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 Case typemoon.org
The make-up of this overhead is indirect labour, fringe benefits, computer systems, machinery, maintenance, and energy. When Classic only had two different colored pens, overhead allocation rate was much lower because the number of direct labor hours making the products was lower than when the new products were added. Case Overview — Classic Pen Co. Classic Pen had been the low-cost producer of traditional BLUE pens and BLACK pens. Teaching Note Exhibit 2 displays the calculations relevant to this decision.
This would sort production into categories giving each a unique contribution margin. With the coming products production started to cry out on the difficulties of producing the new red and purples stating that they need extra workload for production, planning and keeping track of the information. Case In the past Classic Pen Company had been the low-cost producer of black and blue pens and had profit margins over 20% of sales. Even though the numbers show the red and purple pens are more profitable individually red 14. If investment of new machinery is not doable for the company, it would be best to try and cut cost, and focus on standard pens for future investments. The case can be taught in a 75-minute class, or by omitting the decision analysis question 50 minutes would be sufficient.
Then choose a cost driver and calculate the rate per unit of the cost driver. If overhead costs are fixed, the increase in volume and direct labor would leave total overhead costs unchanged and decrease the rate. What would be your recommendation to the pencil manufacturer? Perhaps AVS is paying too much for this grape, or they are underpricing the wine. Order custom essay Classic Pen Co. Toys should change its existing cost accounting system from traditional costing to activity-based costing because it is calculating its manufacturing overhead on only one cost, direct labour. Additionally, alternative decision analysis questions could be developed using the variable and fixed cost structures described in the case.
Arguably, it could be listed as a variable cost, given that the cost will be based on the number of wines produced. A barrel holds the equivalent of 40 cases of wine post-fermenting , or 1,440 pounds of grapes 40 x 36. Case: A Votre Sante Page 5 of 17 Utilities — Utility costs are incurred primarily to maintain a constant temperature in the fermenting process. By using Activity-based costing, each doll would have a different manufacturing overhead allocated to it. Student: 1234 All Students But Dempsey had just seen the financial results see Exhibit 1 for the most recent fiscal year and was keenly disappointed. Additionally, the report will discuss various issues Ringo faces in determining its actual manufacturing cost. Summary The AVS case is based upon actual wine industry data, although the data has been simplified to reinforce the teaching points and concepts.
The answer to this cannot be fathomed by data in the case, and is subject to many other variables such as the strength of the harvest and strength of the wine market ; however, it is mentioned here as a performance measure that is used in the industry. This report will analyze the different manufacturing costs associated with each supplier. On the financial data it was clearly seen that the overhead cost increased drammatically compared to previous years from 200% to 300% when only blu and black was produced and the profit margin is eroded from 20% to 13,5%. However, there is concern at the company with the fixed cost of operations. Sales Manager Dennis Selmor is just seeing the financial results and is not happy with the numbers.
. Unfortunately, this strategy which otherwise should be driving profitability is now exhibiting an overall decline in profits as per the financial results. The red and purple inks also did not disguise residual ink left in the vat nearly as well as the black ink could, so not only were the emptying the vats more often, they were spending a great deal more time cleaning them out in order to meet the color quality standards needed in order to sell the pens. Students must know the difference between product and period costs to successfully complete the ABC analysis, but they could be made more explicit by requiring the statements. It is estimated that 80 pounds of grapes can be harvested each hour. Two activity cost pools were developed: machining and machine setup.
What would you recommend to Kay Aproveche regarding the ABC analysis? Use this Case: A Votre Sante Page 6 of 17 information, along with the information given in the case, to construct a product cost analysis using ABC. Order custom essay Classic Pen Case with free plagiarism report In the second income statement that was created in the problem, instead of basing these costs on sales they were based upon certain drivers, such as the number of runs and the amount of time preparing the machine and reports done for each product. The second is not visible in the preview. Question 2: Additional Purchase Opportunity, Quantitative Analysis Case Question 2 asks what is the maximum amount that AVS would pay to buy an additional pound of Chardonnay grapes. They could invest in more computers to increase the amount of scheduling being done by computers and as a result lower their indirect labour costs. With the new production costs added in, will the Mendel Paper Company have what it takes to succeed? Add two lines at the bottom of the income statement: one line shows the operating profit per unit for each type of pen-based on your ABC calculations, and the other line shows the operating profit per unit based on the traditional-income calculations in Exhibit 1 of the case. Using ABC to assign costs is especially beneficial where there exists either variation in processes or variations in cost object requirements.
It requires a substantial amount of time for physical changeover of production from one colour pen to another. A second issue that Pen Co. The second supporting calculation is an ABC income statement showing sales revenue minus each type of direct and indirect cost assigned to the four pen types. A well-defined ABC cost allocation will provide more accurate costing information than a less-sophisticated cost allocation system. The first supporting calculation is an ABC system for Classic Pen, constructed by filling in the blanks in the following table.
This factor results in 63 62. The 27,000 pounds of grapes will result in an additional 9,000 bottles of Chardonnay regular wine being produced. Because of the different yield rates in the fermenting process, the case had the wines ferment separately and blend at the end. A second issue that Pen Co. A 151% difference can be seen for the Purple Pen, for example.