trident acc202 module 4 casestudy and SLP

trident acc202 module 4 casestudy and SLP

Question
	module 4 case study

This case has two separate parts.















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Part I
How can activity based management and activity based costing (ABC) benefit an organization? Specifically, address the following points.
  • How does ABC differ from other allocation methods?
  • Describe the main characteristics of ABC.
  • What type of companies tends to benefit from ABC?
  • Comment on a company (research Internet) that has implemented ABC.
    • What type of company is it?
    • Was it successful?






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Part II
The below concepts are all applied by many business in an attempt to be more efficient and reduce costs. Create a table describing at least three of the concepts below and how implementation may benefit an organization.
  • Lean manufacturing
  • Just-in-time
  • Theory of constraints
  • Total quality control
  • Value chain
The submission should be 3 to 5 pages and need to include answers to all the questions listed above. Include references in APA format.
Modular Case Expectations
It is important to answer the questions above. The discussion should be three to five pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.

module 4 SLP

Herrestad Company does produce and sell two products and the details below will be used to prepare a segmented income statement (showing the income for each product and the total) for the company. Use ABC to allocate all fixed costs to the two products.
Background information
 Total
 Prod A
Prod B
Beginning inventory
 0 
Units produced
 10,000
 2,500
 7,500
Units sold
 8,000
 2,000
 6,000
Selling price per unit
 $255
 480
 180
Variable costs per unit
 Direct material
 100
 280
 40
 Direct labor
 60
 60
 60
 Variable overhead
 25
 40
 20
 Variable selling and admin. exp.
 10
 13
 9
Fixed costs
 Fixed manufacturing overhead
 200,000
 Fixed selling and administrative
 100,000

Production runs (not $)
100
65
35
Number of sales reps (not $)
 25
 15
10
Here are the first few lines of the segmented income statement to help you get started. Complete the statement in good format and make sure you allocate the fixed costs to the two products. When done, comment on the information and the relative profitability of the two products.
Herrestad Company
Segmented Income Statement
For the period ending Dec. 31, 2011
 A
 B
 Total
Sales
 $960,000

 $1,080,000
 $2,040,000
Variable costs:
 Direct material
 560,000
 240,000
 800,000
The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format.