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AKANKSHA A. MENON MANAGERIAL ACCOUNTING ACCT 2025 MIDTERM MAR 7, 2018
Part I: Cost Classification Exercise
Selected cost
Variable
Cost
Fixed
Cost
Period
Cost (or
SAG)
Direct
Material
Direct
Labor
Overhead
1. Wood used in a table ($100 per table)
X
X
2. Labor cost to assemble a table ($40 per
table)
X
X
3. Salary of the factory supervisor ($38,000
per year)
X
X
4. Cost of electricity to produce tables ($2
per machine-hour)
X
X
5. Depreciation of machines used to produce
tables ($10,000 per year)
X
X
6. Salary of the company president
($100,000 per year)
X
X
7. Advertising expense ($250,000 per year)
X
X
8. Commissions paid to salespersons ($30
per table sold)
X
X
Part II: Problem-Solution Essay
HEWLETT-PACKARD AND THE INTRODUCTION OF JIT TO TRADITIONAL
