PART A: Using a traditional costing system determine the gross profit per unit of each facuet. BRASS CHROME WHITE PER UNIT Gross profit PART B: Determine the activity-cost-driver-rate for setup and inspection costs. Activity OH Cost Activity Levels Activity Rate Setups Inspection PART C: Using an ABC System, for each style of facuet determine: 1.) estimated overhead cost per unit and 2.) estimated gross profit per unit. BRASS CHROME WHITE Overhead cost - setup Activity Rate Activity Level Number of Batches Cost Per Unit Overhead cost - inspection Activity Rate Activity Level Number of Batches Cost Per Unit Overhead cost - setup Overhead cost - inspection Gross profit PART D: Explain the differences between the profits obtained from the traditional system and the ABC system. Which system provides a better estimate of profitability? Why? Prepare a Production Cost Worksheet (using the 5 steps). ABBOTT COMPANY PRODUCTION COST WORKSHEET Step #1 Step #2 Calculate EQUS Direct Materials Conversion Flow of Production Physical Units To Account For Accounted For Step #3 - Accumulation of Costs Costs Total Production Costs Direct Materials Conversion Total Costs to Account For Step #4 - Calculate Cost Per EQU Cost Per EQU Step #5 - Assignment of Costs Costs Accounted For PART A: Using a traditional costing system determine the gross profit per unit of each facuet. BRASS CHROME WHITE PER UNIT Gross profit PART B: Determine the activity-cost-driver-rate for setup and inspection costs. Activity OH Cost Activity Levels Activity Rate Setups Inspection PART C: Using an ABC System, for each style of facuet determine: 1.) estimated overhead cost per unit and 2.) estimated gross profit per unit. BRASS CHROME WHITE Overhead cost - setup Activity Rate Activity Level Number of Batches Cost Per Unit Overhead cost - inspection Activity Rate Activity Level Number of Batches Cost Per Unit Overhead cost - setup Overhead cost - inspection Gross profit PART D: Explain the differences between the profits obtained from the traditional system and the ABC system. Which system provides a better estimate of profitability? Why? Prepare a Production Cost Worksheet (using the 5 steps). ABBOTT COMPANY PRODUCTION COST WORKSHEET Step #1 Step #2 Calculate EQUS Direct Materials Conversion Flow of Production Physical Units To Account For Accounted For Step #3 - Accumulation of Costs Costs Total Production Costs Direct Materials Conversion Total Costs to Account For Step #4 - Calculate Cost Per EQU Cost Per EQU Step #5 - Assignment of Costs Costs Accounted For