ACCT 452 Advanced Managerial Accounting
Case study
Please check that the conversion costs of $1.271 million attributed to galvanized pallet nails for the financial year 1996/97 (see table 2 of the case study) are correct. To do this please prepare a spreadsheet in which you use the information in exhibits 4, 5, and 6 to produce an ABC analysis for 1996/97 for galvanized pallet nails.
For example, the costs of the cleaning cost pool in 1996/97 were $222,000. The activity volume of this cost pool was 110,000 tons. The cleaning cost per 1 ton was therefore 222,000/110,000=$2.01818. How much ABC cost is attributable to galvanized pallet nails? Exhibit 5 says they produced 2817 tons of galvanized pallet nails. Hence the ABC cost for galvanized pallet nails is 2817*2.01818=$5,685.21.
Use this way of working through all the cost pools to determine the total 1996/97 ABC conversion cost for galvanized pallet nails. You know the total should be $1.271 million according to table 2. If it is not the same then maybe the accountants at Andrews made a mistake?
Your case study assignment will be graded based on the following rubric:
Category | Unacceptable (0-1) | Needs Improvement (2-3) | Good (4) | Excellent (5) | Total Possible Points |
Organization (x3) | There is no apparent organization to the answers. They shows some coherence but ideas lack unity. | There is some level of organization though digressions, ambiguities, irrelevance are too many. Transition evident but not used throughout the paper. | Answers are coherent and logically organized with transitions used between ideas and paragraphs to create coherence. Overall unity of ideas is present. | Answers show high degree of attention to logic and reasoning of points. Unity clearly leads the reader to the conclusion and stirs thought regarding the topic. | 15 |
Content (x3) | Answers lack evidence of critical thinking. Writer uses superficial, simplistic, or irrelevant reasons and unjustifiable claims. Makes illogical, inconsistent inference. | Answers are primarily opinion without valid support. Little critical thinking is evident. Follows existing evidence to obtain conclusions. | Ideas are logical and reasoned, but demonstrate lesser degree of originality. Follows evidence and reason lead to obtain justifiable, logical conclusion. | Writer develops logical and reasoned independent ideas that go beyond predictable outcomes or the conclusions of researched materials. Follows where evidence and reason lead in order to obtain defensible, thoughtful, logical conclusions or solutions. | 15 |
Grammar & Mechanics(x2) | Sentences are unclear and many grammatical errors in structure make answers virtually unreadable. Spelling, punctuation, capitalization, and vocabulary usage contain major flaws that impede readability. | Most spelling, punctuation, and grammar correct allowing reader to progress through the answers. Some errors remain. | Answers have few spelling, punctuation, and grammatical errors allowing reader to follow ideas clearly. Very few fragments or run-ons. | Answers are free of distracting spelling, punctuation, and grammatical errors; absent of fragments, comma splices, and run-ons. | 5 |
ACCT 452 Advanced Managerial Accounting