Chapter 5 TDABC examples.xlsx - Chapter 5 5-24 a The...

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Chapter 5 5-24
b). Compute the overhead cost applied to each product.Hours of each activity each product usesHours of overhead resouActivities ConsumedProductCuttingAssemblyFinishingResourceCuttingSequence1.001.502.50IDL4.00Forward0.751.602.30PL5.60Revolution1.703.001.70Machine 10.80Machine 21.00Total resources used by each product: ProductsSequenceForwardRevolutionIndirect Labor27.15025.42032.640Producton Labor17.95016.53026.630Machine 14.9254.5605.650Machine 26.1505.7307.380TDABC OH costs per unitProductTotalSequence$3,047.66 Forward$2,831.06 Revolution$3,881.34 c) & d). How many production workers, indirect workers, MHs will be required? Workers must be hired fPlanned ProductUnitsIDLPLMH 1MH 2Sequence150 4,072.50 2,692.50 738.75 922.50 Forward110 2,796.20 1,818.30 501.60 630.30 Revolution180 5,875.20 4,793.40 1,017.00 1,328.40 Total Hours needed12,743.90 9,304.20 2,257.35 2,881.20 Capacity per worker1,694.00 1,633.50 11Worker needed86
always round upe). Total OH incurred vs. Total OH appliedTotal expected OHAnnual cost perResourcesQuantityResourcesTotalProductsUnitsIndirect Labor8$55,000 $440,000 Sequence150Production Labor6$80,000 $480,000 Forward110Machine 11$250,000 $250,000 Revolution180Machine 21$365,000 $365,000 Total AppliedTotal Incurred$1,535,000
Theoretical hoIDL breaksPL breaks815151515301530Practical hours76.75urces used per hour of each activityActivity resource useAssemblyFinishing5.106.204.402.300.751.201.101.40for the enire year (no partial hiring)MOHWestern Mechanical producForward, and Revolution) thmanufacturing industry. Theto produce these products: cIn turn, the three activities uindirect labor, prodution labIndirect labor workers are paThe indirect labor workers wworkday is 8 hours, but eachgiven a 15-minute break in tthe afternoon, and 30 minutThe production labor workerper year. The production woThe workday is 8 hours, but break in the morning, 15-mimin quality control training, Machine 1 has an anual costcapacity of 2,400 hours. Mac$365,000 and a practical cap
Actualappllied OHTotal applied OHOH/unitApplied OH$3,047.66 $457,149.01 $2,831.06 $311,417.08 $3,881.34 $698,640.74 $1,467,206.83
ces three prhat are usede company ucutting, assuse four ovebor, machineaid a salarywork 242 dah day, indirethe morningtes for lunchrs are paid orkers work each day, thin break in tand 30-mint of $250,00chine 2 haspacity of 2,9
Chapter 5 5-27

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