Question: Accounting 440 Project 2 - Activity Based Costing (B) BKM Foundry manufactures different kinds of equipment used by the aerospace, commercial aircraft, and electronic industries.


Accounting 440 Project 2 - Activity Based Costing (B) BKM Foundry manufactures different kinds of equipment used by the aerospace, commercial aircraft, and electronic industries. Twenty different products are created using two major manufacturing processes: molding and assembly. Two other processes in the plant are procurement and sustaining. The activity and product relational tables are given on the following page (for simplicity, only two products of the twenty produced are shown in the product relational table) Activity Relational Table: BKM Foundry Activity Name Activity Capacity Cost Level ProducNo. of products Product No. of products Batch Batch Activity Process Activity Driver 20600,000 20 320,000 400 120,000 400 120,000 40 130,000 40090,000 200,000225,000 1,000 200,000 1,000 320,000 20,000 180,000 20,00020,000 20,000 50,000 Designing molds Making molds Inspecting molds Molding Molding Molding Setting up batches Molding No. of setups No. of setups 4 5 Engineering designAssembly Product Change orders No. of subassemblies Machine hours Purchase orders Purchase orders Materials handling Assembly Machiningg Batch Assembl Unit 8 Purchasing materials Procurement Batch Receiving materials Procurement Batch Procurement Product No. of molds 10 Paying suppliers 11 Providing utilities Sustaining Facility Machine hours 12 Pviding space Sustaining Facility Machine hours Accounting 440 Project 2 - Activity Based Costing (B) BKM Foundry manufactures different kinds of equipment used by the aerospace, commercial aircraft, and electronic industries. Twenty different products are created using two major manufacturing processes: molding and assembly. Two other processes in the plant are procurement and sustaining. The activity and product relational tables are given on the following page (for simplicity, only two products of the twenty produced are shown in the product relational table) Activity Relational Table: BKM Foundry Activity Name Activity Capacity Cost Level ProducNo. of products Product No. of products Batch Batch Activity Process Activity Driver 20600,000 20 320,000 400 120,000 400 120,000 40 130,000 40090,000 200,000225,000 1,000 200,000 1,000 320,000 20,000 180,000 20,00020,000 20,000 50,000 Designing molds Making molds Inspecting molds Molding Molding Molding Setting up batches Molding No. of setups No. of setups 4 5 Engineering designAssembly Product Change orders No. of subassemblies Machine hours Purchase orders Purchase orders Materials handling Assembly Machiningg Batch Assembl Unit 8 Purchasing materials Procurement Batch Receiving materials Procurement Batch Procurement Product No. of molds 10 Paying suppliers 11 Providing utilities Sustaining Facility Machine hours 12 Pviding space Sustaining Facility Machine hours
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