Classic pen case. Classic Pen Co. Case (600 Words) 2022-10-28
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A classic pen case is a timeless and practical accessory that can be used by anyone, from students to professionals. It is a compact and convenient way to store and transport pens, pencils, and other writing instruments.
A classic pen case is typically made of leather or other durable materials such as canvas or nylon. It is designed to protect the pens and pencils inside from damage, such as scratches, dents, and ink spills. Many classic pen cases also have additional compartments or pockets to store other small items such as erasers, sharpeners, or even paper clips.
One of the main advantages of a classic pen case is its compact size. It can easily fit into a backpack, briefcase, or purse, making it convenient for those who need to take their writing instruments with them on the go. This is particularly useful for students who may need to bring their pens and pencils to class or for professionals who need to have their writing tools readily available for meetings or presentations.
In addition to its practicality, a classic pen case can also be a stylish accessory. Many classic pen cases are available in a range of colors and designs, making it easy to find one that matches an individual's personal style. This can be particularly important for professionals who want to present a polished and professional appearance.
Overall, a classic pen case is a practical and stylish accessory that can be used by anyone who needs to store and transport pens and pencils. Whether you are a student, a professional, or just someone who enjoys writing, a classic pen case can be a useful and convenient tool to have on hand.
Classic Pen Company Case
Lab and Supervision Activities — Kan Pai estimates that these activities are split 60% Chardonnay-Estate, 25% Chardonnay regular, and 15% Blanc de Blanc. The 27,000 pounds of grapes will result in an additional 9,000 bottles of Chardonnay regular wine being produced. The Chardonnay wine grape is fermented using oak barrels; the oak in the barrels gives flavor to the Chardonnay wine. You will receive access to two case study solutions! Question 4: ABC Quantitative Analysis Teaching Note Exhibit 3 contains the ABC product costing analysis, and shows both the per product line and per-unit costs. Even though the numbers show the red and purple pens are more profitable individually red 14. Question 1: Contribution Margin Income Statement To develop the contribution margin income statement, you first have to calculate the number of bottles of wine produced by AVS. COMPANY DATA Company is producing the following unit of products with correcponding Sales Revenues.
The generic white grape juices are fermented in a holding tank; a full tank would result in the production of 1,500 cases of wine. . Case: A Votre Sante Page 5 of 17 Utilities — Utility costs are incurred primarily to maintain a constant temperature in the fermenting process. AVS has the opportunity to buy the juice from these grapes they have already been harvested and crushed. It was found that by instituting large production runs at a minimum of 900 units, the Classic Pen Company can minimize indirect costs and operate much more profitably.
Students should question whether this makes sense, and note that AVS might decrease costs in the Blanc de Blanc line by buying lower-priced bottles, labels, and corks. If overhead costs are variable, the increase in volume and direct labor would increase total overhead costs but not the overhead rate. Once the juice is extracted, it moves into the fermenting process. Computer paper and poster boards have slowly increased in demand as well. They require the same basic production technology but can be sold at 3% and 10% premium selling prices. TEACHING NOTE: A VOTRE SANTE The A Votre Sante AVS case is multi-faceted in that it requires students to incorporate operational measures into product costing results, and also to understand cost accounting from a variety of perspectives, such as Product versus period costs Variable versus fixed costs Activity-based costing Relevant costs and opportunity costs Additionally, the case questions require both quantitative and qualitative analyses of the business issues faced by AVS.
The juice is used to make the wine; the pulp, skin, and stems are recycled back onto the fields whenever possible or otherwise disposed of. The process of winemaking is fairly simple, yet requires much attention to process details. Purple pens sell for ten cents more than blue pens, and material costs are only five cents higher. This can be a valuable three step process for more accurate tracking of indirect costs to be used in managerial decisions. The amount of wine generated from the grapes is dependent each year on a number of climatic and growth factors such as temperature, length of the growing season, rootstock, and fertilizers used. Most of the indirect labour costs and computer system costs are related to scheduling and purchasing.
Case Overview — Classic Pen Co. So, I recommend GG tokeep the existing cost accounting system as the primary cost driverhere is labor hours which is being rightly applied as the cost allocation basis. Different types of dolls require different amounts of machine hours and other variable costs. The first supporting calculation is an ABC system for Classic Pen, constructed by filling in the blanks in the following table. This person orders supplies, reviews and approves production invoices, and performs other administrative functions. Case: A Votre Sante Page 12 of 17 Question 5: ABC Qualitative Analysis The first part of this question asks for an explanation of ABC, and a discussion of the benefits and costs of an ABC analysis.
This will not only reduce Hines working time and increase the production capacity also control the whole production and design processes completely. A few years ago it was only about 200%. Assume that AVS did not buy the grapes referred to in Question 2. What would be your recommendation to the pencil manufacturer? The ABC outcome demonstrates that the Chardonnay-Estate is the most profitable wine for AVS, the Chardonnay-Regular is marginally profitable, and the Blanc de Blanc is not profitable. After looking at the results of the ABC analysis, it is clear that the Chardonnay-Estate wine is driving the profitability of AVS. Arguably, it could be listed as a variable cost, given that the cost will be based on the number of wines produced.
Toys is calculating its manufacturing overhead costs ononly on one cost driver, the direct labor. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Includes costs of crusher equipment and crush labor. Sales Manager Dennis Selmor is just seeing the financial results and is not happy with the numbers. Write a concise explanation.
Fermenting Activities — Barrel costs relate to the Chardonnay wines by the percentage of wine used in each wine type. Classic Pen had been the low-cost producer of traditional BLUE pens and BLACK pens. While the cost for direct labour per one unit is the same for each colour of pen produced. The first issue that Pen Co. By adding just two more ink colors, red and purple, the number of direct labor hours significantly increased, which also increased the overhead rate because production was largely increased. Toys should change its existing costaccounting system from the legacy or traditional costing methodologyto activity-based costing ABC. It is this relatively large amount spent on indirect labor for purple pens, not the material costs, that causes them to turn such a lower profit than the blue pens.
What would you recommend to Kay Aproveche regarding the ABC analysis? This would sort production into categories giving each a unique contribution margin. Inspection: As a starting point of the investigation, we derived the cost price per pen in the traditional income statement format which was currently used by Classic Pen Co. Note: Do not break out the variable or the fixed costs by type of wine. Teaching Note Exhibit 2 displays the calculations relevant to this decision. This helped to allocate the costs of indirect labor and overhead specifically to the products that were using these resources, helping to give a more realistic picture of the revenue generated for a certain color pen versus the costs spent making them. Write a brief memo to Kay Aproveche that explains what ABC is, and that discusses both the benefits and costs of doing an ABC analysis.
The case can be taught in a 75-minute class, or by omitting the decision analysis question 50 minutes would be sufficient. This number is dependent upon the yield from the grapes. Other production activities and costs not directly associated with a specific wine — allocate according to the number of bottles produced of each wine. Unfortunately, this strategy which otherwise should be driving profitability is now exhibiting an overall decline in profits as per the financial results. Alternative uses could be to have the student construct a cost of goods manufactured statement or a traditional financial statement, both of which reinforce the differences between product and period costs. For a small company such as AVS, software costs would be minimal; the ABC system could easily be constructed using a spreadsheet program.
