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Prepare the journal entry to enter labor costs in Work-in-Process Inventory and set up the rate and efficiency variances for labor.
Compute the variable manufacturing overhead spending and efficiency variances.
Provide the journal entries to record the materials price and quantity variances.
What is the difference between a cost center and a profit center? Between a profit center and an investment center?
What is the relationship of a standard cost system to the principle of management by exception?
Why are two variances, rather than one, used to measure and control materials and labor costs?
What is the major disadvantage of using ROI to evaluate the performance of investment centers?
What is the major advantage of using residual income to evaluate the performance of investment centers?
What is a variable manufacturing overhead efficiency variance, and how does it relate to the labor efficiency variance?
What does the volume variance measure, and how is this variance different from the other cost variances ?
Over the last 20 years, there have been many new developments in the area of activity-based costing.
What types of overhead costs might Microsoft incur that would be associated with its software products?
Hence, in 1997 the company decided to implement an activity-based costing (ABC) system to measure the costs of specific customers.
Would it be ethical to use direct labor hours if that were the basis used by other government contractors?
She returns from the conference and asks you to summarize the advantages and disadvantages of ABC.
Prepare a budget for payments to direct materials suppliers for the first half of 2009.
Prepare a direct labor budget in both hours and costs for each of the three months.
Linden keeps a minimal staff during the winter season and then expands its workforce substantially during the gardening season.
Prepare a journal entry for each of the transactions and show the T-accounts for Manufacturing Overhead and Work-in-Process Inventory.
Compute the number of equivalent units of output in terms of materials costs and labor and overhead (conversion) costs for June, assuming FIFO cost flow.
Compute the predetermined overhead rate at which manufacturing overhead costs will be applied to jobs.
Determine the ending balance in the work-in-process services account.
What is an appropriate allocation basis? Would adopting the suggestion be ethical?
E-Bay are able to pass the extra savings on to the consumer in the form of lower prices.