What is internal control, and what are the objectives of a
well-designed internal control structure in an organization?
Thanks.
Merriamn Company provides the following ABC costing information:
|
Activities |
Total Costs | Activity-cost drivers |
| Account inquiry hours | $400,000 | 10,000 hours |
| Account billing lines | $280,000 | 4,000,000 lines |
| Account verification accounts | $150,000 | 40,000 accounts |
| Correspondence letters | $ 50,000 | 4,000 letters |
| Total costs | $880,000 |
The above activities are used by Department A and B as follows:
| Department A | Department B | |
| Account inquiry hours | 2,000 hours | 4,000 hours |
| Account billing lines | 400,000 lines | 200,000 lines |
| Account verification accounts | 10,000 accounts | 8,000 accounts |
| Correspondence letters | 1,000 letters | 1,600 letters |
How much of the inquiry cost will be assigned to Department A?
the costs per unit are:
Direct materials $12
Direct manufacturing labor 60
Variable manufacturing overhead 24
Fixed manufacturing overhead 32
Total $128
Monty Company has offered to sell Lewis Auto Company 10,000 units of the part for $120 per unit. The plant facilities could be used to manufacture another part at a savings of $180,000 if Lewis Auto accepts the supplier’s offer. In addition, $20 per unit of fixed manufacturing overhead on the original part would be eliminated.
highest sales pricehighest contribution margin per unit of the constraining resource
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