Receiving orders:

Receive each component

once per run $($a "just$-$in$.$

time" inventory policy$)$

Packing orders:

One packing order per

shipment

$1(4\%)$

$5(19\%),20(77\%)$

Engineering Worklosd:

Distribution of workload

in the engineering depari$-$

ment is based on subjective

assessment of long$-$run

trends in number of engi$-$

neering work orders for

each product

$25\%,35\%$

$405$

$[$The standard, smooth

The complex, special

running product!

problems product$|$

QUESTIONS

Using the information given in Exhibit $2,$ calculate transaction$-$based indi$-$

rect overhead cost $($receiving$,$ engineering, and packing$)$ per unit for each of

the three products. Use this new information to recalculate overall cost per

unit for products $A,B,$ and $C.$

How can Ajax use the transaction costing data to improve programming

decisions. Specitically consider:

$-$Product pricing.

$-$Product emphasis.

$-$Most likely cause of the decline, over time, in control over overhead

spending as the product mix has shifted away from product B and to$-$

ward product $C.$using the information given in exhibit $2,$ calculate transaction$-$based indirect overhead cost $($receiving$,$ engineering, and packing$)$ per unit for each of the three products. Use this new information to recalculate overall cost per unit for products A$,$ B$,$ and C$.$