Upload File

© the mcgraw-hill companies, inc., 2002 mcgraw-hill/irwin traditional, volume-based product-costing...

  • Home
  • Documents
  • © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit
15
© The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume- Based Product-Costing System Aerotech produces three complex Aerotech produces three complex printed circuit boards referred to printed circuit boards referred to as Mode I, Mode II, and Mode III. as Mode I, Mode II, and Mode III. The following information is The following information is obtained from company records: obtained from company records: M ode I M ode II M ode III P rodu ction : U nits 10,000 20,000 4,000 R uns 1 of 10,000 4 of 5,000 10 of 400

Upload: grace-simon

Post on 03-Jan-2016

212 views

Category:

Documents


0 download

Report

TRANSCRIPT

Page 1: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

Traditional, Volume-Based Product-Costing System

Aerotech produces three complex printed Aerotech produces three complex printed circuit boards referred to as Mode I, Mode II, circuit boards referred to as Mode I, Mode II, and Mode III.and Mode III.

The following information is obtained from The following information is obtained from company records:company records:

Aerotech produces three complex printed Aerotech produces three complex printed circuit boards referred to as Mode I, Mode II, circuit boards referred to as Mode I, Mode II, and Mode III.and Mode III.

The following information is obtained from The following information is obtained from company records:company records:

Mode I Mode II Mode IIIProduction: Units 10,000 20,000 4,000 Runs 1 of 10,000 4 of 5,000 10 of 400

Page 2: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

Traditional, Volume-Based Product-Costing System

Aerotech wishes to see what target selling prices would be suggested when using

activity-based costing.

Aerotech wishes to see what target selling prices would be suggested when using

activity-based costing.

Let’s see how ABC works.Let’s see how ABC works.

Page 3: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

Overhead CostsOverhead CostsTotal budgeted cost = $3,894,000Total budgeted cost = $3,894,000

ActivityActivityCostCostPoolsPools

MachineryMachinerycost poolcost pool

$1,212,600$1,212,600

SetupSetupcost poolcost pool$3,000$3,000

EngineeringEngineeringcost poolcost pool$700,000$700,000

FacilityFacilitycost poolcost pool$507,400$507,400

UnitLevel

BatchLevel

Product-Sustaining

LevelFacilityLevel

Identificationof ActivityCost Pools

Identificationof ActivityCost Pools

ActivityActivitymust bemust bedone ondone oneach uniteach unitproduced.produced.

ActivityActivityperformedperformedon eachon eachbatchbatch

produced.produced.

Activities needed to supportActivities needed to supportan entire product linean entire product line

Activity required in orderActivity required in orderfor the productionfor the productionprocess to occur.process to occur.

Page 4: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

Overhead CostsOverhead CostsTotal budgeted cost = $3,894,000Total budgeted cost = $3,894,000

ActivityActivityCostCostPoolsPools

MachineryMachinerycost poolcost pool

$1,212,600$1,212,600

SetupSetupcost poolcost pool$3,000$3,000

EngineeringEngineeringcost poolcost pool$700,000$700,000

FacilityFacilitycost poolcost pool$507,400$507,400

MoreCostPools

UnitLevel

BatchLevel

Product-Sustaining

LevelFacilityLevel

Identificationof ActivityCost Pools

Identificationof ActivityCost Pools

Page 5: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

Receiving/InspectionReceiving/Inspectioncost pool cost pool $200,000$200,000

Material-HandlingMaterial-Handlingcost pool cost pool $600,000$600,000

Quality-AssuranceQuality-Assurancecost pool cost pool $421,000$421,000

Packaging/ShippingPackaging/Shippingcost pool cost pool $250,000$250,000

MachineryMachinerycost poolcost pool

$1,212,600$1,212,600

SetupSetupcost poolcost pool$3,000$3,000

EngineeringEngineeringcost poolcost pool$700,000$700,000

FacilityFacilitycost poolcost pool$507,400$507,400

UnitLevel

BatchLevel

Product-Sustaining

LevelFacilityLevel

Page 6: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

Various overheadVarious overheadcosts relatedcosts relatedto to machinerymachinery

Maintenance

Depreciation

Computer Support

Lubrication

Electricity

Calibration

Machinery Cost PoolMachinery Cost PoolTotal budgeted cost = $1,212,600

ActivityActivitycostcostpoolpool

STAGE ONESTAGE ONE

Page 7: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

CalculateCalculatethe poolthe pool

raterate

Budgeted Machinery Costs $1,212,600 Budgeted Machine Hours 43,000 $28.20/hour$28.20/hour

CostCostAssignmentAssignment

STAGE TWOSTAGE TWO

=

=

Page 8: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

Calculation ofCalculation oftotal total setup costsetup cost

Setup Cost PoolSetup Cost PoolTotal budgeted cost = $3,000

ActivityActivitycostcostpoolpool

STAGE ONESTAGE ONE

Page 9: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

CalculateCalculatethe poolthe pool

raterate

Budgeted Setup Costs $3,000Planned Production Runs 15 runs $200 per run$200 per run

CostCostAssignmentAssignment

STAGE TWOSTAGE TWO

=

=

Page 10: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

Various overheadVarious overheadcosts relatedcosts related

to to engineeringengineering

Engineering salaries

Engineering supplies

Engineering software

Depreciation

Engineering Cost PoolEngineering Cost PoolTotal budgeted cost = $700,000

ActivityActivitycostcostpoolpool

STAGE ONESTAGE ONE

Page 11: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

Allocate basedAllocate basedon on engineeringengineering

transactionstransactions

CostCostAssignmentAssignment

STAGE TWOSTAGE TWO

Engineering Cost PoolEngineering Cost PoolTotal budgeted cost = $700,000

Page 12: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

Exh.5-9

Various overheadVarious overheadcosts relatedcosts related

to to generalgeneraloperationsoperations

Plant depr.

Plant mgmt.

Plant maint.

Property taxes

Insurance

Security

Facility Cost PoolFacility Cost PoolTotal budgeted cost = $507,400

ActivityActivitycostcostpoolpool

STAGE ONESTAGE ONE

Page 13: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

Exh.5-9

CalculateCalculatethe poolthe pool

raterate

Budgeted Facilities Cost $507,400Budgeted Direct-Labor Hours 118,000 $4.30/hour$4.30/hour

CostCostAssignmentAssignment

STAGE TWOSTAGE TWO

=

=

Page 14: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

Optimal Product-Costing System

HighHigh

HighHigh

LowLow

LowLow

CostCost

InformationInformationSystemSystemAccuracyAccuracyOptimalOptimal

systemsystem

Total CostTotal Cost

Design, implementationDesign, implementationand maintenance costsand maintenance costs

Cost ofCost ofinferiorinferior

decisionsdecisionsresultingresulting

fromfrominaccurateinaccurate

information.information.

Exh.5-13

Page 15: © The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Traditional, Volume-Based Product-Costing System [Aerotech produces three complex printed circuit

© The McGraw-Hill Companies, Inc., 2002McGraw-Hill/Irwin

Non-Value-Added Costs

Suppose our production process looks like this:

StorageStorageTimeTime

WaitingWaitingTimeTime

ProcessProcessTimeTime

MoveMoveTimeTime

InspectionInspectionTimeTime

VAVA NVANVANVANVANVANVANVANVA

VA VA = Valued-added activity= Valued-added activityNVA NVA = Non-value-added activity= Non-value-added activity


© The McGraw-Hill Companies, Inc., 2003 McGraw-Hill/Irwin

McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies,

McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies

Irwin/McGraw Hill The McGraw-Hill Companies, Inc., 2000 · Slides by Matthew Will Chapter 2 Irwin/McGraw Hill ©The McGraw-Hill Companies, Inc., 2000. Irwin/McGraw Hill ... " Tools

McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, All Rights Reserved Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

McGraw-Hill © 2000 The McGraw-Hill Companies 1 S M McGraw-Hill © 2000 The McGraw-Hill Companies

Phonics/Spelling - Macmillan/McGraw-Hill · PDF filePhonics/Spelling PRACTICE BOOK. A Published by Macmillan/McGraw-Hill, of McGraw-Hill Education, a division of The McGraw-Hill Companies,

#14-1 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights

McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies

McGraw-Hill/Irwin ©2005 The McGraw-Hill Companies, All rights reserved McGraw-Hill/Irwin

Local Marketing in Mature Markets Chapter Eight. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,,

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill

McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 The Sociological Perspective McGraw-Hill © 2005 The McGraw-Hill Companies, Inc

McGraw-Hill 10-1. 10 McGraw-Hill Systems Analysis & Programming

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, All Rights Reserved McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, All Rights Reserved

Chapter 10 · Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2001 $ Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc.,

McGraw-Hill/Irwin McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. 1

1 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter Seven McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc.,

Correlated to Macmillan/McGraw-Hill€¦ · Mondo Bookshop - Grade K correlated to Macmillan/McGraw-Hill Treasures. Mondo Bookshop Macmillan/McGraw-Hill Treasures. Mondo Macmillan/McGraw-Hill

12-1 McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All

Mcgraw Hill

McGraw-Hill©The McGraw-Hill Companies, Inc., 2000 SUBNETTING

McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 3-1 McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. SOCIOLOGY:

© The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 The Sociological Perspective CHANGING SOCIETY part McGraw-Hill © 2005 The McGraw-Hill

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill Science Newsroom - Macmillan/McGraw-Hill€¦ · McGraw-Hill Science Newsroom Primary Edition complements the McGraw-Hill Science 2000textbook series by offering one interactive

©2009 The McGraw-Hill Companies, All Rights Reserved McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved ©2009 The McGraw-Hill Companies,

McGraw-Hill/Irwin ©2005 The McGraw-Hill Companies, All rights reserved ©2005 The McGraw-Hill Companies, All rights reserved McGraw-Hill/Irwin

McGraw-Hill Ryerson Copyright © 2006 by The McGraw-Hill

Chapter Ten LocalMarketing in Emerging Markets Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,,