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Posted: July 13th, 2022
Accounting Assignment | Custom Assignment Help
Must use all attached document, 3 supported readings(referances) and other highlighted parts
Borealis Manufacturing has just completed a major change in its quality control (QC) process. Previously, products had been reviewed by QC inspectors at the end of each major process, and the company’s 10 QC inspectors were charged to the operation or job as direct labor. In an effort to improve efficiency and quality, a computerized video QC system was purchased for $250,000. The system consists of a minicomputer, fifteen video cameras, and other peripheral hardware and software. The new system uses cameras stationed by QC engineers at key points in the production process. Each time an operation changes or there is a new operation, the cameras are moved, and a new master picture is loaded into the computer by a QC engineer. The camera takes pictures of the units in process, and the computer compares them to the picture of a “good” unit. Any differences are sent to a QC engineer, who removes the bad units and discusses the flaws with the production supervisors. The new system has replaced the 10 QC inspectors with two QC engineers. Get accounting assignment Assignment: I need help writing a research paper.
The operating costs of the new QC system, including the salaries of the QC engineers, have been included as factory overhead in calculating the company’s plant-wide manufacturing-overhead rate, which is based on direct-labor dollars. The company’s president is confused. His vice president of production has told him how efficient the new system is. Yet there is a large increase in the overhead rate. The computation of the rate before and after automation is as follows:
BeforeAfterBudgeted Manufacturing Overhead1,900,0002,100,000Budgeted Direct Labor Cost1,000,000700,000Budgeted Overhead Rate190%300%
“Three hundred percent,” lamented the president. “How can we compete with such a high overhead rate?”
Using the module readings and the Argosy University online library resources, research manufacturing overhead.
Review the situation. Complete the following:
- Define “manufacturing overhead,” and:
- Best paper writer websites, Custom term paper writing service and Research papers owl essays – Professional help in research projects for students – Cite three examples of typical costs that would be included in manufacturing overhead.
- Explain why companies develop predetermined overhead rates.
- Explain why the increase in the overhead rate should not have a negative financial impact on Borealis Manufacturing.
- Explain how Borealis Manufacturing could change its overhead application system to eliminate confusion over product costs.
- Write a page paper – Describe how an activity-based costing system might benefit Borealis Manufacturing.
Write a 3–4-pages paper in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M2_A2.doc.
Assignment 2 ~ Hire our professional writers now and experience the best assignment help online with our custom paper writing service. We ensure your essays and assignments are expertly researched, written and delivered on time. ~ Grading CriteriaMaximum PointsDefined manufacturing overhead giving three examples of typical costs that would be included in manufacturing overhead.16Explained why companies develop predetermined overhead rates.16Explained why the increase in the overhead rate should not have a negative financial impact on Borealis Manufacturing.16Explained how Borealis Manufacturing could change its overhead application system to eliminate confusion over product costs.20Explained how an activity-based costing system might benefit Borealis Manufacturing.16Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; and displayed accurate spelling, grammar, and punctuation.16Total: Get accounting assignment Assignment: I need help writing a research paper.
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