Cost Analysis - 9-19

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Problem 17-2A Part 2 2. Comqute the actirity or,erhead rates using ABc. Form cost pool

to 2 {ecimal

place* Omit t}re "$" dgn in your response.}

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Prob/em 17-ZA Part 2 l

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Problem NTrZe Part 3 i

Number of units Machine hours Engineering hours Batches

)

Direct lahor hours: l l ' -.. "

Jab 3175 120 units 3OO MH 32 eng hours 15 batches

470 DLH

Jab 4286 1,500 units 3,000 MH

34 eng. hours 45 batches

4,230 DLH

tUse the rates ealculated in Fart

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3. Deterlrline overhead costs to assign to the following jobs using I e anp] then round ysur intermediate carcurations and you numbbr. Omit the "S" sign in your reryense.)

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r Jap-"3]75 Job 4286

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Prab lem 17-2A Part 3 'rg.

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Problem t 7-2A Fart 4 4. What ip the owrhead cost per unit for Job 3175? What is

the to{al job csst in Part 3 and then rsund ysur final sign ir{ your respsns.}

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Problem 17-ZA Part 4

3117113

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'.MarketpT9"...s35perunit. ' Th.

"o*jqny's direct labor rate is $20 per direct labor hour (DLH).

Costs Drirer lndi rect n'ranuhcturi n g

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cost per unit for Job 4286? {U* [s 2 decimal place* Smit the '$"

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: # a3 De**ribe i?"r* four tYPes cf I

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on direct labor hours, ulrwt is the ,four casf per *LH ta 2 decimal ht and final ansvsers tc 2 decimal

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i- :udrrct,'r.', aclivitJfbased costing. I t f-Af l*i:',i$fy *nd assess

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3117113 Assignnent PrintVier Engineeringsupport $26,000 Engineeringmodifications Electricity 27,000 Machine hours Setup costs 42,000 Batches

Nonmanuhcturing Gustomersenrice 73,000 Numberofcustomers

W*rksha:eil

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Required: 1.1 Compute the manufacturing cost per unit using the plantwide owrhead pate based on dircct labor

hours. {Round your intermediate calculations and final ansrrrers to 2 decimal places Omit the "$" sign in your response,)

Product A Prc,Cuct B Total manufacturing cost per unit $,

1.2 What is the gross profit per unit? {Round your intermediate ca lculations and final ansicers to 2 decimal placea Omit the "$" sign in your response.)

. Product A Prodp_ct B Gross profit per unit $.,

2.{ How much gross proft is generated by each customer of Product A and Product B using the plantwide or,eftead rate? {Round your interrnediate calculations and 'inal an$irers to 2 decimal placee Omit the "$" sign in your response.)

ProdlctA. ProductB Gross profit per customer $ $

2.2 Whal is the cost of provding customer senice to each customer'? {Round your ans.rer to 2 decimal places Omit the "$" sign in your reqonse,!

Customersenrice cost $ percustomer

3,1 Determine the manuractudng cost per unit of each product line ur:,ing ABC. {Round yDur intermediate calculations and final ans rsrs to 2 decimal places Omit th,: "$" sign in your response.)

Product A Product B. Total manufacturing cost perunit $. .. $

3.2 What is the grcss profit per unit? {Round your intermediate ca iculations and final ansrrers to 2 decirnal Flaces. Omit the "$" sign in yor.rr response.)

Product A Product B Gross proft per unit $ : $

4,1 How much gross profit is generated by each customer of Prrlduct A and Product B using ABC? (Round your intermediate calculalions and final ansi,vers to 2 decimal places. Omit the "$" sign in your response,)

Product A Product B Gross profit per customer $: . $

4.2 ls the gross proft per customer adequate firr Product A?

:-'yes ;.:No

4.3 ls the gross profit per customer adequate for Product B?

:.. ye,s

r_ .No

5. Which method of product costing gir,es better information to manal;ers of this company?

'" : Acti\iity based costing ,..f Process costing i..: Joborder costing

8111

3[17113

Actidty Pattem alignment Cutting Moving product

Sewing lnspecting Folding

Design Profiding space Materials

handling

lnnpnt Print Vieru

rafe l.O. A1, A2, PI, P2, F3

tents are cut to spcifications in es, costs, and drivers associated

ities follow.

Quantity 600

13,200 3,600

6,080 450

32JOA

400 8,44O

890,000

$ 630,910

$ 760,000 50,400

311,5W

$1 ,121 ,900

Pup Tent 21,4A0 units

1,244 mo\es 150 batches 180 inspections

7,200 MH 3,800 DLH

100 modification orders 4,200 square feet

4g0,ryq sguare yards

department F,. with these tl,,/b

Problem 1*- [Thetutlownb

Tent Master

Support

Additional p

Units prod Mor,es Batches Number of

$ecticn BrC

Overhead cost $ 69,000

58,080 151,200

Driter Batches Machine hours Moues

$ 27&,29A

$ 522,888 u,204 73,930

Direct labor lnspections Units

Modification Square feet

Sguare yards

P

10,700 2,48A

45A

6,000 2,280

300 4,200 s

4C01000

es 270 i pections

feet yards

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compute the olerfiead cost that is termediate caleulations and final

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Prob iem f 7t5A pfanfwr'de oted

Prablem tl Require$: 1. Using i

assigd, an$trq

Pup f PopF

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917113

16.

Problen f frSA Part 2

17.

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Total cost per unit Puptent $, /unit Pop-r.rptent 5i"

-""' " - -=-'l unit

nrnent Print Mevu

unit for the two goducts if the direct tent. {Hound your intermediate

i'$" sign in your response.)

imal places, Omit the "$" sign in

labor and direct materials cost is *te catrcslations *nd final an$lsers

ll Problem 17-5A Part 3

3,1 AssrJnle the market price of the pup tent is $90 and the

y$irr intermediate *aleulatisns and final ansfirer$ ts 2 your response.)

ffipuprent ffi $. _ Pofpptent ffi $'--,

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3.2 What will be the management decide about the product Pup-t

,"*i Eliiminate puptent '.-; Retain puptent

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et price of the pofup tent is $160, detefryine the gross profit / loss per unit for each tent, {lnput al amsunts as positive values" R$und

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3117113 Ass g nnent Print View

Problem 1 ,r-54 Paft 5 5. Assurne if the market price is $90 per pup tent and $160 per pc c-up tent, determine the gross profit /

loss per unitforeach tent. {Round your intennetliate calcul&liril}s and tinal ansvBerst$ 2 de*in'raN pia*es Ornit the "$'* sign in your respcnse.|

pup ternt lF.fit -----Fl $ Pop.up tent lFrofit-----Tl $

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