November 23, 2014

Homework Help: Managerial Accounting

Posted by Angela on Saturday, January 28, 2012 at 4:32pm.


I just started my accounting class and I do not have any accounting experience of knowledge (my first acct class). Could you please help me out. I just need the traditional and ABC direct, indirect, and unallocated cost answer for the two accounting systems.

You have been selected to complete the following table by indicating for each activity whether the related cost is direct, indirect, or unallocated. For each indirect cost, indicate one appropriate cost-allocation base (more than one cost allocation base may be appropriate).

Setting up for a production run--related cost is mechanic wages:
Traditional answer: ABC answer:

Purchasing materials and parts to be used in products--related cost is materials and parts cost:
Traditional answer: ABC answer:

Shipping sold products to customers (distributors)--related cost is fuel on company's fleet of trucks:
Traditional answer: ABC answer:

Market research study conducted by marketing staff to assess demand for potential new product--related cost is salaries of market research staff:
Traditional answer: ABC answer:

Production scheduling--related cost is salaries of production scheduling managers:
Traditional answer: ABC answer:

Purchasing materials and parts to be used in products--related cost is salaries of purchasing agents:
Traditional answer: ABC answer:

Order processing of customer orders--related cost is salaries of order staff:
Traditional answer: ABC answer:

Preparing cost analyses--related cost is cost acct salary:
Traditional answer: ABC answer:

Designing a new product--related cost is salaries of design engineers that are fully dedicated to the new product:
Traditional answer: ABC answer:

Managing overall operations--related cost is salary of executive of company:
Traditional answer: ABC answer:

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