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Lecture 10

# BUS 202 Lecture 10: February 13th Premium

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Department
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BUS 202
Professor
Nick Ross

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February 13th Monday, February 13, 2017 9:11 AM Audio 1 • Sendi (Continued) ○ Departments § Assembly § Machining § 3 sets of POH were calculated □ Step down ® POHm \$8.30 (MH for machining) ® POHa \$4.80 (DLH for assembly) □ Direct ® POHm \$7.83 (MH in machining) ® POHa \$5.21 (DLH in assembly □ Plant-wide: 9.65/DLH ○ Assume Job A: ---- Machine hours DLH § Machining 100hr 65hr Assembly 100hr 40hr □ How much will job a cost under each costing system? ® Step-down (most accurate/complex): (100*\$8.30) + (40*\$4.80) = \$1,022.0 ◊ ® Direct: ◊ (100*\$7.83) + (\$5.21* 40) = \$991.4 ® Plant-wide(easiest to calculate): ◊ \$9.65*(65+40) = \$1,013.25 ® Under job a, the method used didn’t really matter ® Go with the plant wide, it doesn’t really matter and is the easiest to calculate ○ Assume Job b: ---- Machine hours DLH § Machining 25hr 45hr Assembly 25hr 125hr □ How much will job a cost under each costing system? ® Step-down: ◊ (25*\$8.30) + (125*\$4.80) = \$807.5 ® Direct: February 13th Monday, February 13, 2017 9:11 AM Audio 1 • Sendi (Continued) ○ Departments § Assembly § Machining § 3 sets of POH were calculated □ Step down ® POHm \$8.30 (MH for machining) ® POHa \$4.80 (DLH for assembly) □ Direct ® POHm \$7.83 (MH in machining) ® POHa \$5.21 (DLH in assembly □ Plant-wide: 9.65/DLH ○ Assume Job A: ---- Machine hours DLH § Machining 100hr 65hr Assembly 100hr 40hr □ How much will job a cost under each costing system? ® Step-down (most accurate/complex): (100*\$8.30) + (40*\$4.80) = \$1,022.0 ◊ ® Direct: ◊ (100*\$7.83) + (\$5.21* 40) = \$991.4 ® Plant-wide(easiest to calculate): ◊ \$9.65*(65+40) = \$1,013.25 ® Under job a, the method used didn’t really matter ® Go with the plant wide, it doesn’t really matter and is the easiest to calculate ○ Assume Job b: ---- Machine hours DLH § Machining 25hr 45hr Assembly 25hr 125hr
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