Exercise 6 - Manufacturing Company makes 3 products: A, B, and C. Shown below are the...

Transcribed Image Text:

Exercise 6 - Manufacturing Company makes 3 products: A, B, and C. Shown below are the estimated costs and estimated production data for next year. Cost Pools Cost Driver Customers Customer Service Design Modifications Storage Ordering & Receiving Packaging Supervision Total Estimated overhear Customers Modifications Square feet used Number of orders Number of units Number of employees Estimates By Produc Sales Lirect materials costs Lirect labor costs g) Customer Service h) Design i Storage i) Ordering & Receiving k) Packaging I) Supervision m] Total Overhead Assigned Overhead $120 000 $80 000 $40 000 $20 000 $60 000 $40.000 $360 000 Calculate the overhead assigned Prod A Prod A 60 15 n] Total Cost (DM+DL+MO o) Net Profit 1000 60 6 000 3 Calculate ABC rates for each cost pool: a) Customer Service b) Design c) Storage d) Ordering & Receiving e) Packaging f) Supervision Prod A $800 UUU $320 000 $200 000 q) Total Overhead Assigned r] Total Cost s] Net Profit Square feet used Number of orders Number of units Number of employees Prod B 100 25 600 80 4 UUU 1 Prod B $760 UUU $200 000 $240 UUU per customer per modificaton per sq. ft. per order per unit per employee Prod C 4U 1U 4UU 20 p) Calculate single plant-wide overhead rate: (assume the overhead allocation base is direct labor) 2 UUU 1 Calculate total cost & net profit using ABC method: Prod A Prod B Prod C Prod L $660 000 $160 000 $360 000 using ABC method: Prod B Prod C Calculate the following using the single plant-wide rate: Prod A Prod B Prod C Total 200 50 2 UUU 16:0 12 UUU 5 Lotal $2 220 000 $680 000 $800 000 per DL $ Exercise 6 - Manufacturing Company makes 3 products: A, B, and C. Shown below are the estimated costs and estimated production data for next year. Cost Pools Cost Driver Customers Customer Service Design Modifications Storage Ordering & Receiving Packaging Supervision Total Estimated overhear Customers Modifications Square feet used Number of orders Number of units Number of employees Estimates By Produc Sales Lirect materials costs Lirect labor costs g) Customer Service h) Design i Storage i) Ordering & Receiving k) Packaging I) Supervision m] Total Overhead Assigned Overhead $120 000 $80 000 $40 000 $20 000 $60 000 $40.000 $360 000 Calculate the overhead assigned Prod A Prod A 60 15 n] Total Cost (DM+DL+MO o) Net Profit 1000 60 6 000 3 Calculate ABC rates for each cost pool: a) Customer Service b) Design c) Storage d) Ordering & Receiving e) Packaging f) Supervision Prod A $800 UUU $320 000 $200 000 q) Total Overhead Assigned r] Total Cost s] Net Profit Square feet used Number of orders Number of units Number of employees Prod B 100 25 600 80 4 UUU 1 Prod B $760 UUU $200 000 $240 UUU per customer per modificaton per sq. ft. per order per unit per employee Prod C 4U 1U 4UU 20 p) Calculate single plant-wide overhead rate: (assume the overhead allocation base is direct labor) 2 UUU 1 Calculate total cost & net profit using ABC method: Prod A Prod B Prod C Prod L $660 000 $160 000 $360 000 using ABC method: Prod B Prod C Calculate the following using the single plant-wide rate: Prod A Prod B Prod C Total 200 50 2 UUU 16:0 12 UUU 5 Lotal $2 220 000 $680 000 $800 000 per DL $

Answer rating: 100% (QA)

Working Prod A Prod B Prod C A calculated by you in p Single Plant Wide overhead rate per DL 045 045 ... View the full answer