Study Appendix 12. In Exhibits 12.20 and 12.21, the rs represent resource- and activity-consumption rates. Why are
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Study Appendix 12. In Exhibits 12.20 and 12.21, the rs represent resource- and activity-consumption rates. Why are these rates important to managers looking for ideas for process improvements?
Exhibit 12.20
Exhibit 12.21
Transcribed Image Text:
Occupancy Square metres Account inquiry labour 44 Labour hours Account inquiry activity cost pool Supervisors 345,155.81 allocated costs +25,000 inquiries = 13.806 per inquiry Inquiries Correspondence activity cast pool Labour hours Residential Accounts 20,000 inquiries 1,440,000 printed lines Activity Printing machine Telecommunications Letters Printed lines 154,979.89 allocated costs +2,440,000 lines -0.06352 per line Printed lines 120,000 ALLOounts Account billing activity ............ Variable-cost resource Minutes Billing labour Labour hours LEGEND Cost object Gill-verifying Ishour source Paper Commercial Accounts 5,000 inquiries 1,000,000 printed lines D Labour hours Verification activity cost pool Food-cost resourc Billing verifying labour Rolls 93,291.17 allocated costs +20,000 accounts - 4.665 per account Accounts verified Labour hours 20,000 ounts Examples of cost-ainment patts for occupancy to residential object Computer D Transactions Connector Other resources I Printed I lines I Other activities cost pool T 1 94,073.16 allocated costs + 2,440,000 lines =0.03855 per line Printed lines
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Exhibits 1220 and 1221 as depicted seem to showcase activitybased costing ABC information for a companys processes The rs mentioned that represent res...View the full answer
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Related Book For
Introduction To Management Accounting
ISBN: 9780273737551
1st Edition
Authors: Alnoor Bhimani, Charles T. Horngren, Gary L. Sundem, William O. Stratton, Jeff Schatzberg
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