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Unformatted text preview: 9-301EZ_SEAT, INCIncome statementErgostandardRevenue19500001840000Direct materials550000500000Direct labor400000200000Overhead CostsAdministration (@32.5% per DL hour)13000065000Production Setup(@ 3000 per production run)150000300000Quality control (@ 750 per inspection)150000150000Distribution (@80 per unit shipped)120000480000Operation profit450000145000Overhead:Administration0.33Production Setup3000Quality control750Distribution803EZ_SEAT, INCIncome statementErgostandardRevenue$1,950,000 $1,840,000 Direct materials550000500000Direct labor400000200000Overhead Costs Administration (@32.5% per DL hour)13000065000Production Setup(@75% per DL hour)300000150000Quality control (@.5% per DL hour)200000100000Distribution (@100% per DL hour)400000200000Operation profit$(30,000)$625,000 Overhead:Administration0.33Production Setup0.75Quality control0.5Distribution14I think that ABS provide more accurate results. If we take a look at the results from 2nd statwice more expensive then standard chairs, but if we compare the results with the 1st sta9-20...
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