FanGear, Inc. produces metal products for universities and colleges, including items such as trailer hitch covers...

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FanGear, Inc. produces metal products for universities and colleges, including items such as trailer hitch covers and license plate holders with the institutions' logos and mascot likenesses, for sale by the institutions to their alumni and sports fans. FanGear produces these products in batches and uses a job costing system for determining the costs for completing each job. Each new batch requires a unique design, reconfiguring of dies and machinery to produce the product, and cleaning and maintenance of the machinery following the production run in preparation for the next batch. FanGear's CFO wants to implement an activity-based costing system for allocating overhead costs to each job. The accounting department staff have gathered the following activity cost pools and per-activity rates for the latest period: Cost per Support Activity Product design Driver Driver Unit Change orders Setup hours Machine maintenance Machine hours $200 Batch setup $100 $80 For the latest period, FanGear produced products for three new major university customers. Change Setup Machine Customer Orders Hours Hours Southern Utah 10 4 32 Utah Valley 8 48 Utah State 4 40 Assuming that the production run for each of the three universities results in gross profits of $10,000, calculate the profitability from each builder after taking into account the support activity required for each university customer. Customer Net profit Southern Utah s Utah Valley Utah State FanGear, Inc. produces metal products for universities and colleges, including items such as trailer hitch covers and license plate holders with the institutions' logos and mascot likenesses, for sale by the institutions to their alumni and sports fans. FanGear produces these products in batches and uses a job costing system for determining the costs for completing each job. Each new batch requires a unique design, reconfiguring of dies and machinery to produce the product, and cleaning and maintenance of the machinery following the production run in preparation for the next batch. FanGear's CFO wants to implement an activity-based costing system for allocating overhead costs to each job. The accounting department staff have gathered the following activity cost pools and per-activity rates for the latest period: Cost per Support Activity Product design Driver Driver Unit Change orders Setup hours Machine maintenance Machine hours $200 Batch setup $100 $80 For the latest period, FanGear produced products for three new major university customers. Change Setup Machine Customer Orders Hours Hours Southern Utah 10 4 32 Utah Valley 8 48 Utah State 4 40 Assuming that the production run for each of the three universities results in gross profits of $10,000, calculate the profitability from each builder after taking into account the support activity required for each university customer. Customer Net profit Southern Utah s Utah Valley Utah State

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Answer Customer Net Profit Southern Utah 322078 Utah Valley 379221 Utha State 298701 1000000 Working ... View the full answer