ERAU Cost Management Systems & Managerial Accounting Worksheet

User Generated

pebff34

Writing

Embry Riddle Aeronautical University

Description

Hello,

All of the info required should be in the attachment. Feel free to ask me if you have any other questions.

Unformatted Attachment Preview

Module 3 During this course you will work through a simulation assignment, where you will complete a training course. You have recently been awarded an apprenticeship. The company you work for is Red Duv Aviation. The company has three divisions. The first division manufactures small aircraft engines. These engines are used in both privately owned and small aircraft used by charter flight companies. In addition to manufacturing small aircraft engines, the company also has a repair division and they manufacture three of the parts used in the manufacture of the aircraft engines. In each module, you will be given a scenario and several tasks. Make sure you complete the entire activity in order to get full credit. Write a summary of what you learned in the module. In module 9, you will submit a written paper detailing what you have learned during your training. It is day three of your training. You are required to complete the following activities. Watch the following videos, complete the activities, and then answer the questions. Cost Allocation https://youtu.be/0Y7N0rcWONw Overhead Allocation https://youtu.be/vMdxzH5IUQ4 Activity Based Costing vs Traditional Costing https://youtu.be/aDycx2hJ6tg What is Just-in-Time https://www.youtube.com/watch?v=6s4mppHXXx0&t=73s Read about the four basic steps to allocating manufacturing Overhead. Step1: Estimate the total manufacturing overhead costs (MOH) for the coming period. Step 2: Select an allocation base and estimate the total amount that will be used during the period. Step 3: Calculate the predetermined-overhead rate by dividing the total estimated MOH costs by the total estimated amount of the allocation base. Step 4: Allocate some MOH cost to each job worked on during the year by multiplying the predetermined MOH rate by the actual amount of the allocation base used by the job. Cost Flow Diagram: Two -stage Cost Allocation System Choose the correct activity to match the Allocation base. Use the choices from the word bank below. Some words may be used more than once. Word Bank: Airline ticket sales, Direct labor, Fabricating parts, Flying, Fueling, Machine setups, Machine use, Materials Handing, Purchasing, Quality inspections Activity Allocation base _________________ Number of machine hours _________________ Number of labor hours _________________ Fuel Weight _________________ Number of Flights sold _________________ Number of setups _________________ Number of Purchase orders _________________ Number of inspections _________________ Number of installed parts _________________ Number of flights _________________ Machine hours _________________ Flight Hours _________________ Number of parts The costs hierarchy provides useful ways of thinking of how to set up activity cost pools. These costs are determined by the underlying factor that drives its cost. Read about them below. (Top level) Facility-level activities: These are activities and costs incurred regardless of how many units, batches, or products are produced in the plant. Some examples include plant upkeep, depreciation, insurance, property tax, and maintenance on the entire facility. (Second level) Product-level activities: These are activities and costs that are incurred for a particular product, no matter the number of units or batches of production. Some examples include cost to research, develop, design, and market new models. (Third level) Batch-level activities: These are activities and costs incurred for every batch, without regard to number of units in the batch. Machine set up is a good example. Machine set up must be completed, regardless of number of units produced. (Final level) Unit-level activities: These activities and costs are incurred for every unit produced. Inspecting and packaging are good examples of unit-level activities. Each unit must be inspected and packaged. Four types of quality costs Label each phrase as Prevention, Internal Failure, Appraisal Costs, or External Failure Costs. Training personnel Service costs Evaluating potential suppliers Upgrade equipment Product redesign Excess scrap material Product rejection Rework Incoming Material Inspection Production stages inspection Warranty costs Sales Return and allowances Material Quality Preventive Maintenance Process redesign Downtime production loss Liability claims Machine breakdown Disposal of rejection product Equipment inspection Lost customer Product testing Cost of recalls Knowledge check: 1. The first step in calculating and using ABC is 1. Selecting appropriate allocation bases 2. Calculating activity cost allocation rates 3. Identifying the company's primary activities 4. Allocating some MOH to each job Answer 2. Fill in the blank: Activities incurred regardless of how many units, batches, or products are produced are called _____________ activities. Answer: Activities incurred regardless of how many units, batches, or products are produced are called facility-level activities. 3. 4. 5. 6. 7. Which of the following is not one of the costs of quality categories? Appraisal costs External failure costs Prevention costs Transportation costs. Answer: 4. 5. 6. 7. 8. Which of the following would be considered an external failure cost? Warranty costs Rework costs Cost to train personnel Cost of inspecting raw materials Answer
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Hello, I have completed working on this assignment. Kindly check the attached document below. Inform me when any changes need to be made arise. Many Thanks.

Module 3
During this course you will work through a simulation assignment, where you will
complete a training course. You have recently been awarded an apprenticeship. The
company you work for is Red Duv Aviation. The company has three divisions. The first
division manufactures small aircraft engines. These engines are used in both privately
owned and small aircraft used by charter flight companies. In addition to manufacturing
small aircraft engines, the company also has a repair division and they manufacture
three of the parts used in the manufacture of the aircraft engines.
In each module, you will be given a scenario and several tasks. Make sure you
complete the entire activity in order to get full credit. Write a summary of what you
learned in the module. In module 9, you will submit a written paper detailing what you
have learned during your training.
It is day three of your training. You are required to complete the following activities.
Watch the following videos, complete the activities, and then answer the questions.
Cost A...


Anonymous
Just the thing I needed, saved me a lot of time.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags