File Home Insert Page Layout Formulas Data Review View Help X Cut A A General DI Copy Arial MT BIU -12 A 23 Wrap Text Merge & Center E E $ % 9 99com Paste Format Painter Clipboard Font Alignment Number G42 D EF Data Section 6 7 Overhead Item 8 Setup costs 9 Ordering costs 10 Machine costs 11 Power 12 Expected Cost $24,000 9,000 36,000 5,000 Cost Driver Number of setups Number of orders Machine hours Kilowatt hours Amount 60 900 36,000 100,000 Bubble $1,300 Burst $1,525 $900 500 $900 15 Direct materials 6. Direct labor Units completed 3 Number of setups Number of orders Machine hours Kilowatt hours 10 800 6 60 1,500 6 000 120 2000 5000 Answer Section $900 800 $900 500 10 120 2,000 5,000 60 1,500 6,000 15 Direct materials 16 Direct labor 17 Units completed 18 Number of setups 19 Number of orders 20 Machine hours 21 Kilowatt hours 22 23 Answer Section 24 25 26 Setup 27 Ordering 28 Machine Costs 29 Power Pool Rates $400.00 per setup $10.00 per order $1.00 per machine hour $0.05 per kilowatt hour 30 Product Costs Bubble $1,300 900 Burst $1,525 900 34 Direct materials 35 Direct labor 36 Overhead 37 Setups 38 Ordering 39 Machine costs 40 Power 41 Total cost 2,400 600 1,500 4,000 1,200 2,000 250 $9.875 300 $7.000 43 Unit cost $8.75 $19.75 44 45 Copy 3 Format Painter BIU-E- A EE Merge & Center $ % 91 8 conditional Format as Calculation Formatting Table Clipboard Number K L M 029 A B C D E F G H T I J 1 Bumblebees Mobiles is trying to reduce its unit cost. Management believes that the two easiest areas to save costs are 2 setups and power. Determine the new cost information for each of the following independent situations. Remember to 3 reset your data to the original information after answering each item. P L 5 a) What are the new unit costs of each product if annual setup costs are reduced by 25%? (Change cell B8 on ABC worksheet) 7 Bubble 8 Burst 9 10 b) What is the new unit cost of each product if the number of setup can be reduced by 50%? (Change cells B18 & C18 on ABC worksheet) 11 12 Bubble 13 Burst 14 15 C) What is the new unit cost of each product if annual power costs are reduced by 70%? (Change cell B11 on ABC worksheet.) 16 17 Bubble 18 Burst 19 20 d) Which one of the cost saving ideas would create the lowest cost for each product? Why