Option for Requirement 3 : should accept or should not accept

Williamson Fabricators completed two jobs in June. Williamson Fabricators recorded the following costs assigned to the jobs by the company's activity based costing system: (Click the icon to view the costs.) Job 622 required 3,000 parts, 58,000 lathe turns, and 1,400 machine hours. All 300 of the job's output units were tested. All units of Job 409 were tested. Requirements 1. How do you know that at least one of the costs recorded for the two jobs is inaccurate? 2. Disregard materials handling costs. How many parts were used for Job 409? How many lathe turns did Job 409 require? How many machine hours? How many units were produced in Job 409? 3. A nearby company has offered to test all product units for $15 each. On the basis of ABC data, should Williamson Fabricators accept or reject the offer? Give your reason. Requirement 2. Disregard materials handling costs. How many parts were used for Job 409? How many lathe turns did Job 409 require? How many machine hours? How many units were produced in Job 409? Begin by determining the allocation rate for each of the four activities. Identify the formula, then compute the rate for each activity. (Round your answers to the nearest cent.) Activity cost Data Table allocation rate Lathe work 1 / turn Milling 1 /mach. hour Allocated Cost Grinding / part Activity Allocation Base Job 409 Job 622 / unit Testing Materials handling ... Number of parts $ 500 $ 1,500 The second step is to use the cost allocation rate for each activity to determine the quantity of the allocation base Job 409 used. Lathe work Number of lathe turns 4,500 14,500 Quantity of the Milling Number of machine hours 4,000 28,000 allocation base Grinding Number of parts 300 1,500 Testing Number of output units 126 2,700 Choose from any list or enter any number in the input fields and then continue to the next question. The second step is to use the cost allocation rate for each activity to determine the quantity of the allocation base Job 409 used. Quantity of the allocation base turns Lathe work 1 = Milling Grinding hours parts 1 Testing units Requirement 3. A nearby company has offered to test all product units for $15 each. On the basis of ABC data, should Williamson Fabricators accept or reject the offer? Give your reason. Based on the ABC information, Williamson the company's offer to test units for $15 each. Williamson's cost of performing this activity is $ per unit. Choose from any list or enter any number in the input fields and then continue to the next