Question: I just need help with this whole assignment. Please help me. 9-19 4 Search 19 < Search < S21Assignement1... To Do LTE run, set up

19 < Search < S21Assignement1... To Do LTE run, set up equipment,manage products, and run machines. The demand on these activities by different

I just need help with this whole assignment. Please help me.

flavors is illustrated in Exhibit 3. He began by identifying the resourcesthat were being consumed by the activities. These resources were grouped insix categories as shown in Exhibit 1. After interviewing the department heads

9-19 4 Search

19 < Search < S21Assignement1... To Do LTE run, set up equipment, manage products, and run machines. The demand on these activities by different flavors is illustrated in Exhibit 3. He began by identifying the resources that were being consumed by the activities. These resources were grouped in six categories as shown in Exhibit 1. After interviewing the department heads in charge of support staff wages and benefits and insurance, he found out that their services are used by three activities: process production run (35%), set up (35%), and the remaining 30 % consumed to manage products. Next, the controller tackled the information system item and determines, after interview with the head of the information system department, that process production runs accounts for 40 % of their services while 60 % are used to manage products. The results of his investigations about the usage of the equipment revealed that it was entirely used to run machines. Maintenance services were shared equally between the production run activity and run machine activity. Finally, utility was shared equally by the four activities. Questions l. Describe the issue the company is facing 2. Calculate the costs for the four favors using ABC, reproduce the income statement, and calculate the new profit margin for each flavor 3. Compare the assigned overhead cost of each flavor (per unit) under both methods. Analyze why has ABC changed the total cost assigned to each flavor? provide tangible examples from the case to support your analysis. Which flavors are mispriced? 4. What actions may management consider in addressing the problems the company is facing? 2 Exhibit Support staff wages Benefits and insurances Information Systems $30,000 $12,000 $10,000 $7,000 Equipment Dashboard 000 ooo Calendar Notifications 29 Inbox

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!