Question: Data table Data table Additional data Each of Union Dairy's employees are available for 142 hours of work each month at a cost of $5,680




Data table Data table Additional data Each of Union Dairy's employees are available for 142 hours of work each month at a cost of $5,680 per employee per month. This results in a cost rate per employee of $40 per hour. Union Dairy has 7 employee and they perform both direct and indirect tasks. Union Dairy has two machines. The lease cost for each machine is $5,390 per month. The total available capacity per machine line is 154 hours per month. This results in a cost rate for machines of $35 per machine hour. Union had 5 hours of unused machine capacity. The following time-driven ABC analysis was prepared for the Union Dairy ice cream plant: Requirements (Click the icon to view the product profitability.) (a) Suppose indirect labor costs have increased by 25% from the original setting but all other information remains the same. Determine the total time-driven activity-based (Click the icon to view the indirect labor data.) costs assigned to each of the four products (flavors) after incorporating the 25% (Click the icon to view additional data.) increase in indirect labor costs and prepare an income statement similar to the one provided. (b) Suppose that in addition to the change in part a, the unit time for scheduling a production run decreased from three hours per run to two hours per run. Determine the new total time-driven activity-based costs assigned to each of the four products (flavors) and prepare an income statement which also shows the total cost of unused capacity. Requirement (a) Suppose indirect labor costs have increased by 25% from the original setting but all other information remains the same. Determine the total time-driven activity-based costs assigned to each of the four products (flavors) after incorporating the 25% increase in indirect labor costs and prepare an income statement similar to the one provided. (Round dollar amounts to the nearest cent and gross profit percentages to two decimal places, X.XX\%. Use parentheses or a minus sign for loss dollar amounts and loss percentages.) Data table Data table Additional data Each of Union Dairy's employees are available for 142 hours of work each month at a cost of $5,680 per employee per month. This results in a cost rate per employee of $40 per hour. Union Dairy has 7 employee and they perform both direct and indirect tasks. Union Dairy has two machines. The lease cost for each machine is $5,390 per month. The total available capacity per machine line is 154 hours per month. This results in a cost rate for machines of $35 per machine hour. Union had 5 hours of unused machine capacity. The following time-driven ABC analysis was prepared for the Union Dairy ice cream plant: Requirements (Click the icon to view the product profitability.) (a) Suppose indirect labor costs have increased by 25% from the original setting but all other information remains the same. Determine the total time-driven activity-based (Click the icon to view the indirect labor data.) costs assigned to each of the four products (flavors) after incorporating the 25% (Click the icon to view additional data.) increase in indirect labor costs and prepare an income statement similar to the one provided. (b) Suppose that in addition to the change in part a, the unit time for scheduling a production run decreased from three hours per run to two hours per run. Determine the new total time-driven activity-based costs assigned to each of the four products (flavors) and prepare an income statement which also shows the total cost of unused capacity. Requirement (a) Suppose indirect labor costs have increased by 25% from the original setting but all other information remains the same. Determine the total time-driven activity-based costs assigned to each of the four products (flavors) after incorporating the 25% increase in indirect labor costs and prepare an income statement similar to the one provided. (Round dollar amounts to the nearest cent and gross profit percentages to two decimal places, X.XX\%. Use parentheses or a minus sign for loss dollar amounts and loss percentages.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
