Question: Simplifying the ABC System: DBC Electan Company produces two types of printers. The company uses ABC, and all activity drivers are duration drivers. Electan

Simplifying the ABC System: DBC Electan Company produces two types of printers. The company uses ABC, and all activity drivers are duration drivers. Electan

Simplifying the ABC System: DBC Electan Company produces two types of printers. The company uses ABC, and all activity drivers are duration drivers. Electan Company is considering using DBC and has gathered the following data to help with its decision. A. Activities with duration drivers: Activities Products Changeover Assembly Testing Rework Total Hours Printer A 1,000 12,000 8,000 8,000 25,000 Printer B Total hours 4,000 5,000 8,000 20,000 12,000 12,000 20,000 25,000 20,000 50,000 B. Activities with consumption ratios and costs: Activities Cost Products Changeover Assembly Testing Rework Assignment Printer A 0.20 0.60 0.40 0.80 $155,000 Printer B 0.80 0.40 0.60 0.20 $155,000 Activity costs $75,000 $120,000 $60,000 $55,000 $310,000 C. Products with cycle time and practical capacity:

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