Images attached the two different costing models

Activity-Based Costing
Prices		$ 950	$ 1,200
						ABC
Activity	Costs	Alpha	Beta	Total	Cost driver	Rates
Soldering	926,000	1,185,000	384,000	1,569,000	solder points	$ 0.5902
Shipments	865,000	16,500	3,840	20,340	shipments	$ 42.5270
Quality control	1,245,000	55,000	21,200	76,200	inspections	$ 16.3386
Purchasing	951,000	81,000	109,900	190,900	orders	$ 4.9817
Machine power	58,000	176,000	16,000	192,000	machine hrs	$ 0.3021
Machine setups	755,000	16,400	13,900	30,300	setups	$ 24.9175

1)What would you tell Susan Jones and Dan Smothers about the ABC analysis and what implications need to be planned to discontinue the Alpha model?

Arial EB Copy - 10 - A A Wrap Text General 2. AutoSum . te A Format Painter BIU - BB - D - A- = $5 Merge & Center % " Conditional Format as Cell Fill - Insert Delete Format Sort & Clipboard Font Formatting . Table . Styles & Clear Alignment Filter Number Styles Cells Editing 31 A B C D E F G H K Activity Based Costing M Traditional Costing Direct costs: Alpha Beta DM Alpha 208 $ Beta 584 DM 208 $ 584 DL 18 $ 42 DL 18 $ 42 Machine 144 |$ 72 Machine 144 $ 72 Total direct cost per unit 370 $ 698 Total direct cost per unit 370 $ 698 Units 22,000 4,000 MOA 200 $ 100 Total direct costs 8, 140,000 $ 2,792,000 Total Cost per unit 570 $ 798 Indirect costs: Units 22,000 4.000 Soldering 699,369 $ 226,631 Total direct costs $ 8, 140,000 $ 2,792,000 Shipments 701,696 $ 163,304 Indirect Costs $ 4,800,000 Quality control 898,622 $ 346,378 s per unit Purchasing 403,515 $ 547,485 Total hrs 176,000 16,000 192,000 Machine power 53, 167 $ 4,833 MO Cost per hour $ 25.0000 Machine setups 408,647 $ 346,353 MO Cost per unit 200.00 $ 100.00 Total indirect costs 3, 165,016 $ 1,634,984 $ 4,800,000 Total Cost per unit 570.00 $ 798.00 Total costs 11,305,016 $ 4,426,984 $ 15,732,000 Cost per unit 513.86 $ 1,106.75 Alpha Beta Total Alpha Beta Total 1 Revenues 20,900,000 $ 4,800,000 $ 25,700,000 Revenues 20,900,000 $ 4,800,000 $ 25,700,000 CGS 11,305,016 $ 4,426,984 $ 15,732,000 CGS 12,540,000 $ 3, 192,000 $ 15,732,000 9,594, 984 $ 373,016 $ 9,968,000 Gross margin 8,360,000 $ 1,608,000 $ 9,968,000 Gross margin Selling and admin expenses 5,830,000 '$ 978,000 $ 6,808,000 36 Selling and admin expenses 5,830,000 $ 978,000 $ 6,808,000 37 Operating Income 3,764,984 $ (604,984) $ 3, 160,000 Operating Income 2,530,000 $ 630,000 $ 3, 160,000 Net income per unit 115.00 $ 157.50 38 Net income per unit 171.14 $ (151.25) 45.9% 7.8% 38.8% Gross margin % 40.0% 33.5% 38.8% 39 Gross margin % Preface CVP RegAnal CapBud MBud VC ABC VA + 4 Select destination and press ENTER or choose Paste O N P 3 WE Type here to search Home