Flight Security Devices (FSD) has introduced a just-in-time production process and is considering adopting lean accounting principles to support its new production philosophy. The company has two product lines: Mechanical Devices and Electronic Devices. Two individual products are made in each line. Product-line manufacturing overhead costs are traced directly to product lines and then allocated to the two individual products in each line. The company's traditional cost accounting system allocates all plant-level facility costs and some corporate overhead costs to individual products. The latest accounting report using traditional cost accounting methods included the following information (in thousands of dollars): Click the icon to view the accounting report) Click the icon to view further information) Read the requirements Requirement 1. What are the cost objects in FSD's lean accounting system? The cog More info - FSD ha Require compar What would you Use the amount piples. (Enter all FSD has determined that each of the two product lines represents a distinct value stream. It has also determined that out of the $165,000 (540,000+$30,000+$80,000+$15,000) plant-level facility costs, product A occuples 20% of the plant's square footage, product B occuples 20% product Coccupies 35%, and product Doccupies 15%. The remaining 10% of square footage is not being used. Finally, FSD has decided that in order to identify inefficiencies, direct material should be expensed in the period it is purchased, rather than when the material is used. According to purchasing records, direct material purchase costs during the period were as follows: Mechanical Devices Electronic Devices Product A Product 8 Product C Product D Direct material (purchases) $ 200 $ 130 $ 270 $ 75 Sales Costs Dird Dird Mail Dos Print Done Plai Value What would you compare this operating income against? Comment on your results, con nnnnn inname veinn Ann Anna ninnan han harmannine Flight Security Devices (FSD) has introduced a just-in-time production process and is considering adopting lean accounting principles to support its new production philosophy. The company has two product lines: Mechanical Devices and Electronic Devices. Two individual products are made in each line. Product-line manufacturing overhead costs are traced directly to product lines and then allocated to the two individual products in each line. The company's traditional cost accounting system allocates all plant-level facility costs and some corporate overhead costs to individual products. The latest accounting report using traditional cost accounting methods included the following information in thousands of dollars): (Click the icon to view the accounting report.) (Click the icon to view further information.) Read the requirements X Required Accounting report (in thousands of dollars) The cost FSD has would you Require compare Mechanical Devices Electronic Devices Product Product B Product C Product D $ 790 S 550 $ 960 $ 480 185 100 260 65 Sales Enter all Use the amounts 185 75 215 90 85 105 190 115 40 30 80 15 Sales Direct materials (based on quantity used) Direct manufacturing labor Manufacturing overhead (equipment lease, supervision, production control) Allocated plant-level facility costs Design and marketing costs Allocated corporate overhead costs Operating income 96 48 38 101 49 39 2 22 Costs Dired $ 175 $ 65 $ 150 160 $ Direg Mand Desi Plan Print Done Value st Flight Security Devices (FSD) has introduced a just-in-timo production process and is considering adopting loan accounting principles to Requirement 1. What are the cost objects in FSD's lean accounting system? The cost object in lean accounting is the FSD has identified the following area(s): Requirement 2. Compute operating income for the cost objects Identified in requirement 1 using lean accounting principles. What would you compare this operating income against? Comment on your results. Use the table below to compute operating income for the cost objects identified in requirement 1 using lean accounting principles. (Enter all amounts in thousands Mechanical Electronic Devices Devices Sales Costs Direct material Direct manufacturing labor Manufacturing overhead Design and marketing costs Plant facility costs Value stream operating income What would you compare this operating income against? Comment on your results. FSD's operating income using lean accounting principles should be compared against If the total plant-level costs are slightly higher than the total value stream costs for both Mechanical Devices and Electronic Devices and the difference between the total value-stream costs and the total plant-level costs is very small this would indicate that the main opportunity for improving efficiency to reduce costs and improve profitability is reducing Value-stream operating income analyses allocated corporate overhead costs because these costs be controlled or influenced by plant-level managers