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| Teaching Since: | Apr 2017 |
| Last Sign in: | 331 Weeks Ago, 3 Days Ago |
| Questions Answered: | 12843 |
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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Q13-1: Williams, a professional services firm has overhead of £625,000. It operates
three divisions and an accountant’s estimate of the overhead allocation per division is
38% for Division 1, 22% for Division 2 and 40% for Division 3. The divisions respectively
bill 4,100, 1,950 and 3,300 hours. Calculate the business-wide overhead recovery rate
and the cost centre overhead recovery rate for each division.
Q13-2: Randy’s Components uses an activity based costing system for its product
costing. For the last quarter, the following data relates to costs, output volume and cost
drivers. If set-up costs are driven by the number of production runs, what are the correct
set-up costs for each product?
Overhead Cost £ Machinery 172,000 Set-ups 75,000 Materials Handling 25,000 Total 272,000 Product information A B C Production and sales units 5,000 3,500 2,800 Number of production runs 11 9 6 Number of stores orders 15 10 9
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