is ultimately compared with the actual cost incurred. To identify: Purpose of using standard cost.

Concept explainers

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Standard Cost:

The cost which is estimated by the management, this cost includes the cost of process and resources used at the time of manufacturing. This cost is ultimately compared with the actual cost incurred.

To identify: Purpose of using standard cost.

Want to see the full answer?

Chapter 8 Solutions

Standard Cost : The cost which is estimated by the management, this cost includes the cost of process and resources used at the time of manufacturing. This cost is ultimately compared with the actual cost incurred. To identify: Purpose of using standard cost.

Concept explainers

Videos

Standard Cost: The cost which is estimated by the management, this cost includes the cost of process and resources used at the time of manufacturing. This cost is ultimately compared with the actual cost incurred. To identify: Purpose of using standard cost.

Want to see the full answer?

Chapter 8 Solutions

Standard Cost:

The cost which is estimated by the management, this cost includes the cost of process and resources used at the time of manufacturing. This cost is ultimately compared with the actual cost incurred.

To identify: Purpose of using standard cost.