Bridgeton Industries Question 1: The overhead allocation rate used in the 1987 model-year strategy study at the Automotive Component & Fabrication Plant (ACF) was 435% of direct labor dollar cost. Calculate the overhead allocation rate using the 1987 model year budget. Calculate the overhead allocation rate for each of the model years 1988 through 1990. Are the changes since 1987 in overhead allocation rates significant? Why have these changes occurred?
President of Acer Corp, The purpose of this letter is to provide guidance to Acer Corp on the appropriate accounting for the Theta investment. Below is an overview of the transaction followed by our findings and authorities used for the basis of our conclusions under both US and International accounting standards. From our research, it is more beneficial for Acer to headquarter in the US where only partial gains from the transaction must be recognized. This transaction included the transfers of factory equipment to Theta Corp in exchange for $1 million cash and a 25% equity ownership stake in Theta. The book basis of the transferred equipment was $6 million, and the equipment was recently appraised for $6.5 million.
Huffman Trucking Telecommunication Improvements Executive Summary Huffman Trucking is an Ohio based transportation company that has hubs in Cleveland OH, Los Angeles CA, St. Louis MO, and Bayonne NJ. Started in 1936 by K. Huffman with a single truck and trailer, Huffman trucking is a major player in the transportation industry delivering products to and from factories to costal ports around the country. Huffman transports many products like auto parts, computers, wine, and munitions for civilian and government contracts. In today’s competitive market a company has to do everything it can to be number one in their respective industry and stay there. The mission statement of Huffman Trucking is to be a profitable, growing,
In your explanation, provide examples of when job order costing and process costing would be most appropriate. Your initial post should be 200 to 250 words. Auerbach Enterprises. Complete Case 3A (Auerbach Enterprises) in Chapter 3. Auerbach Enterprises manufactures air conditioners for automobiles and trucks manufactured throughout North America.
Running head: GAP ANALYSIS: HUFFMAN TRUCKING Gap Analysis: Huffman Trucking Rhonda Chiles University of Phoenix Gap Analysis: Huffman Trucking Introduction Kristen Huffman, CEO and President of Huffman Trucking Company is the founder of a nationwide transportation company. Huffman started Huffman Trucking in 1936 as H. Huffman Trucking. Huffman begin with one tractor-trailer and provided service in and around Cleveland, Ohio. The need for carrier services during and after World War II was in demand in the mid-west and east coast. Huffman’s reputation was being known throughout the country which enabled Huffman to obtain sufficient resources to buy 16 tractors and 36 trailers by 1945.
Huffman Trucking has numerous duties to fulfill within the companies main base in Ohio, and its outside branch locations in other areas. These duties include the management of type L (large) accounts and type S (small) accounts besides attending to customers needs and keeping them satisfied with on time fright deliveries while maintaining merchandise in one piece upon delivery. A log is required to keep track of driver detailed information as they are on the road and fulfilling shipments to clients as well as a log for any maintenance done on any tractor or trailer to stay up to date with different state regulations. Huffman trucking holds all of their information in a database created by an outside source, Smiths Systems Consulting. According to Quinstreet Inc. 2011, A collection of information organized in such a way that a computer program can quickly select desired pieces of data.
The organizational structure used in Huffman trucking company is a functional structure because the company has certain tasks for certain departments. Huffman Trucking is also a producer of services and has stations nationwide with locations in Cleveland, Las Angeles, Bayonne, and St. Louis so the functional structure works more in their favor. Within the business, people are being organized or assigned duties and are to be reporting to a supervisor. With the organized departments of the business, more specialized people can be utilized in their areas of expertise. For instance in the business, there is an accountant and finance department, within that department people are organized into categories such as: accounts receivables, payables, costs, financial analyst, and an accountant analysis.
1 out of 1.00 point The following journal entry would be made in a processing costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y: True False In a process costing system, overhead costs are traced to units of product as they are incurred. True False A process cost system would be used to account for the cost of manufacturing an oil tanker. True False A process costing system would be best suited for production of a large quantity of a homogeneous product. True False In process costing, costs are accumulated in processing departments, rather than by job. True False The job cost sheet is used in both job-order and process costing.
Harry W. Pedroso Intermedia Financial Accounting I Section 03 Aren’t We Done Yet? LabCo is a contracting firm that specializes in the construction of machinery and equipment for different types of industries. All LabCo projects contracts are unique and they require some design and development. LabCo charges its customers two ways fixed-price or cost basis. LabCo uses the percentage of competition method to recognize revenue.
1. Answer The use of data given in the question to calculate ABC based service charges is presented in the following table: Activity | Cost as Per Question | Activity Driver | Activity DriverUnits | Activity Based Cost | Storage | 1550,000$ | Number of Cartons | 350,000 | 4.43$ | Requisition Handling | 1801,000$ | Number of Requisitions | 310,000 | 5.81$ | Basic warehouse stock selection | 761,000$ | Number of Requisition Lines | 775,000 | 0.98$ | Pick-pack Activity | 734,000$ | Number of Lines requiring pick-pack | 697,500 | 1.05$ | Data entry | 612,000$ | Number of Requisition Lines | 775,000 | .79$ | Desktop delivery | 250,000$ | Number of Desktop Deliveries | 8,500 | 29.41$ | Total | 5708,000$ | | | | Note:- The activity driver unit for pick-up activity is calculated as: Number of requisitions estimated to be processed for 1992 = 310,000 Each requisition contains on average 2.5 lines so number of lines for 1992 = 310,000*2.5 = 775,000 Number of lines requiring pick-pack activity = 775,000*90% = 697,500 Note: All figures are rounded to nearest $ 2. Answer Distribution service cost for “customer A” and for “Customer B” Activity | Activity Based Cost | Activity Driver | Activity DriverUnits | Distribution Cost | | | | Customer A | Customer B | Customer A | Customer B | Storage | 4.43$ | Number of Cartons | 350 | 700 | 1,550$ | 3,100$ | Requisition Handling | 5.81$ | Number of Requisitions | 364 | 790 | 2,115$ | 4,590$ | Basic warehouse stock selection | 0.98$ | Number of Requisition Lines | 910 | 2,500 | 894$ | 2,455$ | Pick-pack Activity | 1.05$ | Number of Lines requiring pick-pack | 910 | 2,500 | 958$ | 631$ | Data entry | .79$ | Number of Requisition Lines | 364 | 790 | 719$ | 1,974$ | Desktop delivery | 29.41$ | Number of Desktop Deliveries | - | 26 | - | 765$ | Inventory handling | | | | |