Bowman Specialists Inc. (BSI) manufactures specialized equipment for polishing optical lenses. There are two models-one (A-25)...
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Bowman Specialists Inc. (BSI) manufactures specialized equipment for polishing optical lenses. There are two models-one (A-25) principally used for fine eyewear and the other (A-10) for lenses used in binoculars, cameras, and similar equipment. The following table shows the manufacturing cost of each unit is calculated, using activity-based costing, for these manufacturing cost pools. Cost Pools Materials handling Manufacturing supervision Assembly Machine setup Inspection and testing Packaging Di: materials Number of parts Machine-hours Inspection time Packing time Setups A-10 BSI currently sells the A-10 model for $5,850 and the A-25 model for $1,975. Manufacturing costs and activity usage for the two products follow: $148. 123 6.60 1.20 Allocation Base Number of parts Hours of machine time Number of parts Each setup 42 Logged hours Logged hours A-25 $59.44 94 4.40 0.70 0.44 21 Costing Rate $ 3.00 per part $22.80 per hour $ 4.95 per part $46.60 per setup $35.00 per hour $25.00 per hour Required: 1. Calculate the product cost and product margin for each product. lower prices $2.375 Bowman Specialists Inc. (BSI) manufactures specialized equipment for polishing optical lenses. There are two models-one (A-25) principally used for fine eyewear and the other (A-10) for lenses used in binoculars, cameras, and similar equipment. The following table shows the manufacturing cost of each unit is calculated, using activity-based costing, for these manufacturing cost pools. Cost Pools Materials handling Manufacturing supervision Assembly Machine setup Inspection and testing Packaging Di: materials Number of parts Machine-hours Inspection time Packing time Setups A-10 BSI currently sells the A-10 model for $5,850 and the A-25 model for $1,975. Manufacturing costs and activity usage for the two products follow: $148. 123 6.60 1.20 Allocation Base Number of parts Hours of machine time Number of parts Each setup 42 Logged hours Logged hours A-25 $59.44 94 4.40 0.70 0.44 21 Costing Rate $ 3.00 per part $22.80 per hour $ 4.95 per part $46.60 per setup $35.00 per hour $25.00 per hour Required: 1. Calculate the product cost and product margin for each product. lower prices $2.375
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Calculate the product cost for each product A10 Materials handling cost Number of parts Costing Rate ... View the full answer
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
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