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ACCT 434 Week 1 Homework

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ACCT 434 Week 1 Homework

 1.Question :Based on the information provided for Problem 1, determine the activity-cost-driver rate for packaging costs.

 

Question 2.Question :Based on the information provided for Problem 1, using the ABC system, for the sugar cookie, compute the estimated overhead costs per 1,000 cookies.

 

Question 3.Question :Based on the information provided for Problem 1, using the ABC system, for the sugar cookie, compute the estimated gross profit per 1,000 cookies.

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Question 4.Question :Based on the information provided for Problem 1, using a traditional system (with direct labor hours as the overhead allocation base) for the sugar cookie, compute the estimated overhead costs per 1,000 cookies.

 

Question 5.Question :Based on the information provided for Problem 1, using a traditional system (with direct labor hours as the overhead allocation base) for the sugar cookie, compute the estimated operating profit per 1,000 cookies.

 

Question 6.Question :Based on the information provided for Problem 1, explain the difference between the profits obtained from the traditional system and the ABC system.  Which system provides a better estimate of profitability?  Why?

 

Question 7.Question :Problem 2 (Essay question): What is activity-based management and how can it be used to improve the profitability of a company?

 

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