Unitron Friday
1 ‘produced as/ sold as’ matrix Sold as | Produced as | | | 401 | 402 | 403 | 404 | 405 | Total | | 401 | 90,000 | 10,000 | | | | 100,000 | | 402 | | 110,000 | 30,000 | | | 140,000 | | 403 | | | 60,000 | 40,000 | | 100,000 | | 404 | | | | 20,000 | 20,000 | 40,000 | | 405 | | | | | 20,000 | 20,000 | | Total | 90,000 | 120,000 | 90,000 | 60,000 | 40,000 | 400,000 |
2
Physical Measures Method | Produced | Proportion | Joint Cost Allocation | Unit Cost | 401 | 90,000 | (90,000/400,000)0.225 or 22.5% | (200,000 x 0.225)45,000 | (45,000/90,000)0.5 | 402 | 120,000 | (120,000/400,000)0.3 or 30% | (200,000 x 0.3)60,000 | (60,000/120,000)0.5 | 403 | 90,000 | (90,000/400,000)0.225 or 22.5% |
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6 | -1.66667 |
| sales value | proportion | cost allocation | cost/unit | amount sold | 401 | 40,000 | 0.153256705 | 30651.341 | 0.30651341 | 100,000 | 402 | 84,000 | 0.32183908 | 64367.81609 | 0.459770115 | 140,000 | 403 | 70,000 | 0.268199234 | 53639.84674 | 0.536398467 | 100,000 | 404 | 32,000 | 0.122605364 | 24521.0728 | 0.61302682 | 40,000 | 405 | 20,000 | 0.076628352 | 15325.6705 | 0.766283525 | 20,000 | seconds | 15000 | 0.057471264 | 11494.25287 | 0.114942529 | 100,000 | | 261,000 | | 200,000 | | |
| 401 | 402 | 403 | 404 | 405 | seconds | Revenue | 40,000 | 84,000 | 70,000 | 32,000 | 20,000 | 15000 | Costs | 30651.34 | 64367.82 | 53639.85 | 24521.07 | 15325.67 | 11494.25 | Profit | 9,349 | 19,632 | 16,360 | 7,479 | 4,674 | 3,506 | GM% | 0.233716 | 0.233716 | 0.233716 | 0.233716 | 0.233716 | 0.233716 |
3(a)(i)
Revenue = 6,000 x 0.4 = 2,400
If we fill the order with 402’s
Cost of 401’s – we have 3,000 in inventory so 3,000 x 0.4 = 1,200
Plus fill the rest of the order with 402,s – 3,000 x 0.4 = 1,200
Total Cost = 1,200 + 1,200 = 2,400
Profit(Loss) = 2,400 – 2,400 = 0
Or if we produce more 401’s instead
Revenue is unchanged = 2,400
Cost of 401’s = 6,000 x 0.4 = 2,400
Profit(Loss) = 2,400 – 2,400 = 0
3(a)(ii)
Revenue is unchanged = 2,400
Cost of 3,000 401’s = 3000 x 0.31 = 930
Cost of 3,000 402’s = 3000 x 0.46 = 1380
Total Cost = 2,310
Profit (Loss) = 2,400 – 2,310 = 90
Or if we produce more 401’s
Revenue is unchanged = 2,400
Cost of 6,000
Typically, net profit is measured on a quarterly or annual basis. When compared with a company net profit during other periods, it can provide a useful measure for how profitable a company is over time and the overall performance of the company & management team.
($372 + $135 + 500) / ($2.21 - ($0.83 + .40)) = 1,028 [+/- 31]
1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?
Apple Valley Family Practice is a medical practice with four locations in the Minneapolis/St. Paul area. The clinical staff consists of 20 physicians, all of whom practice in one or more areas of family medicine, and 46 physician extenders and nurses.
3. Andy is trying to decide which one of two job offers he will accept.
The common cost allocation methods which are used most often by health care organizations are the direct and the step- down methods. These methods are commonly used to help determine the costs of the services provided by the health care organizations. It is important to these agencies to know the costs of operation for each department. They can make smart business decisions on whether they can make investments, determine which department is making a profit or losing one, make improvements where necessary and have a sense of foundation for the future. There are other common cost allocation methods for patients-level costs, such as relative value units (RVU), ratio of cost to charges (RCC) and activity based costing (ABC) which gives us
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435% being the overhead rate calculated for the whole pool, at budget time for the model year.
This policy is designed to assist employees in reporting expenses incurred while conducting QB Medical, Inc. business activities.
Cost benefiting is a positive financial investment overall. Economically there will be less time and more productive work with less errors and stress put on clinical staff resulting in time off and time lost. Clinical documentation systems save in staffing costs bring down overall overhead costs. There seems to be a huge cost associated with medication expenditures and without missed documentation or wasted, missing, over medicating or duplication the electronic system would generate huge cost saving in this area. Another area of cost cutting would be decreased billing
What would happen financially to a health services organization over time if its prices were set at:
Allocating overhead costs is one of the important tasks and is necessary to be done by management accountant. One key reason is that in term of pricing strategies, many firms decide their products’ selling price based on their cost. And the selling price has to cover all the costs and profit.
Optimal Cash Replenishment Level Rose Axels faces a smooth annual demand for cash of $5,000,000, incurs transaction costs of $275 every time they sell marketable securities, and can earn 4.3 percent on their marketable securities. What will be their optimal cash replenishment level? (LG8)
* High quality of whisky due to the unusual iron-free spring water used in the distillation process and the specially prepared fire-charred white oak barrels used in the aging process.
While playing the BSG I found the best strategy was the best-cost provider strategy. Using the best-cost strategy allowed me to continue using a decent amount of superior material while also offering prices that were below or around the same price as my competitors. My shoes where not the highest quality or most expensive, but it was also made with a small amount of superior material so it was also not the cheapest made shoe available. This strategy worked best because it attracted buyers who wanted a good quality shoe but did not want to pay high quality prices. Since there were so many companies offering the same product, offering a medium-quality product at a lower price helped my company to gain more customers and market share. A focused differentiation strategy worked least well. Concentrating on one niche results in a company missing out on potential customers. Competitors working outside of the niche will eventually find ways to match the firm’s capabilities in serving the target niche. If the wants and needs of the target market start to switch over time, entry into the focused market can become easier for competitors as people look for different products and services.