100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Exam (elaborations) ADMS 2510 FINAL EXAM WITH CORRECT ANSWERS AND PRECISE ELABORATIONS GRADED A+ £10.22
Add to cart
Quickly navigate to
Preview
  2.  
  3. ADMS
  4.  
  5. ADMS

Exam (elaborations)

Exam (elaborations) ADMS 2510 FINAL EXAM WITH CORRECT ANSWERS AND PRECISE ELABORATIONS GRADED A+

1 review
 1 purchase
  • Module
  • ADMS
  • Institution
  • ADMS

Concern on the fairness of the allocation of the store managers complete salary to the bakery department. (1 mark) - Bakery manager has no control or authority on numerous costs incurred by his department and of which he is reponsible for, responsibility accounting is lacking. (1 mark) - No ade...

[Show more]

Preview 2 out of 10  pages

Document information

  • February 26, 2024
  • 10
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • exam elaborations adms 2510 final exam
  • mini case bidco foods report marking key
  • case approach format used by student

Written for

  • ADMS
  • ADMS

1  review

review-writer-avatar

By: SuccessMaestro • 7 months ago

Seller

avatar-seller
Ascorers

Reviews received

Content preview

2Question 1 (20 marks 36 m inutes) –
Part A (10 marks) Atkinson Technologies has determined that a sing le overhead application rate no longer results in a reasonable allocation of overhead to its diverse products. Accordingly, the company has restructured its overhead a pplication. It has established six cost pools and identified appropriate cost drivers. The new cost pools, allocation bases, and rates are as follows: Cost Pool Application Ra te
Setup costs $70 per setup Machine costs 30 per machine hour Labour-related costs 15 per direct labour hour Material handling costs 2 per kilogram of material received Quality costs 150 per customer return Other costs 8 per machine hour During 2006, the company experienced the following volume for each cost application base: Setups 300 Machine hours 9,000 Direct labour hours 8,000 Kilograms of material received 100,000 Customer returns 250 Required: a. Determine the amount of overhead applied in 2006. b. Assume that the company incurred $740,000 in actual overhead costs in 200 6. Compute the company’s underapplied or overapplied overhead. a. Applied OH: Setups 300 $ = ×70 $ 21,000 MHs 9,000 $30 = ,000 × 270 DLHs 8,000 $ = ,000 ×15 120 #s rec'd 100,000 $2 = 200,000 × Returns $ = 250 ×150 37,500 Other 9,000 $8 = ,000 × 72 $720,5 00 b. $( 00) $720,500 - $740,000 = 19,5 underapplie d Cost of Goods Sold $19,500 c. Applied Overhead $19,500 3Question 1 Part B (10 m arks) Newmarket Cosmetic Hospital is under increa sing pressure for the charges it assesses its patients. Except for an explicit consideration of direct costs for surgery, medication, and other treatments, the current pricing system is an ad hoc one based on pricing norms for the geographical area. As the hospital controller, you have suggested that pricing would be less arbitrary if there were a tighter relationship between costs and patient charg es. As a first step, you have determined that most costs can be assigned to one of the following three cost pools. Cost Pool Amount Activity Driver Quantity Professional salaries $1,100,000 Professional hours 40,000 hours Building costs 500,000 Square metres used 20,000 square metres Risk management 400,000 Patients served 2,000 patients Hospital services are classified into three broad categories. The services and their volume measures follow. Service Professional Hours Square Metres Number of Patients Surgery 6,000 1,200 200 Inpatient care 20,000 12,000 500 Outpatient care 4,000 1,800 300 Required: a. Determine the allocation rate for each cost pool. b. locate costs among the three hospital services using the allocation rates derived Al
in part (a). a. Professional salaries: $1,100,000 40,000 = $27.50 per hour  Building costs: $500,000 ,000 = $ per square metre 20 25 Risk management: $400,000 2,000 = 00 per patient  $2 b. 25 $2 Surgery = (6,000 X $27.50) + (1,200 X $ ) + (200 x $200) = 35,000 Inpatient care = (20,000 x $27.50) + (12,000 x $ ) + (500 x $ 0) = 25 20
$950,000 Outpatient Care = (4,000 x $27.50) + (1,800 x $ ) + (300 x $200) = 25
$215,000 c. $1,100,000 + $500,000 + $ 400,000 = $2,000,,000 patients = $1000 / patient. - Advant ages: simple to apply, low cost, makes intuitive sense, - Disadvant ages: complicated to apply, expenses, inaccurate

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Ascorers. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £10.22. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

68175 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 15 years now

Start selling
£10.22  1x  sold
  • (1)
Add to cart
Added