Kaplan The past 40 years has seen a large increase in the number of articles submitted to journals ranked in the top-5 of their discipline. This increase is the rational response, by faculty, to the overweighting of publications in these journals by university promotions and tenure committees. The ranking factors for academic journals, however, arose for a completely different purpose, to guide the journal acquisition decisions by budget-constrained university librarians. In addition, a third type of error gets introduced as faculty pursue the research they perceive is favored by editors of top-5 journals, at the potential expense of more innovative and relevant research, perceived to be unpublishable in a top-tier journal.
The Wilkerson case is an excellent instrument to test your understanding of the main concepts of But Manufacturing Overhead MOH is an indirect cost and needs to be allocated to products according to an allocation rate see Step 5 in chapter exhibits and This MOH rate means: You can confirm this in case exhibit 2: If the company implements ABC, the first step is to calculate budgeted indirect cost rates as in step 5, chapter exhibit The Wilkerson company case questions at the end of the case are too general and make it difficult to get started on your analysis.
Instead of the two questions at the end of the case, follow these questions I prepared to guide your analysis: Build a table for Wilkerson similar to chapter exhibit Show, for each activity, the cost hierarchy category, the total budgeted indirect costs, the budgeted quantity of cost-allocation base, the budgeted indirect cost rate and explain the cause-and-effect relationships between the cost allocation base and the activity cost.
Using the budgeted indirect cost rates you calculated for question 1, allocate the MOH to the three product lines of valves, pumps and flow controllers based on the operating statistics from case exhibit 4. Instead of two product lines simple lenses and complex lenses Wilkerson has three product lines; direct costs are just DL and DM; and there are several indirect cost of activities MOH.
Show total costs per product line and per unit. You may use chapter exhibit as a template.
What caused such large differences in cost estimates from the simple costing system to ABC system? Calculate the profitability of each product line using the simple costing system and the ABC system you will need actual prices from case exhibit 2.
Which product line is really most profitable? Under the simple costing system, which product lines were undercosted and overcosted see discussion on pp. What recommendations do you have for Wilkerson to increase product gross margins? Offer suggestions for prices of the product lines and possible cost reduction strategies.
Browse hundreds of Accounting tutors.The president of Wilkerson, faced with declining profits, is struggling to understand why the company is encountering severe price competition on one product line while able to raise prices without competitive response on another product line.
The controller proposes that the company develop an. The president of Wilkerson, faced with declining profits, is struggling to understand why the company is encountering severe price competition on one product line while able to raise prices without.
1. Using the information in the case, design an activity-based costing system and estimate product costs and gross margin percentages for valves, pumps and flow controllers.
A Brazoria County jury on Monday convicted Hermilo Moralez, who was charged with murder in the beating death of his missing classmate, Josh Wilkerson.
The punishment, or sentencing, phase of. Wilkerson Co. Case Solution,Wilkerson Co. Case Analysis, Wilkerson Co. Case Study Solution, President Wilkerson, faced with a decline in profits, is struggling to understand why the company is facing stiff competition in prices for the same produc.
Case study. In the Wilkerson Company case study of Harvard Business School, the main issue that the company is facing lower pre-tax operating margin (3%) comparing to historical pre-tax operating margin of 10%.
Currently, the company uses simple Overhead.