Questionnaires are useful in providing the analyst with interactive feedback
Indicate whether the statement is true or false
FALSE
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In addition to the five forces model of industry competition, Michael Porter has developed a framework of so-called generic business strategies. Explain these generic strategies, describing their aims and application
What will be an ideal response?
On November 1, 2018, A & C Janitorial Supply sold merchandise on account with a cost of $4,200 for $6,000 and payment terms of 3/10, n/30. The company uses the gross method and a perpetual inventory system. Prepare the journal entries for this transaction. Omit explanations.
What will be an ideal response?
The following information was gathered for Company J, a manufacturing company with three departments, A, B, and C:Manufacturing supplies cost is expected to be $300,000. Possible cost drivers are direct labor hours, direct materials cost, and number of units completed and sold. The three departments have varying amounts for these items. Department ADepartment BDepartment CDirect labor hours 15,000 40,000 45,000 Direct materials cost$500,000 $2,500,000 $2,000,000 # of units expected to be completed and sold 80,000 30,000 40,000 Based on this information, indicate whether each of the following statements is true or false.If number of units completed and sold is selected as the cost driver, the allocation rate for manufacturing supplies cost would be $2 per unit. If
direct labor hours is selected as the cost driver, the manufacturing supplies cost allocated to Department B would be $100,000. The manufacturing supplies cost allocated to Department C would be unaffected by the choice of the cost driver. If the amount of bonuses to department managers is based on income after all expenses, the manager for Department A would prefer that direct materials cost be selected as the cost driver. If the amount of bonuses to department managers is based on income after all expenses, the manager for Department B would prefer that direct labor hours be selected as the cost driver. What will be an ideal response?
Fletes Corporation manufactures two products: Product O95C and Product M31N. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products O95C and M31N.Activity Cost PoolActivity MeasureTotal CostTotal ActivityMachiningMachine-hours$207,0009,000MHsMachine setupsNumber of setups$140,000350setupsProduct designNumber of products$98,0002products??Order sizeDirect labor-hours$340,00010,000DLHsActivity MeasureProduct O95CProduct M31NMachine-hours6,0003,000Number of setups190160Number of products11Direct labor-hours4,0006,000Using the ABC system, how much
total manufacturing overhead cost would be assigned to Product O95C? A. $399,000 B. $136,000 C. $392,500 D. $263,000