Shun Electronics Company
1. Where did the figures in the case Exhibits 1, 2 and 3 come from and how were they computed? 2. Explain why the shelf shower radio cost has changed from M$61.00 under the old allocation system to M$67.56 under the new allocation system. 3. What do you think prompted Manjit’s redesign of the product costing system? 4. Manjit has revised the definition of overhead cost pools. Has this improved the radio product costs? 5. Has Manjit improved the radio product costs through his choice of allocation base? 6. How would you recommend Shun Electronics calculate the product cost of their radios? 7. What are the “true” product costs of the radios? 8. If plant capacity was limited to 6000 units, what combination of radios should Shun Electronics produce and why?
Attachments:
1st3StudentCa….pdf