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Identifying joint and separable costs: Outback Cattle Company raises cattle and sells beef products. Following is a list of costs for the operation.

REQUIRED

Identify whether each cost is most likely a (J) joint cost or a (S) separable cost. For each item, explain why.

1. Veterinary costs for the calves
   
2. The cost of grinding meet for mince
   
3. The cost of feed for the cattle
   
4. The cost of labour to manage the cattle while they grow
   
5. The cost of labour to prepare the cowhide for sale as leather
   
6. The cost for packaging steaks and roasts
   
7. The depreciation on the sheds that provide shelter for the cattle
   

الثاني

Excercise: Job Costing, determination of manufacturing overhead rates

Sheldon Manufacturing estimates the following activity for 2011:

Expected production = 10 000 units

Expected direct labour hours = 10 000 hours

Expected manufacturing overhead = $100 000

Manufacturing overhead is allocated on the basis of direct labour hours.

At the end of the financial period the following information was collected:

Direct labour hours = 9000 hours

Manufacturing overhead = $120 000

Required:

(a) What was the predetermined manufacturing overhead rate calculated at the beginning of 2011?

( What was the actual manufacturing overhead rate for 2011?

© Explain the difference between the rates calculated in (a) and ( above.

الثالث

By-product further processing decision: For a given by-product, 100 units can be sold at the split-off point for $8 each, or processed further at a cost of $12 each and sold for $19.

Required

Should the by-product be processed further? Provide calculations and explain your answer.

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