I would like to know all answer of question "P7-43B."

' Show Notebook Both Jobs 500 and 501 used $1,200 of direct materials. Wages and benefits total $30 per direct labour hour. Cortana Products prices its products at 130% of total manufacturing costs. Requirements El 9 1. Compute Cortana Products' current plantwide overhead rate. 2. Compute refined departmental overhead rates. 3. Which job (Job 500 or Job 501) uses more of the company's resources? Explain. 4 . Compute the total amount of overhead allocated to each job based on the current plantwide overhead rate. 5. Compute the total amount of overhead allocated to each job based on the departmental overhead rates. 6. Do both allocation systems accurately reflect the resources that each job used? Explain. 7. Compute the total manufacturing cost and sales price of each job based on the current plantwide overhead rate. 8. Based on the current (plantwide) allocation system, how much profit did Cortana Products think it earned on each job? Based on the departmental overhead rates and the sales price determined in Requirement 7, how much profit did it really earn on each job? 9. Compare and comment on the results you obtained in Requirements 7 and 8. \"i\" . 'j 3' .l i 1, (Learning Objective 2) Johnston's Office Department manufactures computer desks in its Brandon, Manitoba, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labour and manufacturing overhead). Its activities and related data follow: Budgeted Cost Allocation Cost Activity of Activity Base Allocation Rate Materials handling ................................. $ 300,000 Number of parts $ 0.60 Assembling ............................................ 2,500,000 Direct labour hours 13.00 Painting ................................................. 170,000 Number of painted desks 5.30 Show Notebook Q Activity Based Costing 445 ' Johnston's produced two styles of desks in March: the Standard desk and Unpainted El desk. Data for each follow: Total Total Total Direct Total Assembling Units Materials Number Direct Product Produced Costs of Parts Labour Hours Standard desk .............................................. 6,500 $98,000 120,500 6,300 Unpainted desk ............................................ 2,000 18,000 30,500 1,000 Requirements 1. Compute the perunit manufacturing product cost of Standard desks and Unpainted desks. 2. Premanufacturing activities, such as product design, were assigned to the Standard desks at $4 each and to the Unpainted desks at $3 each. Similar analyses were conducted of postmanufacturing activities such as distribution, marketing, and customer service. The postmanufacturing costs were $22 per Standard and $19 per Unpainted desk. Compute the full product costs per desk. 3. Which product costs are reported in the external financial statements? Which costs are used for management decision making? Explain the difference. 4. What price should Johnston's managers set for Standard desks to earn a $39 profit per desk? P7-44B Comprehensive ABC implementation (Learning Objectives 2 & 3) Gibson Networking develops software for internet applications. The market is very competitive, and Gibson Networking's competitors continue to introduce new products at low prices. Gibson Networking offers a wide variety of software, from simple programs that enable new users to create personal webpages to complex commercial search engines. Like most software companies, Gibson Networking's raw material costs are insignificant. n:i____ u_;..._