Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided...

Transcribed Image Text:

Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided for Patterson Company for its most recent year of operations. Expected Consumption Activity 7. Inserting dies 8. Purchasing materials 1. Developing test programs 3. Testing products ABC assignments Total overhead cost Required: Driver Number of dies Number of purchase orders Engineering hours Test hours Quantity 2,400,000 1,900 10,000 17,500 3. What if the two activities were 1 and 37 Repeat Requirements 1 and 2. Form reduced system cost pools for activities 1 and 3. Wafer A 0.7 0.2 Ratios 0,25 0.6 $140,000 Wafer B 0.3 0.8 0.75 0.4 $140,000 $280,000 1. Form reduced system cost pools for activities 7 and 8. Do not round interim calculations. Round your final answers to the nearest dollar. Inserting dies cost pool Purchasing cost pool 2. Assign the costs of the reduced system cost pools to Wafer A and Wafer B. Do not round interim calculations. Round your final answers to the nearest dollar. Wafer A Wafer B 1. Developing test programs 3. Testing products ABC assignments Total overhead cost Engineering hours Test hours Wafer A Wafer B 10,000 17,500 0.25 0.6 $140,000 Required: 1. Form reduced system cost pools for activities 7 and 8. Do not round interim calculations. Round your final answers to the nearest dollar. Inserting dies cost pool Purchasing cost pool 2. Assign the costs of the reduced system cost pools to Wafer A and Wafer 8. Do not round interim calculations. Round your final answers to the nearest dollar. 3. What if the two activities were 1 and 3? Repeat Requirements 1 and 2. Form reduced system cost pools for activities 1 and 3. 0.75 0.4 $140,000 $280,000 Do not round interim calculations. Round your final answers to the nearest dollar. Developing test programs cost pool Testing products cost pool Assign the costs of the reduced system cost pools to Wafer A and Wafer B. Wafer A Wafer B Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided for Patterson Company for its most recent year of operations. Expected Consumption Activity 7. Inserting dies 8. Purchasing materials 1. Developing test programs 3. Testing products ABC assignments Total overhead cost Required: Driver Number of dies Number of purchase orders Engineering hours Test hours Quantity 2,400,000 1,900 10,000 17,500 3. What if the two activities were 1 and 37 Repeat Requirements 1 and 2. Form reduced system cost pools for activities 1 and 3. Wafer A 0.7 0.2 Ratios 0,25 0.6 $140,000 Wafer B 0.3 0.8 0.75 0.4 $140,000 $280,000 1. Form reduced system cost pools for activities 7 and 8. Do not round interim calculations. Round your final answers to the nearest dollar. Inserting dies cost pool Purchasing cost pool 2. Assign the costs of the reduced system cost pools to Wafer A and Wafer B. Do not round interim calculations. Round your final answers to the nearest dollar. Wafer A Wafer B 1. Developing test programs 3. Testing products ABC assignments Total overhead cost Engineering hours Test hours Wafer A Wafer B 10,000 17,500 0.25 0.6 $140,000 Required: 1. Form reduced system cost pools for activities 7 and 8. Do not round interim calculations. Round your final answers to the nearest dollar. Inserting dies cost pool Purchasing cost pool 2. Assign the costs of the reduced system cost pools to Wafer A and Wafer 8. Do not round interim calculations. Round your final answers to the nearest dollar. 3. What if the two activities were 1 and 3? Repeat Requirements 1 and 2. Form reduced system cost pools for activities 1 and 3. 0.75 0.4 $140,000 $280,000 Do not round interim calculations. Round your final answers to the nearest dollar. Developing test programs cost pool Testing products cost pool Assign the costs of the reduced system cost pools to Wafer A and Wafer B. Wafer A Wafer B

Answer rating: 100% (QA)

Answer 1 Form Reduced System Cost Pools for Activities 7 and 8 Inserting Dies Cost Pool Ratio for Wa... View the full answer