BUS 630 Week 3 DQ 1 Fixed Labor

1
BUS 630 Week 3 DQ 1 Fixed Labor To purchase this
material link http//www.assignmentcloud.com/BUS-
630/BUS-630-Week-3-Assignment-JetBlue-Airways Fa
r North Telecom, Ltd., of Ontario, has organized
a new division to manufacture and sell specialty
cellular telephones.  The divisions monthly
costs are shown in the table below.  Far North
Telecom regards all of its workers as full-time
employees and the company has a long-standing no
layoff policy.  Furthermore, production is highly
automated.  Accordingly, the company includes its
labor costs in its fixed manufacturing overhead. 
The cellular phones sell for 150 each.  During
September, the first month of operations, the
following activity was recorded 12,000 units
produced, 10,000 units sold.  Comment on the five
questions below the table.  Respond to at least
two of your fellow students postings.  Manufactur
ing costs   Variable costs per unit   Direct
Materials 48 Variable manufacturing
overhead 2 Fixed manufacturing overhead costs
(total) 360,000 Selling and administration
costs  
2
Variable 12 of sales Fixed (total) 470,000 a. 
Compute the unit product cost under        
i.  absorption costing         ii.  variable
costing b.  Prepare an absorption costing income
statement for September c.  Prepare a
contribution format income statement for
September using variable costing. d.  Assume that
the company must obtain additional financing in
order to continue operations.  As a member of top
management, would you prefer to rely n the
statement in (b) above or in (3) above when
meeting with a group of prospective
investors? e.  Reconcile the absorption costing
and variable costing net operating incomes in (2)
and (3) above.  Complete the following exercise
(Research and Application 7-20) and submit to
your instructor.The questions in this exercise
are based on JetBlue Airways Corporation.  To
answer the questions, you will need to download
JetBlues 10-K/A for the year ended December 31,
2004 (10K/A with a filing date of March 8, 2005).
 You do not need to print the 10-K/A to answer
the questions.Required     What is JetBlues
strategy for success in the marketplace?  Does
the company rely primarily on a customer
intimacy, operational excellence, or product
leadership customer value proposition?  What
evidence supports your conclusion?   
3
 What business risks does JetBlue face that may
threaten the companys ability to satisfy
stockholder expectations?  What are some examples
of control activities that the company could use
to reduce these risks? (Hint Focus on pages
17-23 of the 10-K/A.)     How can the concept of
unit-level activities be applies to an airline?
 More specifically, what are two examples of
unit-level activities for JetBlue?  What steps
has JetBlue taken to manage these unit-level
activities more efficiently?     How can the
concept of batch-level activities be applied to
an airline?  What are two examples of batch-level
activities for JetBlue?  What steps has JetBlue
taken to manage these batch-level activities more
efficiently?     What is one example of a
customer-level activity and an organization-sustai
ning activity for JetBlue?Noreen, E. W., Brewer,
P. B., Garrison R. H. (2011).  Managerial
accounting for managers (2nd ed.). New York, NY
McGraw Hill.  ISBN  978-0-07-352713-0. For more
courses visit our website http//www.assignmentc
loud.com/