Question # 1 : Verify the overhead cost per unit reported by the consulting group using direct
Question:
Question #: Verify the overhead cost per unit reported by the consulting group using direct labor hours to assign overhead. Compute the perunit gross margin for each product.
Question #: After learning of activitybased costing, Patty asked the controller to compute the product cost using this approach. Recompute the unit cost of each product using activitybased costing. Compute the perunit gross margin for each product.
Question #: Should the company switch its emphasis from the highvolume product to the lowvolume product? Comment on the validity of the plant managers concern that competitors are selling below the cost of making Part #
Question #: Explain the apparent lack of competition for Part # ?Comment also on the willingness of customers to accept a ?percent increase in price for Part #
Question #: Assume that you are the manager of the plant. Describe the actions you would take based on the information provided by the activitybased unit costs.
Basic Technical Mathematics
ISBN: 9780137529896
12th Edition
Authors: Allyn J. Washington, Richard Evans