(WIP) ACC 350 Exam 1 Study Material

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$1,715,071 $1,854,929 # of Units 50,000 10,000 $34.30 $185.49 DM 38.00 54.00 DL (from part 2) 30.00 60.00 Total Product Cost $102.30 $299.49 Selling Price $145.00 $275.00 Gross Margin $42.70 ($24.49) e. What can Brrrrr Company do to improve its profitability? Currently, the Self-propelled model is losing money on each unit sold (even before SG&A costs!). The company probably doesn’t want to discontinue this model. First, they may want to explore the idea of increasing prices. Second, they should evaluate whether they can use the ABC information to manage costs. The schedule below breaks out activity costs per unit. They should use this information and focus on the high dollar costs. For example, it costs $52 per unit to inspect the Self-propelled snow blowers. This seems excessive given the $275 selling price (20% of selling price for inspection?). Setups are also extremely expensive. Can they run more items in a batch? While inventory holding costs would increase, reducing the number of batches would likely reduce the costs per unit of inspections, setups, scheduling and material handling. They should do a cost/benefit analysis to determine whether the savings offset the increasing inventory holding costs. Activity Self-Propelled Per Unit Engineering Design $286,000 $28.60 Inspections 585,000 58.50 Production Set-ups 305,000 30.50 Scheduling 110,000 11.00 Material Handling 147,500 14.75 Machine Maintenance 200,000 20.00 Facility Costs 221,429 22.14 $1,854,929 $185.49
Pg. 25 Sarah Allison Takash ACC 350, Spring 2018 Exam 1 Study Material Ch. 15 - Allocation of Support Dept. Costs, Common Costs, and Revenues Complete List of Terms (From end of chapter) Terminology Definitions 33. Allowable cost Direct Method Summary: 34. Steps:
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Sarah Takash ACC 350 spring 2018 Ex
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Ptt e. chs . Review 1132 Problems C
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P . 7 per - 3 solutions Ch. 2 Revie
Page 21 and 22: P . be 7-5 COMPUTATIONAL QUESTION 1
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Page 31 and 32: p . Be 7-15 #2 - COGM / COGS Hanks
Page 33 and 34: a. t 7- it Solutions ACC 350 In-Cla
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Page 37 and 38: 20. Cost hierarchy Pg. 16 Sarah All
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Page 41 and 42: 29. Steps: Pg. 20 Sarah Allison Tak
Page 47 and 48: Solutions ACC 350 Practice problem
Page 49 and 50: Problem #2 - Activity Based Costing
Page 53 and 54: solutions ACC 350 In-Class Problems
Page 55 and 56: Requirements: 1. Determine the plan
Page 59 and 60: Standard: ($42,500 * .50) / 15,000
Page 61 and 62: Solutions Milwaukee Company Problem
Page 63 and 64: d. Determine the gross margin (per
Page 65 and 66: InClass Problems - Chapter 4 Requir
Page 67 and 68: Requirements: a. Determine the plan
Page 69 and 70: $1,715,071 $1,854,929 # of Units 50
Page 71: $1,715,071 $1,854,929 # of Units 50
Page 75: Summary of Article Pg. 27 Sarah All
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(WIP) ACC 350 Exam 1 Study Material

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