Ludwig, Ajax case study..xlsx - Overhead cost Allocated overhead Set-up Receiving Engineering Packing Sub Total Directly assignable overhead Machine

Ludwig, Ajax case study..xlsx - Overhead cost Allocated...

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Overhead cost Basic Product Information Allocated overhead Product Information Set-up 3,000.00 Receiving 300,000.00 Production Units Engineering 500,000.00 Machine Runs Packing 200,000.00 Shipment Units Sub Total 1,003,000.00 Shipments Directly assignable overhead Selling Price Machine Cost 700,000.00 Target Sub Total 700,000.00 Actual Total 1,703,000.00 Manufactoring Cost Raw material components count price per component Labor usage @$20 per hr. Setup Labor per run Run Labor per part Machine Usage @$70 per hr. Machine Cost per part
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A B C 10,000.00 15,000.00 5,000.00 1 3 10 10,000.00 15,000.00 5,000.00 1.00 5.00 20.00 162.61 134.09 81.31 162.61 125.96 105.70 A B C 5 6 10 4 5 1 10.00 10.00 11.00 0.50 0.33 0.25 0.25 0.33 0.50
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Ajax Manufacturing Company Traditional Approach A B C Raw matrial 20.00 30.00 10.00 Direct Labor 10.00 6.67 5.00 Overhead Set-up 3,000.00 Machine Cost (10,000 * $70/hr) 700,000.00 Receiving 300,000.00 Engineering 500,000.00 Packing 200,000.00 Total 1,703,000.00 Overhead 1,703,000.00 Direct Labor 225,000.00 Allocation Rate (Overhead/Direct Labor) 757% 75.69 50.46 37.84 Total cost per product 105.69 87.13 52.84 Profitabilty Data A B C Standard Cost 105.69 87.13 52.84 Target Selling Price 162.61 134.09 81.31 Planned Gross Margin 35%35%35%Actual Selling Price 162.61 125.96 105.70 Actual Gross Margin 35%31%50%
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Ajax Manufacturing Company Modern Approach A B C Raw matrial 20.00 30.00 10.00
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