Question: This is the wilkerson study case. i would like a step by step of how to calculate overhead using the ABC method vs the current
Exhibiti Wilkeren Company. Operating Result (March 200 Sales Direct Laboexperee SLIS Machine related experie Setup label Receiving and production control 1.00 Ingineering 300.000 Total Manufacturing Overtured Packaging and shipping Groos Margin General Selling & Admin Expense Operating Income (petak) 56172 SA How Corden $10.00 2000 Exhibit2 Product Profitability Analysis (March 2000) Valves Pumpe Direct labor cost 51000 Direct material.com 20.00 Manufacturing overhead (2005) 20.00 2750 Standard unit.com $70.00 Targel selling price Swis SI Planned gross margin 355 Actual selling price SS600 Actual grees margin (1) 945.35 95 Exhibit Product Data Product lines Materiale per unit Valves compte 2082-54 206-12 5.com 30956 2e7-14 Flow Controllen 12 cm 4651-54 501-30 LOBE $22 40DL hours $10.00 Materials cost per unit Direct laber per unit Direct labor Sunit @ 525/DL hour (including employee benefits Machine hours per 536 40 DL.hu 530 SO DE $12.50 0.5 05 03 Exhibit Monthly Production and Operating Statistis (March 2010 Production units) Machine her Production Nasiber of the of mineering with Values 7,500 1.750 10 10 250 11.300 160 300 375 1. Calculate overhead using ABC methods vs. current one 2. What are the differences? 3. Which one would you recommend? 4. Should any of the lines be discountinued
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
