Solved by verified expert :WEEK 1….ABC Journey (graded)Read the assigned article on the ABC Journey by Taikonda. What are your thoughts on the ABC Readiness and Implementation?This section lists options that can be used to view responses.Workout Room (graded)This week we will work and discuss several of the following problems from Chapter 5: 5-29 to 5-41.This section lists options that can be used to view responses.Problem 5-291. Why is it important for Wigan Associates to understand the costs associated with individual jobs? It is important because to correctly allocate the cost for labor and indirect costs you have to be able to identify which job was more expensive then the other based on the amount per hour.Exercise 5-32, 1. Calculate the budgeted cost per unit for fighter jets and cargo planes based on a single plant-wide overhead rate, if total overhead is allocated based on total direct costs.I took a shot at part one of Problem 5-345-34Choosing cost drivers, activity-based costing, activity-based management. Annie Warbucks runs a dance studio with childcare and adult fitness classes. Annie’s budget for the upcoming year is as follows: Other budget information follows:Annie Warbuck’s Dance Studio Budgeted Costs and Activities For the Year Ended June 30, 2010Dance teacher salaries$62,100Child care teacher salaries 24,300Fitness instructor salaries 39,060Total salaries$125,460Supplies (art, dance accessories, fitness) 21,984Rent, maintenance, and utilities 97,511Administration salaries 50,075Marketing expenses 21,000Total$316,0301. Determine which costs are direct costs and which costs are indirect costs of different programs.Direct CostsIndirect CostsDance Teacher SalariesSuppliesChild Care Teacher SalariesMarketing ExpensesFitness Instructor SalariesRent, Maintenance, and Utilities Modified:10/30/2014 8:47 AM1. Compute the 2011 gross-margin percentage for each of Pharmacare’s three market segments.The gross-margin percentage is calculated using the following formula: [(Revenue – Cost of goods sold) ÷ Revenue] RevenueCOGS Gross Margin Profit General Supermarket Chains $ 3,708,000.00$ 3,600,000.00 3% Drugstore Chains $ 3,150,000.00$ 3,000,000.00 5% Mom-and-Pop Single-Store Pharmacies $ 1,980,000.00$ 1,800,000.00 9%1. Compute the costs of Widnes and St. Helen’s cases using Partner and Associates Direct Cost and Indirect Cost categories: Direct CostsWidnes – 104 hrsSt. Helens – 96 hrsTotal – 200 hrs Partner @ $100/hr $2400$5600$8000 Associate @ $50/hr$4000$2000$6000 Research Support labor$1600$3400$5000 Computer time$500$1300$1800 Travel and Allowances$600$4400$5000 Telephones/faxes$200$1000 $1200 Photocopying$250$750$1000 Total Direct Costs$9550$18450$28000Indirect Costs Partner @$57.50$1380$3220$4600 Associate @ $20$1600$800$2400Total Indirect Costs$2980$4020$7000Total Costs$12530$22470$350002. This multiple direct-cost categories and multiple indirect-cost categories approach can assist Wigans when they decide how much to bid on a new project. Understanding the level of expertise needed on a new case will allow them to allocate the appropriate number of partners and associates to the case, and determine how many labor hours each will need to complete the work. This approach is a very accurate way of estimating how much of their resources will be needed to complete the client work.2. What is the budgeted cost of unused capacity.WEEK 2Flexible versus Static Budgets (graded)Why would managers find a flexible budget superior to a static budget, anyone?This section lists options that can be used to view responses.Workout Room (graded)This week we will work and discuss several of the following problems from Chapter 6: 6-28 to 6-41, and Chapter 7: 7-30 to 7-42, and chapter 8: 8-29 to 8-42. Choose one to begin our discussion this week!
