Identifying joint and separable costs: Outback Cattle Company raises cattle and sells beef products. Following is a list of costs for the operation.
REQUIRED
Identify whether each cost is most likely a (J) joint cost or a (S) separable cost. For each item, explain why.
- Veterinary costs for the calves
- The cost of grinding meet for mince
- The cost of feed for the cattle
- The cost of labour to manage the cattle while they grow
- The cost of labour to prepare the cowhide for sale as leather
- The cost for packaging steaks and roasts
- The depreciation on the sheds that provide shelter for the cattle
الثاني
Excercise : Job Costing, determination of manufacturing overhead rates
Sheldon Manufacturing estimates the following activity for 2011:
Expected production = 10 000 units
Expected direct labour hours = 10 000 hours
Expected manufacturing overhead = $100 000
Manufacturing overhead is allocated on the basis of direct labour hours.
At the end of the financial period the following information was collected:
Direct labour hours = 9000 hours
Manufacturing overhead = $120 000
Required:
(a) What was the predetermined manufacturing overhead rate calculated at the beginning of 2011?
( What was the actual manufacturing overhead rate for 2011?
© Explain the difference between the rates calculated in (a) and ( above.
الثالث
By-product further processing decision: For a given by-product, 100 units can be sold at the split-off point for $8 each, or processed further at a cost of $12 each and sold for $19.
Required
Should the by-product be processed further? Provide calculations and explain your answer.