case study
andra37
Unit2CaseStudy-C03_01-updated.xlsxAccounting Data
| Shelby Shelving Data for Current Production Schedule | ||||||||
| Machine requirements (hours per unit) | Given monthly overhead cost data | |||||||
| Model S | Model LX | Available | Fixed | Variable S | Variable LX | |||
| Stamping | 0.3 | 0.3 | 800 | Stamping | $125,000 | $80
Chris Albright: Overhead per unit of model S |
$90
Chris Albright: Overhead per unit of model LX |
|
| Forming | 0.25 | 0.5 | 800 | Forming | $95,000 | $120 | $170 | |
| Model S Assembly | $80,000 | $165 | $0 | |||||
| Model S | Model LX | Model LX Assembly | $85,000 | $0 | $185 | |||
| Current monthly production | 400.0 | 1400.0 | ||||||
| Standard costs of the shelves -- based on the current production levels | ||||||||
| Hours spent in departments | Model S | Model LX | ||||||
| Model S | Model LX | Totals | Direct materials | $1,000 | $1,200 | |||
| Stamping | 120.0 | 420.0 | 540.0 | Direct labor: | ||||
| Forming | 100.0 | 700.0 | 800.0 | Stamping | $35 | $35 | ||
| Forming | $60 | $90 | ||||||
| Percentages of time spent in departments | Assembly | $80 | $85 | |||||
| Model S | Model LX | Total direct labor | $175 | $210 | ||||
| Stamping | 22.2% | 77.8% | Overhead allocation | |||||
| Forming | 12.5% | 87.5% | Stamping | $149 | $159 | |||
| Forming | $150 | $229 | ||||||
| Unit selling price | $1,800 | $2,100 | Assembly | $365 | $246 | |||
| Total overhead | $664 | $635 | ||||||
| Assembly capacity | 1900.0 | 1400.0 | Total cost | $1,839 | $2,045 | |||
