Management Accounting

4. Compute the product monetary value for the following three items.

(a) ray of light Amstrong unframed print (base speak to of print $ 12)

$ 12 + $ (10/60 x 12) = $ 14

(b) John Elway print in steel frame, no mat (base cost of print $ 16)

$ 16 + $ 4 + $ (10/60 x 12) + $ (20/60 x 21) = $ 29

(c) Lambeau Field print in wood frame with mat (base cost of print $ 20)

$ 20 + $ 6 + $ 4 + $ (10/60 x 12) + $ (30/60 x 21) = $ 42.50

5. Calculate these items.

(a) How much of the total belt cost is evaluate to be allocated to unframed prints?

Total base cost of prints: 12 + 16 + 20 = $ 48
Total bud laboured manufacturing overhead costs: $ 375 cc

(12 / 48) x 375 200 = $ 93 800

(b) How much of the total overhead cost is judge to be allocated to steel framed prints?

(16 / 48) x 375 200 = $ 125 067

(c) How much of the total overhead cost is expected to be allocated to wood framed prints?

(20 / 48) x 375 200 = $ 156 333

(d) What per centum of the total overhead cost is expected to be allocated to unframed prints?

(93 800 / 375 200) x 100 = 25%

6. Do you think the nub of overhead allocated to the three product categories is reasonable? Relate your reception to this question to your findings in previous questions.

No.



It is not relatively advert compared to the quantity of each type of products produced. Usually, the much quantity is produced, the more overhead should incur. Put aside rent, overheads like utilities, insurance and equipment charge can be affected by the quantity produced.

However, since skeletal system and matting require complicated packaging packaging procedures as well as skilled employee, the amount of expected overhead to be allocated can be considered.

7. Anticipate business problems that whitethorn result form allocating manufacturing overhead based on the cost of the prints?

The possibilities of problems that whitethorn occur as follow:

i. Manufacturing overhead incurred may not vary with the quantity produced for each category...If you want to get a full essay, order it on our website: Orderessay



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