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OR350 11-6 - 1 s=.8 n=log(s/log(2 n=log.8/log(2...

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1) s=.8 n=log(s)/log(2) n=log(.8)/log(2) n= -.3219280949 k=400 hrs z 10 =k(10) n z 10 =400(10) -.3219280949 z 10 =400*.476… z 10 =190.6039477 2) u z logu logz slope=n logk k 1 7815000 0 6.89292 9 - 0.07399242 6.89292 5 7814928 2 7424000 0.30103 6.87063 8 3 7205000 0.47712 1 6.85763 4 4 7053000 0.60206 6.84837 4 z5 6937556 z6 6844594 z7 6766968
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27) standard higrade total direct labor 160000 80000 240000 materials 125000 114000 239000 285000 194000 number of runs tot costs standard higrade total qualtity tests 300000 20 10 30.00 shipping orders processed 360000 12 18 30.00 total overhead 220000 100 50 150.00 880000 132 78 210.00 number of runs tot costs standard std% higrade hi% qualtity tests 300000 20 0.67 10.00 0.33 shipping orders processed 360000 12 0.40 18.00 0.60 total overhead 220000 100 0.67 50.00 0.33 880000 132 78.00 number of runs tot costs std% Std OH Cost hi% Hi-grade OH Cost qualtity tests 300000 0.67 200000.00 0.33 100000.00 shipping orders processed 360000 0.40 144000.00 0.60 216000.00 total overhead 220000 0.67 146666.67 0.33 73333.33 880000 490666.67 389333.33 a) Overhead for Standard = 490666.67 Overhead for Hi-Grade = 389333.33 Total Cost per Standard product (per unit)= (490666.67 + 285000)/320,000= $2.42 Total Cost per Hi-Grade product (per unit)= (389333.33 + 194000)/120,000= $4.86 b) OH Standard= 880,000*(160000/240000)= $586,666.67 OH Hi-Grade= 880,000*(80000/240000)= $293,333.33 Total Cost Stadard (per unit) = ($586,666.67+ 285000 )/320,000= $2.72 Total Cost Hi-Grade (per unit) = ($293,333.33+ 194000 )/120,000= $4.06
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c) selling price (std, hi)=(3.6, 5.8) Profit from standard: Using traditional costing=> (3.6-2.72)*320,000= $281,600 ABC Costing=> (3.6-2.42)*320,000= $377,600 Profit from Hi-Grade: Using traditional costing=> (5.8-4.06)*120,000= $208,800 ABC Costing=> (5.8-4.86)*120,000= $112,800 Expected Profit Traditional Method: $281,600 + $208,800= 490,400 Expected Profit ABC Method: $377,600 + $112,800= 490,400
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