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tar Cosmetics has ned traditional cost accounting rystem to polygu co percent of direct labor cout Monthly director cost for Shining mohou competitive. In an

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tar Cosmetics has ned traditional cost accounting rystem to polygu co percent of direct labor cout Monthly director cost for Shining mohou competitive. In an attempt to more equitably distribute cality control costs monthly data shown in the following chart have been gathered for Shima Lots of 16 Die Industry in Canada codebased conting. The Activity.Cost Pool Cost Driver Pool Rates Quantity of Deliver for Shining Type of material Incoming material inspection $ 22 per type 22 types $ 0.24 per unit 32,000 units In-process Inspection Number of units $ 65 orders Per order Product certification 144 per order Required: (Show all work and highlight final answer.) 1. Calculate the monthly quality-control cost to be assigned to the Shining product line under each of the following product-casting systems. a. Traditional system, which assigns overhead on the basis of direct-labor cost. b. Activity-based costing. 2. Does the traditional product-costing system overcost or undercost the Shining makeup product line with respect to quality control costs? By what amount? 3. Should Olar adopt an activity-based costing system? Based on the calculations in requirements 1 and 2 provide two specific reasons support your recommendation for Olar. MacBook Pro tar Cosmetics has ned traditional cost accounting rystem to polygu co percent of direct labor cout Monthly director cost for Shining mohou competitive. In an attempt to more equitably distribute cality control costs monthly data shown in the following chart have been gathered for Shima Lots of 16 Die Industry in Canada codebased conting. The Activity.Cost Pool Cost Driver Pool Rates Quantity of Deliver for Shining Type of material Incoming material inspection $ 22 per type 22 types $ 0.24 per unit 32,000 units In-process Inspection Number of units $ 65 orders Per order Product certification 144 per order Required: (Show all work and highlight final answer.) 1. Calculate the monthly quality-control cost to be assigned to the Shining product line under each of the following product-casting systems. a. Traditional system, which assigns overhead on the basis of direct-labor cost. b. Activity-based costing. 2. Does the traditional product-costing system overcost or undercost the Shining makeup product line with respect to quality control costs? By what amount? 3. Should Olar adopt an activity-based costing system? Based on the calculations in requirements 1 and 2 provide two specific reasons support your recommendation for Olar. MacBook Pro

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