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Homework 032008 - ACCY 202 Spring 2008 Exercises 7-30 31 32...

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ACCY 202 Spring 2008 Solutions to homework handed in 03/20/08 Exercises 7-30, 31, 32, 33 Exercise 7-30 Gladmark produces two types of cards Scented Regular Total Inspection Hours 40 160 200 Setup Hours 50 50 100 Machine Hours 200 600 800 Number of Moves 225 75 300 a Calculate consumption ratios Scented Regular Total Inspection Hours 20.0% 80.0% 100.0% Setup Hours 50.0% 50.0% 100.0% Machine Hours 25.0% 75.0% 100.0% Number of Moves 75.0% 25.0% 100.0% b Is there evidence of product diversity? Yes, Scented takes as much time in setup as regular, and three times as many moves, but is a quarter to a third of the usage in Inspection and Machine Probably a good idea to consider activity-based costing for more accurate product-line costs Exercise 7-31 Calculate activity rates for each product Same usage as problem 7-30. Activity data is as follows: Hours Cost per hour Inspecting 2,000 200 10.00 Setting up 2,500 100 25.00 Machining 4,000 800 5.00 Moving materials 900 300 3.00 a Calculate activity rates for each product Costs assigned to each activity Scented Regular Total Inspecting 400 1,600 2,000 Setting up 1,250 1,250 2,500 Machining 1,000 3,000 4,000
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