Hans Sorensen, Controller of Franklin Production, Has the Choice of Allocating

question 139

Essay

Hans Sorensen, controller of Franklin Production, has the choice of allocating indirect manufacturing cost using either direct manufacturing labour hours or manufacturing machine hours.If he uses labour hours for the month of January, Product A receives $312,000 in manufacturing overhead charges and Product B receives $448,000.When machine hours are used Product A receives $352,000 in manufacturing overhead charges while Product B receives only $408,000.Required:You are the department manager in charge of Product A and are strongly in favour of using labour hours.Of course, your co-manager, who is in charge of Product B, is strongly in favour of machine hours.What are some arguments you may be able to give for the allocation base that favours your department's product?

Know the elements that comprise the team performance equation and how actual productivity is determined.

Understand the nuanced effects of team size on performance, support perception, and motivation.

Understand the factors that contribute to learning curves and expertise development.

Recognize the role of social presence and audience effects on performance improvement.

---

Definitions:

Microorganisms

Tiny, living organisms, often microscopic, that include bacteria, viruses, fungi, and protozoa, sometimes beneficial and sometimes harmful to humans, animals, and the environment.

FDA

FDA stands for the Food and Drug Administration, a federal agency of the United States responsible for protecting public health by ensuring the safety, efficacy, and security of human and veterinary drugs, biological products, and medical devices.

OSHA

The Occupational Safety and Health Administration, a U.S. federal agency that sets and enforces standards to ensure workplace safety and health.

Health Care Results

Outcomes or consequences of medical treatment and interventions, often measured to assess the effectiveness of healthcare services.