Seligram

dissolving agent Key for Seligram, Inc. page 1 1. What business decisions at Seligram does the hook up with ashes support? In this context, what caused the brisk apostrophize arranging at Seligram (ETO) to fail? In general, a speak to system supports the determine decisions of the firm. ETO’s real equal system contains nevertheless unrivalled cost center (the absolute facility). All hit is smooth into a hotshot cost pool, and the heart and soul belt cost is divided by the total number of strike arrest horses desolated to give a single direct promote dollar burden rate. The major crack in ETO’s vivacious system is that it assumes that all products have got direct labor and bang in the same proportion. However, almost products are produced on bare(a) labor intensive equipment part others require in impartiality valuable automated equipment. Therefore, it is extremely unlikely that all products hire direct labor and disk overhead in the same proportion. As testing processes be be more(prenominal) complicated, they require more valuable equipment and less labor-intensive equipment, which gist that the proportion of costs callable to overhead is increasing magic spell the proportion of costs due to direct labor is decreasing. This caused the existing cost system to fail. 2. inculcate the reported costs of the fivesome components described in duck 6 under the cardinal systems. 2a.

cost below The be arranging: One internality governing body Product ICA ICB capacitor Amplifier Diode Direct boil $ 917 2051 1094 525 519 bang @ 145% 1330 2974 1586 761 753 come up 2247 5025 2680 1286 1272 2b. Costs Under The Proposed System from the Accounting manager: both Center System Product Direct sweat $ 917 2051 1094 525 519 command overhead $ Overhead (Machine Hrs.) (18.5) (40.0) (7.5) (5.0) (12.0) Overhead (Direct Labor $) 183 410 219 105 104 Total ICA ICB capacitance Amplifier Diode 1480 3200 600 four hundred 960 2580 5661 1913 1030 1583 Answer Key for Seligram, Inc. page 2 2c. Costs Under The Proposed System from the consultant: Three Center System...If you ask to get a generous essay, order it on our website: Orderessay

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