Managerial Accounting Essay Example | Topics and Well Written Essays - 1000 words - 1

Administrative Accounting - Essay Example This cash would be named money until the pay rates are really paid. By then, pay rates would happen upon a particular pay segment on the monetary record or may even be viewed as an operational expense and taken of the asset report out and out. 2) a) The foreordained overhead rate for the year is $5 per direct work hour. (Assembling Overhead/Direct Labor-hours) ($80,000/16,000) = $5 per direct work hour. b) The measure of overhead charged to employments during the year is $75,000. (Real immediate work hours * Predetermined overhead rate) (15,000 * $5) = $75,000 c) The measure of underapplied or overapplied overhead for the year is $3,000 underapplied. (Real overhead expenses †Applied overhead expenses) ($78,000 - $75,000) = $3,000 d) The unit cost that would show up hands on cost sheet for Job #315 is $59. (Direct Materials + Direct Labor + Overhead applied)/100. ($1,500 + $2,400 + $2,000) = $5,900. $5,900/100 = $59. 3) $20,000 + $201,000 = $221,000. $221,000 - $35,000 = $186,000 4) a) TVC = $118,008/2,400 = $49.17. $49.17 * 2,500 = $122,925 b) TFC = $9,000/2,400 = $3.75. $3.75 * 2,500 = $9,375 c) TC = $122,925 + $9,375 = $132,300 d) AVC = $122,925/2,500 = $49.17 e) AFC = $9,375/2,500 = $3.75 f) ATC = $49.17 + $3.75 = $52.92 5) Sales = Variable costs + Fixed costs + Desired Profit $170Q = $39.10 + $641,410 + $65,450 $130.90 = $706,860 Q = $706,860/$130.90 per unit Q = 5,400 units 6) The retention costing net working pay for a year ago was $66,600. Stock expanded by 900 units. Fixed assembling overhead expense per unit was $3. 900 units * $3 = $2,700. Retention cost rises to variable costing net working salary times the all out stock expense. $63,000 + $2,700 = $66,600. 7) Activity-based costing is utilized to distinguish exercises in an association and appoints expenses to an action dependent on the real utilization of an action. The advantage to this sort of costing model is that every action is isolated from the other and it is simpler to see which territ ories are performing admirably and which zones are performing not all that well. The five degrees of an action based cost framework commonly are unit-level exercises, clump level exercises, item level exercises, association continuing exercises, and client level exercises. The initial three degrees of exercises are for the most part various phases of creation. Each phase of creation is separated so it very well may be seen what can be decreased. The fourth and fifth exercises have more to do with the board of the association. Association continuing exercises are those that influence the representatives of an association, while client level exercises manage how clients see an association to