When we covered spoilage costs in class, we discussed

the concepts of normal and abnormal spoilage. Can these concepts be related to

the different types of variances we analyzed as well? Which of the 3rd

level variances relates more to the spoilage concepts we studied? (Identify the

variance related to spoilage and explain in two lines max how you would relate

the two topics.)

Company X obtains fish and then processes them into frozen fillets

and then prepares the frozen fish fillets for distribution to its retail sales

department. Direct materials are added at the initiation of the cycle.

Conversion costs are incurred evenly throughout the production cycle. Before

inspection, some fillets are spoiled due to undetectable defects. Inspection

occurs when units are 40% converted. Spoiled fillets generally constitute 6% of

the good fillets. Data for April 2020 are as follows:

Company X

has two support departments, Maintenance and Personnel. Maintenance Department

(MD) costs of €307099 are allocated on the basis of budgeted

maintenance-hours. Personnel Department (PD) costs of €170 000 are allocated

based on the number of employees. The costs of operating departments A and B

are €200 000 and €300 000, respectively. Data on budgeted maintenance-hours and

number of employees are as follows:

Using the direct method, what amount of Maintenance Department costs

will be allocated to Department B?

Company X uses the first-in, first-out system of process costing.

What were the costs assigned to the units transferred out this period? (

Company X

produced three joint products at a joint cost of €126296. Two of these products were processed further.

Production and sales were:

If the company uses NRV method to allocate the joint costs of

production, what is the gross-margin percent for product C? (Round to 2

decimal places)

Which of the following linear equations represents the

complete reciprocated cost of the Personnel Department (Cost of PD)?