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acct6-19b

# acct6-19b - Cost/Unit \$19.50 \$2.60 \$10 \$25 \$55.50 Cost per...

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Acct245 Bronstein 10am Problem 6-19B a. Overhead Cost Allocation Under ABC Mat. Hndlng Mach. Set. Product Facility Total Cost pool \$366,000 \$180,000 \$28,000 \$360,000 \$934,000 Cost drivers # of parts # Setups # units test Mach. Hrs. 1,220,000 90 1,400 7,200 Rate \$.30 \$2,000 \$20 \$50 Allocation for Model W Mat. Hndlng Mach. Set Product Facility Total Weight 700,000 50 1,000 3,200 x Rate \$.30 \$2,000 \$20 \$50 Allocation \$210,000 \$100,000 \$20,000 \$160,000 \$490,000 ÷ # of units 20,000 20,000 20,000 20,000 20,000 Cost/Unit \$10.50 \$5 \$1 \$8 \$24.50 Allocation for Model M Mat. Hndlng Mach. Set Product Facility Total Weight 520,000 40 400 4,000 x Rate \$.30 \$2,000 \$20 \$50 Allocation \$156,000 \$80,000 \$8,000 \$200,000 \$444,000 ÷ # of units 8,000 8,000 8,000 8,000 8,000

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Unformatted text preview: Cost/Unit \$19.50 \$2.60 \$10 \$25 \$55.50 Cost per Unit Computations: Type of Product Direct Materials + Direct Labor + Allocated Overhead = Total Model W \$8.00 + \$8 + \$24.50 = \$40.50 Model M 20.00 + 24 + 55.50 = 99.50 Acct245 Bronstein 10am Problem 6-19A (continued) b. Model w Model m Total Price per unit \$36.00 \$110.00 Cost per unit (40.50) (99.50) Profit (Loss) / Unit (4.50) 10.50 x # of units x 20,000 x 8,000 Total profit (loss) \$(90,000) 84000 \$(6,000) c. Model w Model m Target price \$36.00 \$110.00 Less: Profit margin (9.00) (27.50) Target cost / Unit \$27.00 \$82.50...
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acct6-19b - Cost/Unit \$19.50 \$2.60 \$10 \$25 \$55.50 Cost per...

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