12 Dec Prairie Wolf (PW) designs and produces car parts.
Prairie Wolf (PW) designs and produces car parts. In 2015, actual variable manufacturing overhead is $400,000. PW’s simple costing system allocates variable manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged non-competitive prices, so you as PW’s management accountant, realizes that it is time to examine the consumption of overhead resources more closely. You know that there are three main departments that consume overhead resources: Design, Production and Engineering. Interviews with the department personnel and examination of time records yield the following detailed information: Department Cost driver Variable manufacturing overhead 2015 Usage of cost drivers by customer contract United Motors Alpha Motors Beta Motors Design CAD-design hours $28,000 110 200 80 Production Engineering hours $40,000 60 240 370 Engineering Machine-hours $230,000 140 6708 1080 Total $298,000 XXXX is the last four digits of your student ID Requirements: Your report must at least cover the following parts: (1) What is the variable manufacturing overhead allocated to each customer in 2015 using the simple costing system that has machine-hours as the cost-allocation base? (2) What is the variable manufacturing overhead allocated to each customer in 2015 using departmental based variable manufacturing overhead rates? (3) Which customer do you think was complaining about being overcharged in the simple system? Which customer do you think will be unhappy in the departmental based rates being used to price contracts? How would you respond to these concerns? (4) How else might PW use the information available from its department-by-department analysis of variable manufacturing overhead costs? (5) PW’s managers are wondering if they should further refine the department-bydepartment costing system into an ABC system by identifying different activities within each department. Under what conditions would it not be worthwhile to refine further the department costing system into an ABC system? (6) PW’s variable manufacturing overhead for engineering department has increased by 50% in 2015 with little increase in machine hours. The management believes that there are significant idle hours in the machine operators in engineering department. Provide two effective recommendations to PW’s engineering department on how to improve the productivity of the machine operators.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.