Can I get help with the attached assignment? Thanks!

1. Mountain Brew Corporation manufactures two models of coffee makers: a standard and a deluxe model. The following activity and cost information has been compiled.

ProductNumber ofSetupsNumber of Total ComponentsDirect Labor Hours

Standard 20 10 375

Deluxe 30 15 225

Overhead costs $25,000 $35,000

a. Assume a traditional costing system applies the $60,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model?

b. Number of setups and number of components are identified as activity-cost drivers for overhead costs. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the standard model?

2.Classify each of the following costs as unit-level (U), batch-level (B), product-level (P), or facility-level (F) costs and identify an appropriate example of a possible cost driver for each item: (1) Parts administration (2) Production scheduling (3) Materials handling (4) Machine operations (5) Personnel administration and training (6) Plant security (7) Machine setups (8) Engineering changes (9) Product design (10) Rent for factory plant

3. Bobs Accents Company manufactures and sells three styles of doorknobs: brass, chrome, and white. Production takes 25, 25, and 10 machine hours to manufacture 1,000-unit batches of brass, chrome, and white doorknobs, respectively. The following additional data apply:

BRASS CHROME WHITE

Projected sales in number of units 30,000 50,000 40,000

PER UNIT data:

Selling price $ 50 $ 30$ 40

Direct materials $ 8 $ 4 $ 8

Direct labor$ 15 $ 3 $ 9

Support cost based on direct labor hours

(traditional cost system) $ 12 $ 3 $ 9

Hours per 1000-unit batch:

Direct labor hours 40 10 30

Machine hours 25 25 10

Setup hours 1.0 0.5 1.0

Inspection hours30 20 20

Total support costs and activity levels for the year are estimated as follows:

Activity Support costs Activity levels

Direct labor hours 2,900 hours

Machine hours 2,400 hours

Setups $465,500 95 setup hours

Inspections $405,000 2,700 inspection hours

$870,500

a.Using the traditional cost system, determine the operating profit per unit for each style of doorknob.

b.Determine the activity cost driver rates for setup support costs and inspection support costs.

c.Using the ABC system, for each style of doorknob:

1. compute the estimated support costs per unit; and

2. compute the estimated operating profit per unit.

d. Explain the differences between the profits obtained from the traditional cost system and the ABC system. Which system provides a better estimate of profitability? Why?

4.At Richs Electronics, product lines are charged for help center support costs based on sales revenue. Last years summary of help center operations revealed the following:

Midline Products Specialty Products

Number of calls for information 1,000 4,000

Average call length for information 3 minutes 8 minutes

Number of calls for help 300 1,200

Average call length for help 7 minutes 15 minutes

Sales revenue $8,000,000 $5,000,000

Richs Electronics currently allocates call center support costs using a rate of 1% of sales revenue.

a.Compute the amount of call center support costs allocated to each product line under the current system.

b.Assume Rich decides to use the average call length for information to assign last years support costs. Does this allocation method seem more appropriate than percentage of sales? Why or why not?

c. Assume Rich decides to use the numbers of calls of both types to assign last years support costs of $130,000. Compute the amount of call center support costs assigned to each product line under this revised ABC system.

1. Mountain Brew Corporation manufactures two models of coffee makers: a standard and a deluxe model. The following activity and cost information has been compiled. Product Number of Setups Number of Total Components Direct Labor Hours Standard 20 10 375 Deluxe 30 15 225 Overhead costs $25,000 $35,000 a. Assume a traditional costing system applies the $60,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model? b. Number of setups and number of components are identified as activity-cost drivers for overhead costs. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the standard model? 2. Classify each of the following costs as unit-level (U), batch-level (B), product-level (P), or facility-level (F) costs and identify an appropriate example of a possible cost driver for each item: (1) Parts administration (2) Production scheduling (3) Materials handling (4) Machine operations (5) Personnel administration and training (6) Plant security (7) Machine setups (8) Engineering changes (9) Product design (10) Rent for factory plant 3. Bob's Accents Company manufactures and sells three styles of doorknobs: brass, chrome, and white. Production takes 25, 25, and 10 machine hours to manufacture 1,000-unit batches of brass, chrome, and white doorknobs, respectively. The following additional data apply: BRASS CHROME WHITE Projected sales in number of units 30,000 50,000 40,000 PER UNIT data: Selling price $ 50 $ 30 $ 40 Direct materials $ 8 $ 4 $ 8 Direct labor $ 15 $ 3 $ 9 Support cost based on direct labor hours (traditional cost system) $ 12 $ 3 $ 9 Hours per 1000-unit batch: Direct labor hours Machine hours Setup hours Inspection hours 40 25 1.0 30 10 25 0.5 20 30 10 1.0 20 Total support costs and activity levels for the year are estimated as follows: Activity Support costs Activity levels Direct labor hours 2,900 hours Machine hours 2,400 hours Setups $465,500 95 setup hours Inspections $405,000 2,700 inspection hours $870,500 a. Using the traditional cost system, determine the operating profit per unit for each style of doorknob. b. Determine the activity cost driver rates for setup support costs and inspection support costs. c. Using the ABC system, for each style of doorknob: 1. compute the estimated support costs per unit; and 2. compute the estimated operating profit per unit. d. Explain the differences between the profits obtained from the traditional cost system and the ABC system. Which system provides a better estimate of profitability? Why? 4. At Rich's Electronics, product lines are charged for help center support costs based on sales revenue. Last year's summary of help center operations revealed the following: Midline Products Products Number of calls for information Average call length for information Number of calls for help Average call length for help Sales revenue 1,000 3 minutes 300 7 minutes $8,000,000 Specialty 4,000 8 minutes 1,200 15 minutes $5,000,000 Rich's Electronics currently allocates call center support costs using a rate of 1% of sales revenue. a. Compute the amount of call center support costs allocated to each product line under the current system. b. Assume Rich decides to use the average call length for information to assign last year's support costs. Does this allocation method seem more appropriate than percentage of sales? Why or why not? c. Assume Rich decides to use the numbers of calls of both types to assign last year's support costs of $130,000. Compute the amount of call center support costs assigned to each product line under this revised ABC system