MBA7214 Management Accounting

Now that you have a beginner’s level of understanding of the manufacturing of rubber tires, prepare a report which should include answers to the following questions:
How much does it cost to manufacture tires?
oBreak down these costs by variable and fixed and break down the variable costs into direct labor, direct materials and manufacturing overhead.
What is the breakeven # of tires manufactured in a plant?
How many tires are needed to be manufactured if the company has a target net income of 10% after tax? (Assume 30% tax rate)
How would you allocate manufacturing overhead to the tires and why?
How would you deal with (under)/over applied overhead?
Explain the various reasons you may have for direct material cost variances and direct labor variances?

 

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