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09-Mar-2020 23:48

The direct costs of each of the five functions are traced directly to the three products. Variable manufacturing costs were per unit of product.The indirect costs of each of the five business functions are collected into five separate cost pools and then assigned to the three products using appropriate allocation bases. Planned and actual fixed manufacturing costs were 0,000, and selling and administrative costs totaled 0,000.Places heavy emphasis on indirect costs and disregards consideration of direct costs. A total of 150,000 machine hours have been budgeted for the year.[Fact Pattern #1] Albany Mining Corporation uses a process costing system for its ore extraction operations. During the year, an order for 1,000 units was completed and incurred the following: Direct material costs

The direct costs of each of the five functions are traced directly to the three products. Variable manufacturing costs were $30 per unit of product.The indirect costs of each of the five business functions are collected into five separate cost pools and then assigned to the three products using appropriate allocation bases. Planned and actual fixed manufacturing costs were $600,000, and selling and administrative costs totaled $400,000.Places heavy emphasis on indirect costs and disregards consideration of direct costs. A total of 150,000 machine hours have been budgeted for the year.[Fact Pattern #1] Albany Mining Corporation uses a process costing system for its ore extraction operations. During the year, an order for 1,000 units was completed and incurred the following: Direct material costs $1,000 Direct labor costs 1,500 Actual overhead 1,980 Machine hours 450 The accountant calculated the inventory cost of this order to be $4.30 per unit.

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The direct costs of each of the five functions are traced directly to the three products. Variable manufacturing costs were $30 per unit of product.

The indirect costs of each of the five business functions are collected into five separate cost pools and then assigned to the three products using appropriate allocation bases. Planned and actual fixed manufacturing costs were $600,000, and selling and administrative costs totaled $400,000.

Places heavy emphasis on indirect costs and disregards consideration of direct costs. A total of 150,000 machine hours have been budgeted for the year.

[Fact Pattern #1] Albany Mining Corporation uses a process costing system for its ore extraction operations. During the year, an order for 1,000 units was completed and incurred the following: Direct material costs $1,000 Direct labor costs 1,500 Actual overhead 1,980 Machine hours 450 The accountant calculated the inventory cost of this order to be $4.30 per unit.

The average cost per unit for processing a customer invoice will equal the incremental cost of processing one more customer invoice.

The cost per unit for processing customer invoices will decline as the volume of customer invoices increases.

Places minimal emphasis on the cost of materials used in manufacturing a product.

[2] Gleim #: Source: CMA Conversion cost pricing Could be used when the customer furnishes the material used in manufacturing a product.

,000 Direct labor costs 1,500 Actual overhead 1,980 Machine hours 450 The accountant calculated the inventory cost of this order to be .30 per unit.

Disc Duplicator Cleaning Unit Raw materials $ $ Machining at per hr Assembly at per hr Variable overhead at per hr Fixed overhead at per hr Total cost $ $ Suggested selling price $ $ Actual research and development costs 0,000 5,000 Proposed advertising and promotion costs 0,000 0,000 [5] Gleim #: Source: CMA (Refers to Fact Pattern #2) For Huron s disc duplicator, the unit costs for raw materials, machining, and assembly represent Separable costs. For pricing purposes, all company costs are assigned to the three products. planned and actually manufactured 200,000 units of its single product in its first year of operations.

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