Question: Using the financial and operational data in Exhibits 3 & 4 above, compute, for the 18 SQFT solar panel, the following:1. The total overhead cost
Using the financial and operational data in Exhibits 3 & 4 above, compute, for the 18 SQFT solar panel, the following:1. The total overhead cost per unit using the traditional machine hours method,2. The Purchasing overhead cost per unit using ABC3. The Machine Setup overhead cost per unit using ABC4. The Machine Maintenance overhead cost per unit using ABC5. The Inspection overhead cost per unit using ABC.Enter numbers using up to 3 decimal points. No need to use $ signs18 SOFT solar panelTotal Overhead Cost per unit (using machinehoursPurchasing overhead cost per unit using ABCMachine setup overhead cost per unit usingABCMachine Maintenance overhead cost per unit using ABCInspection overhead cost per unit using ABC

F - X U @ B Q E D Synergy Solar makes 5 different sized solar panels: 8 SQFT, 10 SQFT. 12 SQFT. 15 SQF, & 18 SQFT. To allocate overhead to their 5 different sized products, Synergy uses the traditional allocation methodology of applying overhead based on machine hours. Exhibit 3 8 SQFT 10 SQFT 12 SQFT 15 SQFT 18 SQFT # Units Mfg & 80,000 50,000 30,000 20,000 Sold 10.000 Material Cost per $8.00 $10.00 $12.00 $15.00 $18.00 unit Labor Cost per $60.00 $75.00 $90.00 unit $105.00 $120.00 The Company now believes that Activity Based Costing may yield a more accurate assignment of overhead costs to products. It has compiled the following ABC information: (All $ and operational data are on an annual basis). Exhibit 4: Overhead $ Annual Driver 8 SQFT 10 SQFT 12 SQFT 15 SQFT 18 SQFT Total Dep't # Purchasing $360,000 1,400 800 400 requisitions 250 150 3,000 Machine Setup $900,000 # setups 200 200 300 250 250 1,200 Mach # machine $4,752,000 Maintenance 120,000 80,000 hrs. 60,000 60,000 40,000 360,000 # Inspection $108,000 14,000 5,000 9,000 inspections 6,000 2,000 36,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
