1) discussion
Overhead Costs Company Example
This week, we covered Process Costing and Activity-Based Costing. Process Costing is for manufacturers that assemble products that are identical. Activity-Based Costing assigns costs to overhead activities and then assigns those costs to the assembled products. Using the company in your Week 1 post, please identify some overhead costs in the manufacturing operations. What makes these overhead costs, and what cost driver should be used to apply the overhead costs to the products?
In your response to your peer, try to provide an insight that they may have missed on how their chosen company might be affected by overhead costs. Alternatively, you could explain how your chosen company is similar or different from your peers in terms of overhead costs and why your cost drivers are.
2) ACC226 Week 2 Exercise
Activity-based Costing
For this week’s assignment, address the following exercises. Be sure to complete all steps and sections of the problem and show all your work.
1. Customs makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with $25,000 in overhead. Poly is estimated to have 750,000 setups and 170,000 inspections, while Silk has 250,000 setups and 80,000 inspections. How much overhead is applied to each product?
2. A company estimated 50,000 direct labor hours and $450,000 in overhead. The actual overhead was $445,000, and there were 50,500 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
3. Five Card Draw manufactures and sells 24,000 units of Diamonds, which retail for $180, and 27,000 units of Clubs, which retail for $190. The direct materials cost is $25 per unit of Diamonds and $30 per unit of Clubs. The labor rate is $25 per hour, and Five Card Draw estimated 180,000 direct labor hours. It takes 3 direct labor hours to manufacture Diamonds and 4 hours for Clubs. The total estimated overhead is $720,000. Five Card Draw uses the traditional allocation method based on direct labor hours.
4. What is the gross profit per unit for Diamonds and Clubs?
5. What is the total gross profit for the year?3
3) ACC226 Week 2 Assignment
Process Costing
For this week’s assignment, address the following problems. Be sure to complete all steps and sections of the problem and show all your work.
1. A company started a new product, and in the first month started 100,000 units. The ending work in process inventory was 20,000 units that were 100% complete with materials and 75% complete with conversion costs. There were 100,000 units to account for, and the equivalent units for materials were $6 per unit while the equivalent units for conversion were $8 per unit. What is the value of the inventory transferred out, using the weighted-average inventory method?
2. There were 1,500 units in ending work-in-progress inventory that were 100% complete with regard tomaterial and 60% complete with regard to conversion costs. Ending work in process inventory had a cost of $7,200 and a per-unit material cost of $3. What was the conversion cost per unit using the weighted-average method?
3. The following product costs are available for Arrez Company on the production of DVD cases: direct materials, $1,450; direct labor, $15.50; manufacturing overhead, applied at 150% of direct labor cost; selling expenses, $1,550; and administrative expenses, $950. The direct labor hours worked for the month are 90 hours.
4. What are the prime costs?
5. What are the conversion costs?
6. What is the total product cost?
7. What is the total period cost?
8. If 1,450 equivalent units are produced, what is the equivalent material cost per unit?
9. What is the equivalent conversion cost per unit?
4) discussion 2
Effective Writing and Quality Documents
Answer both of the following questions:
Question A
Suggest three to five rules for clear, effective writing that are not mentioned in this lesson. Consider what you have noticed in your business and personal experience, or what you learn from an internet search of the topic. Explain your rules using examples.
Question B
Explain your personal writing process. What has worked for you in your effort to produce quality documents? What is your biggest writing challenge?
5) assignments
Planning Business Messages
In a one–page paper, discuss the three steps/tasks involved in planning business messages. In your paper, include a discussion on the three-step writing process, and explain how you would know that messages you receive were created using the three-step writing process.
Plan
- Prewriting
- Drafting
- Revising