KEYBOARDS ARE US, INC. Create a spreadsheet with an output section that:

(a) determines the overhead application rate per direct labor hour under conventional costing,

(b) determines the total cost to manufacture one unit electronic keyboard using conventional costing (show

material, labor and overhead separately to enhance manager usefulness)

(c) determines the total cost to manufacture one unit digital piano using conventional costing (show material,

labor and overhead separately to enhance manager usefulness) as well as

(d) the current per-unit gross profit generated by the sale of an electronic keyboard, and (e) the current per-unit gross profit generated by the sale of a digital piano. Then (f) refer to your spreadsheet in your formal memo to Daniel as you explain what conventional (i.e. traditional) costing is, (g) why it has been popular over the years, but also (h) why it might not be an accurate way to assign overhead costs to products. Create a spreadsheet with an output section that:

(i) determines the six overhead application rates to use under activity-based costing (be sure to label these!) (j) determines the total cost to manufacture one unit electronic keyboard using activity-based costing (show

material, labor and overhead separately to enhance manager usefulness)

(k) determines the total cost to manufacture one unit digital piano using activity-based costing (show material,

labor and overhead separately to enhance manager usefulness)

(L) calculates a suggested new selling price for each item based on recent industry reports that indicate most

companies similar to ours determine selling price by taking cost and adding 20 percent of cost as markup.

Then add to your formal memo to Daniel an explanation of (m) how activity-based costing results in a more accurate allocation of overhead costs to products. Be sure to include (n) other benefits of adopting activity- based costing, and (o) one disadvantage to adopting activity-based costing. Finally, (p) make a recommendation to Daniel as to whether you think the firm should adopt activity-based costing AND justify your position. Be sure to include a few lines offering additional assistance upon request and providing your contact information in the form of an email address or phone number. (You can use made-up contact information for this project . . . I mostly want you to have practice explaining accounting information to a coworker using written communication.) This is a formal business documentplease write your memo in a professional format and tone. Create a spreadsheet with an output section that:

(q) calculates the cost of Job #400 (manager will want to see labels/detail on the types of costs included) ( r) calculates the cost of Job #401 (manager will want to see labels/detail on the types of costs included) (s) calculates the amount of overapplied or underapplied overhead (be sure to label which)

(t) calculates the ending balance of Work-in-Process Inventory (provide detail with Job number)

(u) calculates the ending balance of Finished Goods (provide detail with Job number)

(v) calculates the ending balance of Cost of Goods Sold (provide detail with Job number)

Company: KEYBOARDS ARE US, INC. You are a middle manager of Keyboards Are Us, Inc., a manufacturer and seller of electronic keyboard instruments, digital pianos, and other musical electronics. You are primarily responsible for two products sold by Keyboards Are Us, Inc., made in Wayne, NE. One is a standard electronic keyboard that sells for $920 and in constructed from medium-grade materials. The other model is a customized digital piano. The digital piano sells for $1,275. Both instruments require 15 hours of direct labor to produce, but the digital piano is manufactured by more experienced workers who are paid at a higher rate. Selected information regarding sales, production, and cost information for last year is as follows: The company allocates overhead costs using conventional costing using direct labor hours. You are concemed that the conventional cost-allocation system the company is using may not be generating accurate information so the resulting sales prices may also be improperly determined. You decide to perform some computations and report your results to your superior, Daniel Franklin. Create a spreadsheet with an output section that: (a) determines the overhead application rate per direct labor hour under conventional costing. (b) determines the total cost to manufacture one unit electronic keyboard using conventional costing (show material, labor and overhead separately to enhance manager usefulness) (c) determines the total cost to manufacture one unit digital piano using conventional costing (show material, labor and overhead separately to enhance manager usefulness) as well as (d) the current per-unit gross profit generated by the sale of an electronic keyboard, and (e) the current per-unit gross profit generated by the sale of a digital piano. Then (f) refer to your spreadsheet in your formal memo to Daniel as you explain what conventional (i.e. traditional) costing is, (g) why it has been popular over the years, but also (h) why it might not be an accurate way to assign overhead costs to products. While you were working, the comptroller (i.e. head accountant) of the company. Sharon Garvin, provides you with additional information that you requested from her to be used in activity-based costing: Create a spreadsheet with an output section that: (i) determines the six overhead application rates to use under activity-based costing (be sure to label thesel) (j) determines the total cost to manufacture one unit electronic keyboard using activity-based costing (show material, labor and overhead separately to enhance manager usefulness) (k) determines the total cost to manufacture one unit digital piano using activity-based costing (show material, labor and overhead separately to enhance manager usefulness) L ) calculates a suggested new seling price for each item based on recent industry reports that indicate most companies similar to ours determine selling price by taking cost and adding 20 percent of cost as markup. Then add to your formal memo to Daniel an explanasion of (m) how activity-based costing resuls in a more accurate allocation of overhead costs to products. Be sure to include (n) other benefits of adopting activitybased costing. and (o) one disadvantage to adopting activity-based costing. Finally, (p) make a recommendation to Daniel as to whether you think the firm should adopt activity-based costing AND justify your position. Be sure to include a few lines offering additional assistance upon request and providing your contact information in the form of an email address or phone number. (You can use made-up contact information for this project... I mostly want you to have practice explaining accounting information to a coworker using written communication.) This is a formal business documentplease write your memo in a professional format and tone. This month, you have been working remotely with Jall Journal on two batches (i.e. Job 1400 and 401 ) of new products developed by the company at facilities in Minneapolis. These musical electronics are being made in response to special, customized orders from two different touring bands. You and Jill will report the results to Robin Revenue, who managers the New Products Division. Jal's part was to determine costs incurred this month that were related to the two jobs. Your part is to put together the final report. Jils costs and other relevant infomation are as follows: (continued, next page) Materials requisitioned: $4,300 for Job #$00 and $5,400 for Job $401 and $360 for indirect materials. Labor used: 1,220 hours for Job $400 and 1,300 hours for Job 4401 and 205 hours for indirect labor. (Assume a labor rate of $23 per hour for all of these workers.) In addition, the factory supervisor who oversaw these operations earned $5.800 during the period. Rent and utilities for the factory used for this production for the period were $3.325 and $780 respectively. Depreciation on faciory equipment was $2,050 for the period. Manufacturing overhead was applied at a rate of $7.05 per direct labor hour. Job #400 was completed this month and sold. The selling price was 140% of manufactured cost for the job. Job #401 still needs to be finished and packaged so is not done. Any overapplied or underapplied overhead should be closed directly to Cost of Goods Sold for the period. Create a spreadsheet with an output section that: (q) calculates the cost of Job $400 (manager will want to seo labels/detall on the types of costs included) (r) calculates the cost of Job th401 (manager will want to see iabelsidetail on the fypes of costs included) (s) calculates the amount of overappled or underapplied overhead (be sure to label which) (t) calculates the ending balance of Work-in-Process inventory (provide detail with Job number) (u) calculates the ending balance of Finished Goods (provide detail with Job number) (v) calculates the ending balance of Cost of Goods Sold (provide detail with Job number) Realize that labels are very important to managers who will receive your report in terms of enhancing understandability to make decisions. Then write a formal memo to Robin that (w) explains why the company used Job Order instead of Process Costing for these situations, (x) explains what the normal flows of costs through the accounts in a Job Order system, (y) explains why overhead is applied instead of actual overhead costs being assigned to products as they are incurred, and (z) identifies the common bases for applying overhead to products and why these are commonly used. (Why might direct labor hours have been chosen for these jobs?) Briefly refer to the spreadsheet you are attaching to your email, offer to help more as needed, and provide contact information. (You can type up false contact information for purposes of doing this case.) Company: KEYBOARDS ARE US, INC. You are a middle manager of Keyboards Are Us, Inc., a manufacturer and seller of electronic keyboard instruments, digital pianos, and other musical electronics. You are primarily responsible for two products sold by Keyboards Are Us, Inc., made in Wayne, NE. One is a standard electronic keyboard that sells for $920 and in constructed from medium-grade materials. The other model is a customized digital piano. The digital piano sells for $1,275. Both instruments require 15 hours of direct labor to produce, but the digital piano is manufactured by more experienced workers who are paid at a higher rate. Selected information regarding sales, production, and cost information for last year is as follows: The company allocates overhead costs using conventional costing using direct labor hours. You are concemed that the conventional cost-allocation system the company is using may not be generating accurate information so the resulting sales prices may also be improperly determined. You decide to perform some computations and report your results to your superior, Daniel Franklin. Create a spreadsheet with an output section that: (a) determines the overhead application rate per direct labor hour under conventional costing. (b) determines the total cost to manufacture one unit electronic keyboard using conventional costing (show material, labor and overhead separately to enhance manager usefulness) (c) determines the total cost to manufacture one unit digital piano using conventional costing (show material, labor and overhead separately to enhance manager usefulness) as well as (d) the current per-unit gross profit generated by the sale of an electronic keyboard, and (e) the current per-unit gross profit generated by the sale of a digital piano. Then (f) refer to your spreadsheet in your formal memo to Daniel as you explain what conventional (i.e. traditional) costing is, (g) why it has been popular over the years, but also (h) why it might not be an accurate way to assign overhead costs to products. While you were working, the comptroller (i.e. head accountant) of the company. Sharon Garvin, provides you with additional information that you requested from her to be used in activity-based costing: Create a spreadsheet with an output section that: (i) determines the six overhead application rates to use under activity-based costing (be sure to label thesel) (j) determines the total cost to manufacture one unit electronic keyboard using activity-based costing (show material, labor and overhead separately to enhance manager usefulness) (k) determines the total cost to manufacture one unit digital piano using activity-based costing (show material, labor and overhead separately to enhance manager usefulness) L ) calculates a suggested new seling price for each item based on recent industry reports that indicate most companies similar to ours determine selling price by taking cost and adding 20 percent of cost as markup. Then add to your formal memo to Daniel an explanasion of (m) how activity-based costing resuls in a more accurate allocation of overhead costs to products. Be sure to include (n) other benefits of adopting activitybased costing. and (o) one disadvantage to adopting activity-based costing. Finally, (p) make a recommendation to Daniel as to whether you think the firm should adopt activity-based costing AND justify your position. Be sure to include a few lines offering additional assistance upon request and providing your contact information in the form of an email address or phone number. (You can use made-up contact information for this project... I mostly want you to have practice explaining accounting information to a coworker using written communication.) This is a formal business documentplease write your memo in a professional format and tone. This month, you have been working remotely with Jall Journal on two batches (i.e. Job 1400 and 401 ) of new products developed by the company at facilities in Minneapolis. These musical electronics are being made in response to special, customized orders from two different touring bands. You and Jill will report the results to Robin Revenue, who managers the New Products Division. Jal's part was to determine costs incurred this month that were related to the two jobs. Your part is to put together the final report. Jils costs and other relevant infomation are as follows: (continued, next page) Materials requisitioned: $4,300 for Job #$00 and $5,400 for Job $401 and $360 for indirect materials. Labor used: 1,220 hours for Job $400 and 1,300 hours for Job 4401 and 205 hours for indirect labor. (Assume a labor rate of $23 per hour for all of these workers.) In addition, the factory supervisor who oversaw these operations earned $5.800 during the period. Rent and utilities for the factory used for this production for the period were $3.325 and $780 respectively. Depreciation on faciory equipment was $2,050 for the period. Manufacturing overhead was applied at a rate of $7.05 per direct labor hour. Job #400 was completed this month and sold. The selling price was 140% of manufactured cost for the job. Job #401 still needs to be finished and packaged so is not done. Any overapplied or underapplied overhead should be closed directly to Cost of Goods Sold for the period. Create a spreadsheet with an output section that: (q) calculates the cost of Job $400 (manager will want to seo labels/detall on the types of costs included) (r) calculates the cost of Job th401 (manager will want to see iabelsidetail on the fypes of costs included) (s) calculates the amount of overappled or underapplied overhead (be sure to label which) (t) calculates the ending balance of Work-in-Process inventory (provide detail with Job number) (u) calculates the ending balance of Finished Goods (provide detail with Job number) (v) calculates the ending balance of Cost of Goods Sold (provide detail with Job number) Realize that labels are very important to managers who will receive your report in terms of enhancing understandability to make decisions. Then write a formal memo to Robin that (w) explains why the company used Job Order instead of Process Costing for these situations, (x) explains what the normal flows of costs through the accounts in a Job Order system, (y) explains why overhead is applied instead of actual overhead costs being assigned to products as they are incurred, and (z) identifies the common bases for applying overhead to products and why these are commonly used. (Why might direct labor hours have been chosen for these jobs?) Briefly refer to the spreadsheet you are attaching to your email, offer to help more as needed, and provide contact information. (You can type up false contact information for purposes of doing this case.)