Deluxe 100.000 Standard 800.000 Quantity Produced Selling Price Unit Prime Cost Rp5.400.000 Rp4.500.000 Rp3.174.000 Rp2.896.500 Overhead...

Transcribed Image Text:

Deluxe 100.000 Standard 800.000 Quantity Produced Selling Price Unit Prime Cost Rp5.400.000 Rp4.500.000 Rp3.174.000 Rp2.896.500 Overhead Cost/ DLH Rp282.000 Rp351.750 Direct Labor Hours/ Unit 2 Overhead is applied using direct labor hours (DLH) Upon examining the data, the vice president of marketing was particularly impressed with the unit. The plant manager objected his strategy, arguing that the cost of the deluxe printer was understated. He argued that overhead costs could be assigned more accurately by using activity drivers that reflected each product's demand for overhead activities, He obtained the following projected information from the controller for the production output. The data bellow is given Pool Rate/ activity driver Pool Name Activity Level Activity Driver Activity Driver Deluxe Standard 200 Setups Batch Level NO of setups Machine hours Rp18.000.000 300 Rp1.200.000 100.000 300.000 Machining Unit Level Engineering Product Level Engineering hours Packing Hours Rp240.000 50.000 100.000 Rp120.000 100.000 400.000 Packing Providing Batch Level Facility Sustaining Level Space Machine hours Rp6.000 200.000 800.000 a. Using the projected data, based on the previosly pre-dertermined overhead rate (DLH), compute gross profit for each product b. Using the projected data, compute gross profit for each product using Activity based costing c. Evaluate the suggestion to the vice president of marketing based on your computation Deluxe 100.000 Standard 800.000 Quantity Produced Selling Price Unit Prime Cost Rp5.400.000 Rp4.500.000 Rp3.174.000 Rp2.896.500 Overhead Cost/ DLH Rp282.000 Rp351.750 Direct Labor Hours/ Unit 2 Overhead is applied using direct labor hours (DLH) Upon examining the data, the vice president of marketing was particularly impressed with the unit. The plant manager objected his strategy, arguing that the cost of the deluxe printer was understated. He argued that overhead costs could be assigned more accurately by using activity drivers that reflected each product's demand for overhead activities, He obtained the following projected information from the controller for the production output. The data bellow is given Pool Rate/ activity driver Pool Name Activity Level Activity Driver Activity Driver Deluxe Standard 200 Setups Batch Level NO of setups Machine hours Rp18.000.000 300 Rp1.200.000 100.000 300.000 Machining Unit Level Engineering Product Level Engineering hours Packing Hours Rp240.000 50.000 100.000 Rp120.000 100.000 400.000 Packing Providing Batch Level Facility Sustaining Level Space Machine hours Rp6.000 200.000 800.000 a. Using the projected data, based on the previosly pre-dertermined overhead rate (DLH), compute gross profit for each product b. Using the projected data, compute gross profit for each product using Activity based costing c. Evaluate the suggestion to the vice president of marketing based on your computation

Answer rating: 100% (QA)

Answer 1 Deluxe Standard Selling Price 5400000 4500000 Less Cost Prime Cost 3174000 289... View the full answer