Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products:

Required:
1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor hours.
2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department
2. Repeat using direct labor hours for Department 1 and machine hours for Department 2.
3. Compute the overhead cost per unit for each product using activity-based costing.
4. Comment on the ability of departmental rates to improve the accuracy of product costing.
4.37 ABC software is a critical component of an ABC system implementation. ABC software produces the results that will be used by decision makers. Thus, the capabilities of ABC software are extremely important. The choice of ABC software can have a dramatic effect on the success or failure of an organization€™s ABC initiative. Non-ERP companies may choose stand-alone ABC software packages. Depending on the size of the application, PC software may be adequate. The emergence of ERP systems (and, of course, ERP software) is also having an effect on ABC software selection. ERP companies will not usually choose stand-alone ABC software. Essentially, ERP systems demand some form of integration. Two choices are available for achieving this integration:
1. An ERP system that has an add-on module.
2. ABC software that has linking and importing capabilities to establish a bridge between the two systems.
Required:
1. Using an Internet search, identify three stand-alone software packages that have the following features:
a. Windows 2000 or higher platform or Windows XP platform
b. ABC budgeting
c. Excel interface
d. Data export
e. Profit analysis
f. Resource, activity, and cost object modules and possibly more
After identifying software with the above features, which would you select? Why? Are there other important features that you read about that you would like to include as part of the selection criteria?
2. ERP and ABC vendors have joined forces in creating an ABC-ERP partnership. Search the Internet for two online articles that discuss ABC and ERP software issues. Write a brief summary of each article.

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Product-Related Data Scientific Business Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours 75.000 $250,000 100,000 50,000 100 2,000 2,250 750,000 S2,500,000 1,000,000 500,000 150 3,000 9,000 Department Data Department 1 Department 2 Direct labor hours: Scientific calculator Business calculator 75,000 112,500 187,500 25,000 887,500 912,500 Total Machine hours: Scientific calculator Business calculator 25,000 400,000 425,000 25,000 100,000 125,000 Total Overhead costs: Setup costs S225,000 175,000 250,000 200,000 $850,000 $225,000 175,000 150,000 250,000 S800,000 spection costs Power Maintenance Total