{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-29T01:10:11-04:00", "answer_date": "2024-06-29 01:10:11", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4435493", "url": "\/study-help\/questions\/question-2-16-marks-ryans-sportswear-ltd-is-a-company-4435493", "question_creation_date_js": "2024-06-29T01:10:11-04:00", "question_creation_date": "Jun 29, 2024 01:10 AM", "meta_title": "[Solved] Question 2 (16 marks) Ryan's Sportswear L | SolutionInn", "meta_description": "Answer of - Question 2 (16 marks) Ryan's Sportswear Ltd. is a company specialized in manufacturing sportswear. The company uses a | SolutionInn", "meta_keywords": "question,2,16,marks,ryan,s,sportswear,ltd,company,specialized,manufacturing,job-order", "question_title_h1": "Question 2 (16 marks) Ryan's Sportswear Ltd. is a company specialized in manufacturing sportswear. The company uses a job-order costing system. In the beginning of", "question_title": "Question 2 (16 marks) Ryan's Sportswear Ltd. is a company specialized in", "question_title_for_js_snippet": "Question 2 (16 marks) Ryan's Sportswear Ltd is a company specialized in manufacturing sportswear The company uses a job order costing system In the beginning of the year, the company's founder Mr Ryan made the following estimates for the two departments involved with producing sportswear Department A Department B Direct materials costs $1 1 0,000 $100,000 Direct labor hours 2,000 10,000 Machine hours 80,000 1,000 Variable manufacntring overhead per labor hour $0 5 $2 Variable manufacturing overhead per machine hour $1 $0 2 Fixed manufacturing overhead cost $60,000 $50,000 Wage per labor hour $10 $10 The company has recently completed Job 100 with the following cost information Department A Department B Direct labor hours 10 200 Machine hours 100 10 Direct materials cost $5,000 $3,000 Instructions a Choose appropriate allocation base for Ryan's Sportswear Ltd and explain your choice (2 marks b The company uses predetermined overhead rates to apply manufacturing overhead cost to jobs Based on the allocation base you have chosen, calculate the total overhead costs applied to Job 100 (1' marks) c If the company uses absorption costing, calculate the total production cost for Job 100 (3 marks) d Someone told Mr Ryan that if he could manipulate his estimation on the units of allocation base when calculating the predetermined overhead rates, he may have a big boost in the net operating income at the end of the year Explain why manipulating the units of allocation base could lead to a boost in the net operating income Should Mr Ryan do such manipulation 4 marks ", "question_description": "
\"image<\/div><\/div><\/div><\/figure> Question 2 (16 marks) Ryan's Sportswear Ltd. is a company specialized in manufacturing sportswear. The company uses a job-order costing system. In the beginning of the year, the company's founder Mr. Ryan made the following estimates for the two departments involved with producing sportswear: Department A Department B Direct materials costs $1 1 0,000 $100,000 Direct labor hours 2,000 10,000 Machine hours 80,000 1,000 Variable manufacntring overhead per labor hour $0.5 $2 Variable manufacturing overhead per machine hour $1 $0.2 Fixed manufacturing overhead cost $60,000 $50,000 Wage per labor hour $10 $10 The company has recently completed Job 100 with the following cost information: Department A Department B Direct labor hours 10 200 Machine hours 100 10 Direct materials cost $5,000 $3,000 Instructions: {a} Choose appropriate allocation base for Ryan's Sportswear Ltd. and explain your choice. (2 marks} {b} The company uses predetermined overhead rates to apply manufacturing overhead cost to jobs. Based on the allocation base you have chosen, calculate the total overhead costs applied to Job 100. (1' marks) {c} If the company uses absorption costing, calculate the total production cost for Job 100. (3 marks) {d} Someone told Mr. Ryan that if he could manipulate his estimation on the units of allocation base when calculating the predetermined overhead rates, he may have a big boost in the net operating income at the end of the year. Explain why manipulating the units of allocation base could lead to a boost in the net operating income? Should Mr. Ryan do such manipulation\\\"? {4 marks}", "transcribed_text": "", "related_book": { "title": "Intermediate Accounting", "isbn": "470964731, 978-0470964736, 978-0470161012", "edition": "9th Canadian Edition, Volume 2", "authors": "Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/516.jpg", "uri": "\/textbooks\/intermediate-accounting-9th-canadian-edition-volume-2-516", "see_more_uri": "" }, "free_related_book": { "isbn": "1952914140", "uri": "\/textbooks\/maternity-and-women-health-nclex-rn-review-1st-edition-9781952914140", "name": "Maternity And Women Health NCLEX RN Review", "edition": "1st Edition" }, "question_posted": "2024-06-29 01:10:11", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/explain-in-which-solvent-these-reaction-are-faster", "description": "Explain in which solvent these reaction are faster: a) HC Br in CHOH or CH-CHOH I b) CHCHCHCH + OH in CHOH or 50% CHOH 50% HO CHICHICH c) CHCHCH + C=N: in CHCHOH or DMSO", "stars": 3.5 }, { "url": "\/study-help\/psychology\/2-intimate-partner-violence-and-stalking-are-heterogeneous-crimes-and-1982436", "description": "2. Intimate partner violence and stalking are heterogeneous crimes and this should be taken into account during assessment and\/or treatment of offenders. Critically discuss.", "stars": 3.5 }, { "url": "\/condensed-financial-data-of-minnie-hooper-company-are-shown-below", "description": "Condensed financial data of Minnie Hooper Company are shown below. Additional information:1. New plant assets costing $146,000 were purchased for cash during the year.2. Investments were sold at...", "stars": 3 }, { "url": "\/study-help\/questions\/given-ordering-cost-1000-and-carrying-cost-150-9849184", "description": "Given ordering cost = $1000, and carrying cost = $1.50 per unit. Calculate : c) MRP table based on lot sizing; L4L WITH SS MRP Record Item: Lead Time = 2 weeks Safety Stock = 50 Lot Size = L4L Week 5...", "stars": 3 }, { "url": "\/study-help\/questions\/8-given-the-following-hypothesis-ho-h-100-h1-2625794", "description": "8 Given the following hypothesis: Ho: H = 100 H1: H # 100 8 A random sample of six resulted in the following values: 00:55:14 114 120 119 108 113 108 Using the 0.01 significance level, can we...", "stars": 3 }, { "url": "\/study-help\/elementary-statistics\/compute-the-value-of-the-test-statistic-for-the-following-1429048", "description": "Compute the value of the test statistic for the following sample, for testing H0: m = 50 versus H1: m \n \n \n \n Answered: 1 week ago", "stars": 3 }, { "url": "\/study-help\/fluid-mechanics-\/one-mathrmj-mathrmkg-is-equal-to-a-1-mathrmkpa-1413666", "description": "One \\(\\mathrm{J} \/ \\mathrm{kg}\\) is equal to (a) \\(1 \\mathrm{kPa} \\cdot \\mathrm{m}^{3}\\) (b) \\(1 \\mathrm{kN} \\cdot \\mathrm{m} \/ \\mathrm{kg}\\) (c) \\(0.001 \\mathrm{~kJ}\\) (d) \\(1 \\mathrm{~N} \\cdot...", "stars": 3 }, { "url": "\/study-help\/financial-accounting-and-reporting\/on-5-january-the-day-of-her-successful-grand-opening-1421856", "description": "On 5 January, the day of her successful grand opening of Hair Affair Pty Ltd, Kate Brown collected \\($2280\\) in cash for hair styling services, and paid \\($400\\) in wages and \\($92\\) for rent. Kate...", "stars": 3 }, { "url": "\/study-help\/introductory-financial-accounting\/for-the-four-unrelated-situations-ad-calculate-the-unknown-amounts-1433805", "description": "For the four unrelated situations, A-D, calculate the unknown amounts indicated by the letters appearing in each column: A B Beginning Assets... Liabilities. $28,000 $12,000 $28,000 $ (d) 18,600...", "stars": 3 }, { "url": "\/study-help\/financial-and-managerial-accounting\/the-following-items-could-appear-on-a-bank-reconciliation-a-1429978", "description": "The following items could appear on a bank reconciliation: a. Outstanding checks b. Deposits in transit c. NSF check d. Bank collection of our note receivable e. Interest earned on bank balance f....", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/what-are-the-key-elements-in-the-unpacking-process-group-4435492", "next": "\/study-help\/questions\/what-is-the-principal-role-of-managers-in-talent-management-4435494" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Question 2 (16 marks) Ryan's Sportswear Ltd. is a company specialized in", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/question-2-16-marks-ryans-sportswear-ltd-is-a-company-4435493" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }1" } }