Details of this Paper

Cost Accounting Statistics

Description

solution


Question

Cost Accounting Statistics. Under which of the following conditions would it be appropriate to use a Binomial;random variable? In each case, explain why your answer is correct.;a. A department will interview 10 candidates for a position, and call back for;second interviews those who answer the interview questions to the satisfaction;of all the interviewers. They hope to call back at least 3, but past experience;suggests an average of about 1 call back per 4 interviews.;b. A factory posts on the wall the number of days since its last safety;infraction of injury. In the past year, the factory has had a safety infraction;or injury on 6 different days. The factory is interested in the n umber of days;that can be expected to elapse without an injury.;c. Fifteen of a doctor?s patients have the same ailment. Studies have shown;that about 86.5% of patients with this ailment respond to a certain drug. The;doctor prescribes the drug to all 15, but the number who will respond in this;case is, of course, not known in advance.2.The following information pertains to Skandalis Company's production of one unit of;its manufactured product during the month of June;Standard quantity of materials 10 pounds;Standard cost per pound$0.75;Standard direct labor hours0.50;Standard wage rate per hour$10.00;Materials purchased 200,000 pounds;Cost of materials purchased $0.72 per pound;Materials consumed for manufacture of 10,000 units112,000 pounds;Actual direct labor hours required for 10,000 units4,600;Actual direct labor cost per hour $10.20;The materials price variance is recognized when materials are purchased.;a.Compute the materials price and quantity variances.;b. Compute the labor rate and efficiency variances.;c. Indicate whether each of the above variances is favorable or unfavorable;3.Dye and Dye, Attorneys-at-Law, each bill 1,500 hours per year and receive pay of $100,000. Four paralegals work 2,000 hours each for the firm and receive annual pay of $32,500. Overhead of $396,000 is anticipated, of which $204,000 is attorney support and the rest is paralegal support.;Determine the overhead application rate under each of the following circumstances;a.A simplified cost approach is used based on hours.;b.A simplified cost approach is used based on payroll dollars.;c.An activity-based cost approach is used. Attorney support is based on labor costs;and paralegal support is based on hours worked;4The following accounts are maintained by the Riverside Manufacturing Company in its general ledger: Materials, Work in Process, Factory Overhead, and Accounts Payable. The materials account had a debit balance of $40,000 on November 1.;A summary of material transactions for November shows the following transactions;(1) Materials acquired on account, $62,000;(2) Direct materials issued, $58,500;(3) Direct materials returned to storeroom, $1,200;(4) Indirect materials issued, $3,600;(5) Indirect materials returned to storeroom, $550;(6) Materials on hand were $200 less than the company's ledger balance.;a.Prepare journal entries to record these transactions.;b.Post the journal entries to T-accounts.;c.Determine the balance of the materials account on November 30.;These needs to be answer in two to four sentence;5.Under a process cost system, why is it necessary to estimate the stage or degree of completion of work in process at the end of the accounting period?;6.An employee who manufactures goods for her employer earns $12 an hour for regular wages. He?s paid time and a half for all hours worked in excess of 40 hours per week. In a recent week, she worked 50 hours.;a.How much of her gross pay that week was direct labor?;b.How much was indirect labor?;7.A company has $80,000 in fixed costs and makes one product with a selling price of $20 per unit. If variable costs are $10 per unit, what is the break-even sales volume in units?;8.What are the advantages and disadvantages of a stable inventory policy for a company that has greatly fluctuating sales during the year?;9. What type of production process lends itself to process costing? Provide an example.

 

Paper#28874 | Written in 18-Jul-2015

Price : $42
SiteLock