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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This note was uploaded on 07/06/2009 for the course MGMT 303 taught by Professor Scott during the Spring '08 term at Agnes Scott College.

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

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