Question

You are asked to increase the budgeted manufacturing cost for ocerhead by 10%. Over the last...

You are asked to increase the budgeted manufacturing cost for ocerhead by 10%. Over the last years actual figures you noticed, accounting for inflation the increase is at most 2%. What would you do as an accountant "?
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer -

To the 2% inflation rate, the consideration will be given by purchase and production department as it becomes their responsibility to procure and produce / manufacture at a lower rate by looking towards different alternative suppliers, method of production, measures to be adopted to avoid wastage, to reduce unproductive labour time and also make plans of processess to be performed which nullifies the 2% inflation for the organisation.

Inflation and change in budgeted amount can reduce the accuracy of financial accounts. As an accountant I would increase the Budeget Overhead cost by 10%.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
youre an accountant at a manufacturing facility and have been asked to increase budgeting manufacturin costs...
youre an accountant at a manufacturing facility and have been asked to increase budgeting manufacturin costs for manufacturing overhead by 10%. Based on last years actual figures you noticed, even after accounting for inflation the increase is at most 2%. what would you do in the situation if you werethe accountant?
1.) Do you think the inflation rate will decrease, increase, or stay the same over the...
1.) Do you think the inflation rate will decrease, increase, or stay the same over the next couple of years? Explain your reasoning. 2.) WHich of the following economic changes are consistent with cost-push inflation? Check all that apply * rising economic output * an increase in the price level * falling economic output
You expect inflation over the next year to be -2.5%. Actual inflation over the last year...
You expect inflation over the next year to be -2.5%. Actual inflation over the last year was 2.59%, and the current nominal interest rate is 6.3%. What is your expected real rate of interest (in %)? Round to 0.01%. E.g., if your answer is 3.145%, record it as 3.15.
1. The following data are given for a period: Estimated (budgeted) Manufacturing overhead cost $60,000 Actual...
1. The following data are given for a period: Estimated (budgeted) Manufacturing overhead cost $60,000 Actual Manufacturing overhead cost                          $64,000 Predetermined overhead rate: $20 per machine hour Estimated Activity base                                              3,000 machine hours Actual Activity base                                                   3,300 machine hours Manufacturing overhead is: over-applied by $6,000. over-applied by $2,000. under-applied by $2,000. over-applied by $4,000. under-applied by $4,000. 2. Salem Company applies overhead on the basis of direct labor hours. Its predetermined overhead rate is $70 per direct labor hour.    The following additional...
Del Ray operates the Champions Steak and Seafood restaurant. Last month, Del budgeted $3,800 for food,...
Del Ray operates the Champions Steak and Seafood restaurant. Last month, Del budgeted $3,800 for food, in the specific categories listed on the following page. It was a busy month, but Del thought he did a good job managing his costs. Imagine his surprise when, at the end of the month, Del calculated his actual expenses and entered them in the chart below. He found he was way over budget! Calculate Del's % of Budget in each category listed on...
Accounting 2: Cost Terms, Cost Behavior, Cost Systems. Assignment: In order to interview a manufacturing company;...
Accounting 2: Cost Terms, Cost Behavior, Cost Systems. Assignment: In order to interview a manufacturing company; what 8 in depth questions would you ask using the topic: budgeting process. Ex. How they do their accounting for inventory? Plz be detailed
why do you think the u.s. experince with inflation over the last 50 years has been...
why do you think the u.s. experince with inflation over the last 50 years has been so much milder than in many other countries?
Accounting 2: Cost terms, Cost Behavior, Cost Systems. The assignment is to interview a manufacturing company:...
Accounting 2: Cost terms, Cost Behavior, Cost Systems. The assignment is to interview a manufacturing company: Example - tile, hardwood floor or other construction material OR other type of manufacturing company. There needs to be a TOPIC OR 2. Ex: it’s budgeting process. One would also need to focus on a particular area(s) like their Acct. Process. Ex: How they do their Accounting for inventory or how they do their budgeting. What 2 topics and area would you focus on?...
Consider the following selected cost data for the Pittsburgh Forging Company for 2018. Budgeted manufacturing overhead...
Consider the following selected cost data for the Pittsburgh Forging Company for 2018. Budgeted manufacturing overhead costs $7,500,000 Budgeted machine-hours 250,000 Actual manufacturing overhead costs $7,300,000 Actual machine-hours 245,000 The company uses normal costing. Its job-costing system has a single manufacturing overhead cost pool. Costs are allocated to jobs using a budgeted machine-hour rate. 1. Compute the budgeted manufacturing overhead rate. (1pt) 2. Compute the amount of under- or overallocation of manufacturing overhead. Prepare a journal entry to dispose of...
10.   Smartphone usage among people fifty-five (55) years and older has increased                 over the last...
10.   Smartphone usage among people fifty-five (55) years and older has increased                 over the last several years. It is now reported that 35% (.35) of people over the age of                 55 own a smartphone. Ten (10) persons 55 or over were asked at a local mall if they                 owned a smartphone. What is the probability that:                            a. No more than two (2) people owned a smartphone?                            b. Exactly one (1) person owned a smartphone?                           ...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT