attention given to indirect cost allocation.
the use of scarce resources.
y = 1.80 + 400X
Quantitative analysis method
are relevant to all decisions.
a manufacturing company produces multiple products and uses multiple manufacturing facilities and/or machines.
keeping the bottleneck resource busy at least 90% of the time.
the total amount of the joint costs.
a method of cost planning to reduce manufacturing costs to targeted levels.
always act in their own best interest.
$5 – ($1.25 + $2.50) = $1.25
profits of the transferring division are sacrificed for the overall good of the corporation.
may use an allocation base of division revenues to allocate advertising costs.
adjusted rate-of-return analysis.
product design, process design, internal success, and external success.
|Accounts receivable||$100,000||Capital stock||$400,000|
|Depreciation, factory||$36,000||Retained earnings||?|
|Inventories (5/31 & 6/30)||$180,000||Cash||$56,000|
|Direct materials used||$210,000||Equipment, net||$260,000|
|Office salaries||$92,000||Buildings, net||$400,000|
|Insurance, factory||$4,000||Utilities, factory||$16,000|
|Plant wages||$140,000||Selling expenses||$50,000|
|Bonds payable||$160,000||Maintenance, factory||$28,000|
Prepare a budgeted income statement AND a budgeted balance sheet as of June 30, 20X9. (Points : 25)