Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed



Download 1.72 Mb.
View original pdf
Page162/469
Date01.12.2021
Size1.72 Mb.
#57828
1   ...   158   159   160   161   162   163   164   165   ...   469
solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1

Barrels
per hour
Working
hours
per day
Working
days
per year


Capacity
Theoretical capacity Practical capacity
600 500 24 20 365 350
= 5,256,000
= 3,500,000
3
The smaller the denominator, the higher the amount of overhead costs capitalised for stock units. Thus, if the plant manager wishes to be able to adjust plant operating profit by building up stock, master-budget utilisation or possibly normal utilisation would be preferred.


Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012
7.21
Operating profit effects of alternative denominator-level concepts.
(30 min)
1
Solution Exhibit 7.17 reports the operating profit for each denominator-level concept. Calculations include


Download 1.72 Mb.

Share with your friends:
1   ...   158   159   160   161   162   163   164   165   ...   469




The database is protected by copyright ©ininet.org 2024
send message

    Main page