Final version of Excel Project 1

Final version of Excel Project 1 - Product Data Model A...

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Product Data Model A Model B Units produced & sold per year 40,000 400,000 Sales Revenue $ 1,600,000.00 $16,000,000.00 Prime Cost $ 120,000.00 $12,000,000.00 # of Direct Labor Hours 100,000 500,000 # of Machine hours 25,000 475,000 # of Set Ups 30 120 # of Inspection runs 400 1,600 # of packing orders 6,000 59,000 Manufacturing Overhead Costs: Machining $ 250,000.00 Setup costs $ 240,000.00 Inspection costs $ 100,000.00 Packing Costs $ 130,000.00 Total $ 720,000.00 Simple or Traditional Cost Allocation Model A Model B Plant-wide MOH Rate $ 1.20 $ 1.20 Allocated MOH $ 120,000.00 $ 600,000.00 Direct Materials & Direct Labor $ 120,000.00 $12,000,000.00 Allocated MOH $ 120,000.00 $ 600,000.00 Total Product Costs $ 240,000.00 $12,600,000.00 Product Cost (CGS) per unit $ 6.00 $ 31.50 Selling Price per unit $ 40.00 $ 40.00 CGS per unit $ 6.00 $ 31.50 Gross Profit per Unit $ 34.00 $ 8.50 Activity-Based Costing Model A Model B Activity Rates Machining $ 0.50 $ 12,500.00 $ 237,500.00 Setup costs $ 1,600.00 $ 48,000.00 $ 192,000.00 Inspection costs $ 50.00 $ 20,000.00 $ 80,000.00 Packing Costs $ 2.00 $ 12,000.00 $ 118,000.00 Allocated MOH $ 92,500.00 $ 627,500.00 Direct Materials & Direct Labor $ 120,000.00 $12,000,000.00 Allocated MOH $ 92,500.00 $ 627,500.00 Total Product Costs $ 212,500.00 $12,627,500.00 Product Cost (CGS) per unit $ 5.31 $ 31.57 Selling Price per unit $ 40.00 $ 40.00 CGS per unit $ 5.31 $ 31.57 Gross Profit per Unit $ 34.69 $ 8.43 Departmental MOH Rates: $ 0.48 $ 0.80
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Machine Hours Direct Labor Hours Model A 125,000 275,000 Model B 375,000 325,000 Model A Model B
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