rn 1 Simplifying the ABC System: Approximately Relevant ABC Systems Patterson Company produces wafers for integrated circuits.
Fantastic news! We've Found the answer you've been seeking!
Question:
rn
Transcribed Image Text:
1 Simplifying the ABC System: Approximately Relevant ABC Systems Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: Activity Inserting and sorting process activities: 1. Developing test programs $ 45,000 2. Making probe cards 60,000 3. Testing products 600,000 4. Setting up batches 140,000 5. Engineering design 96,000 6. Handling wafer lots 400,000 7. Inserting dies 1,100,000 Procurement process activities: 8. Purchasing materials 9. Unloading materials 10. Inspecting materials 11. Moving materials 12. Paying suppliers Total activity cost 500,000 63,000 84,000 100,000 37,000 $ 3,225,000 Unit-level (plantwide) cost assignment² Activity cost assignment Driver Engineering hours Development hours Test hours Number of batches Number of change orders Number of moves Number of dies Number of purchase orders Number of receiving orders Inspection hours Distance moved Number of invoices $2,257,500 $1,644,200 $967,500 $1,580,800 Expected Consumption Ratios Wafer A Wafer B 0.25 0.15 0.60 0.55 0.20 0.45 0.70 0.15 0.35 0.65 0.55 0.30 * Calculated using number of dies as the single unit-level driver. b Calculated by multiplying the consumption ratio of each product by the cost of each activity. Required: 0.75 0.85 0.40 0.45 0.80 0.55 0.30 0.85 0.65 0.35 0.45 0.70 1 Simplifying the ABC System: Approximately Relevant ABC Systems Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: Activity Inserting and sorting process activities: 1. Developing test programs $ 45,000 2. Making probe cards 60,000 3. Testing products 600,000 4. Setting up batches 140,000 5. Engineering design 96,000 6. Handling wafer lots 400,000 7. Inserting dies 1,100,000 Procurement process activities: 8. Purchasing materials 9. Unloading materials 10. Inspecting materials 11. Moving materials 12. Paying suppliers Total activity cost 500,000 63,000 84,000 100,000 37,000 $ 3,225,000 Unit-level (plantwide) cost assignment² Activity cost assignment Driver Engineering hours Development hours Test hours Number of batches Number of change orders Number of moves Number of dies Number of purchase orders Number of receiving orders Inspection hours Distance moved Number of invoices $2,257,500 $1,644,200 $967,500 $1,580,800 Expected Consumption Ratios Wafer A Wafer B 0.25 0.15 0.60 0.55 0.20 0.45 0.70 0.15 0.35 0.65 0.55 0.30 * Calculated using number of dies as the single unit-level driver. b Calculated by multiplying the consumption ratio of each product by the cost of each activity. Required: 0.75 0.85 0.40 0.45 0.80 0.55 0.30 0.85 0.65 0.35 0.45 0.70
Expert Answer:
Answer rating: 100% (QA)
Activity Activity Wafer A Wafer B 1 Testing Products 060 040 Handling Water Lots 045 055 Inserting D... View the full answer
Related Book For
Elementary Linear Algebra with Applications
ISBN: 978-0471669593
9th edition
Authors: Howard Anton, Chris Rorres
Posted Date:
Students also viewed these accounting questions
-
The norm of a linear transformation TA: Rn Rn can be defined by where the maximum is taken over all nonzero x in Rn. (The subscript indicates that the norm of the linear transformation on the left is...
-
Suppose that f: Rn R and g: Rn Rn are differentiable on Rn and that there exist r > 0 and a Rn such that Dg(x) is the identity matrix, I, for all x Br(a). Prove that there is a function h: Br(a) {a}...
-
Let 5: Rn Rn and T: Rn Rn be linear transformations with matrices A and B respectively. [Theorem 3.] (a) Show that B2 = B if and only if T2 = 7 (where T2 means T o T). (b) Show that B2 = 1 if and...
-
According to Thomson Financial, last year the majority of companies reporting profits had beaten estimates. A sample of 162 companies showed that 114 beat estimates, 29 matched estimates, and 19 fell...
-
A moveable steel stand supports an automobile engine weighing W = 750 lb as shown in figure part (a). The stand is constructed of 2.5 in. ( 2.5 in. ( 1/8 in. thick steel tubing. Once in position the...
-
The income statement for Granville Manufacturing Company is presented below. Granville Manufacturing Company Income Statement For the year ended December 31, 2019 The following balance sheet changes...
-
Verify that the Tweedie distribution is a member of the linear exponential family of distributions by checking equation (13.9). In particular, provide an expression for \(S(y, \phi)\) (note that...
-
A particle P travels with constant speed on a circle of radius r = 3.00m (Figure) and completes one revolution in 20.0 s. The particle passes through O at time t = 0. State the following vectors in...
-
To create the essence of the organizational change leaders should be transparent, balanced, and focused. Which of the models of change and intervention is most effective at balancing interests,...
-
The Harriet Hotel in downtown Boston has 100 rooms that rent for $150 per night. It costs the hotel $30 per room in variable costs (cleaning, bathroom items, etc.) each night a room is occupied. For...
-
Mideque, inc. is considering a project to produce pens. It is estimates that the initial cost of the equipment including transportation installation and so forth will be $24,000. Mideque also...
-
If an organization makes and sells one more unit, the resulting net additional funds to the organization is termed?
-
What is the implied forward exchange rate between Sweden and Malaysia, if the Malaysian Ringgit offers a one-year interest rate on otherwise risk-less securities of 5.7%, and the Swedish krona offers...
-
The traditional Banking and Financial Service Industry within the Caribbean should fully integrate with emerging blockchain technologies to improve security and transparency and reduce exposure to...
-
4. An investment promises 5 equal annual payments of $896, with the first payment occurring in 5 years. If the interest rate is 6%, what is the PV of the payments today (i.e., at t=0)? 5. What is the...
-
Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.31 million. The fixed asset will be depreciated straight- line to zero...
-
An MMDA account has a minimum balance requirement of $ 1 , 0 0 0 and the depositor can have a maximum of 3 checks or transfers from the account each month. The bank pays 5 . 2 5 percent interest on...
-
Define deferred revenue. Why is it a liability?
-
In each part, find a 6 6 matrix [aij] that satisfies the stated condition. Make your answers as general as possible by using letters rather than specific numbers for the nonzero entries. aij = 0 if...
-
Let R3 have the Euclidean inner product. Find an orthonormal basis for the subspace spanned by (0, 1, 2), (-1, 0, 1), (-1, 1, 3).
-
Solve the following homogeneous systems of linear equation by any method. 3x1 + x2 + x3 + x4 = 0 5x1 - x2 + x3 - x4 = 0
-
What are the key differences between financing entrepreneurial and established companies?
-
What steps are needed to show that entrepreneurial finance is beneficial to the economy at large?
-
What are the main challenges that entrepreneurs and investors face at the four steps of the funding cycle, as described in the FIRE framework?
Study smarter with the SolutionInn App