Got a tricky question? Receive an answer from students like you! Try us!

Managerial Accounting - Essay Example

Only on StudentShare
Author : blanca22
Finance & Accounting
Pages 4 (1004 words)


Managerial Accounting 1) What Joe needs to understand is that employee salaries can be taken out of company expenses. The reason for this is because paying employees their wages is something that is important to the functioning of a business. For example, if a company has not paid its employees for a long period of time, then it is likely that those salaries would go under liabilities on the balance sheet…

Extract of sample
Managerial Accounting

This money would be classified as cash until the salaries are actually paid. At that point, salaries would come upon a specific salary section on the balance sheet or may even be considered a business expense and taken of the balance sheet altogether. 2) a) The predetermined overhead rate for the year is $5 per direct labor hour. (Manufacturing Overhead/ Direct Labor-hours) ($80,000/ 16,000) = $5 per direct labor hour. b) The amount of overhead charged to jobs during the year is $75,000. (Actual direct labor-hours * Predetermined overhead rate) (15,000 * $5) = $75,000 c) The amount of underapplied or overapplied overhead for the year is $3,000 underapplied. (Actual overhead costs – Applied overhead costs) ($78,000 - $75,000) = $3,000 d) The unit cost that would appear on the job cost sheet for Job #315 is $59. (Direct Materials + Direct Labor + Overhead applied)/ 100. ($1,500 + $2,400 + $2,000) = $5,900. $5,900/ 100 = $59. 3) $20,000 + $201,000 = $221,000. $221,000 - $35,000 = $186,000 4) a) TVC = $118,008/ 2,400 = $49.17. $49.17 * 2,500 = $122,925 b) TFC = $9,000/ 2,400 = $3.75. ...
Download paper
Not exactly what you need?

Related Essays

Managerial Accounting
The balanced scorecard method comprises of four different perspectives like, customer perspectives, financial perspectives, innovation and learning perspective and lastly the internal business process perspective. By the implementation of these perspectives the balance scorecard captures the lagging and the leading indicators which gives a balanced notion over the performance of the organisation. The leading indicators of the organisation measure the development of a new product, timely delivery of the product, satisfaction of the customer, competency of the employee, etc. However, under the…
7 pages (1757 words)
Managerial Accounting Paper
An investor would invest in the company when he finds it profitable for the long term or the short-term period. A company is profitable for the long term or the short term if it uses the available resources efficiently. To find that whether a company is using the resources efficiently or not, a researcher has to analyze the financial statements of the company. Along with this, the strategies taken by the company will also need to analyze. The vision, mission and goals of the company tell about the strategies that they are going to take in the future. Analyzing the financial position and the…
16 pages (4016 words)
Finance - Managerial Accounting
Hence, managers can influence organizations’ cost behavior to a great extent. This paper will discuss capacity costs, committed fixed costs, and discretionary fixed costs in detail with reference to their current and future impact on business or society. Capacity costs Capacity costs can be simply referred to the fixed costs required for achieving predetermined level of production or meeting desired level of customer satisfaction without compromising product quality. Generally companies infrequently make strategic or capacity decisions because this process is highly complex and time…
3 pages (753 words)
article review for managerial accounting
This is because some of the expenses can be reduced by use of direct labour instead of using machines. The allocation of overhead does not only lead to faulty choices in a business, but it assists managers to know which products to continue producing and which it should stop producing. This has been further elaborated by the use of Activity Based Accounting (ABC), which basically shows how to deal with cost allocation of items sold to big and small customers. This way, the management is able to make decisions in the best way to serve their customers. For instance, in the TTI case, the company…
3 pages (753 words)
Managerial Accounting Final Report
This paper offers managerial accounting report based on an entity’s costing accounting data and recommends improvements to the firm. The scope of management accounting incorporates financial accounting concepts, cost accounting concepts, and statistical concepts to develop an understanding of a business environment towards informed managerial decisions. Cost accounting offers data on costs and facilitates analysis for cost control or cost based decisions (Bhattacharyya 2). The management approach’s ability to use existing data for forecasting and planning identifies its significance to…
6 pages (1506 words)
Managerial Accounting
Initially, they started off with producing high quality record players which attracted customers belonging to a certain age group but gradually they shifted into producing technologically advanced products such as CD players, MP3 players and USB turntable. This helped the company to reach a wider customer base, rather only a younger one. This indicates that their primary strategy was to achieve a higher level of customer satisfaction. In addition to that, GEK’s leaders followed a team or sound style of leadership strategy which was concerned with both the production and employees (Zeidan…
7 pages (1757 words)
Managerial Accounting Assignment
5. Machine requirements Man hour costs 1,000*15=$15,000 1,000*12.50=12,500 2,500 Man hour costs forms part of direct labour costs since it must be met for the process to take place. 6. Engineer’s charges Monthly salary= 42,000/12=$3,500 This forms part of the indirect labour cost since it is not primary for the initial stage of the project. (ii) The valuation in the context of the proposed tender is valid hence need to be considered by the company. The direct costs being considered on the basis of absorption cost are lower than the overall revenues expected from the entire project. Direct…
5 pages (1255 words)