5e sol11-05 - Grayson $1,200 x 20 24,000 Lambert $1,200 x...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Cost Management Hansen and Mowen Ex 11-5 Name: SOLUTION Enter the appropriate numbers in the shaded cells in columns D, F, K, and M. 1) Activity Cost / Units Activity Rate Inspection components $1,200,000 / 1,000 = $1,200 per inspected order Expediting work $960,000 / 100 = $9,600 per expedited order Reworking products $6,844,500 / 1,500 = $4,563 per rework hour Warranty work $21,600,000 / 4,000 = $5,400 per warranty hour Activity Grayson Lambert Purchase cost: Rate x Units Grayson $144 x 200,000 $28,800,000 Lambert $129 x 800,000 $103,200,000 Inspecting components:
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Grayson $1,200 x 20 24,000 Lambert $1,200 x 980 1,176,000 Expediting work: Grayson $9,600 x 10 96,000 Lambert $9,600 x 90 864,000 Reworking products: Grayson $4,563 x 90 410,670 Lambert $4,563 x 1,410 6,433,830 Warranty works: Grayson $5,400 x 200 1,080,000 Lambert $5,400 x 3,800 20,520,000 Total $30,410,670 $132,193,830 Divided by units supplied 200,000 800,000 Unit cost $152.05 $165.24 2) Activity Grayson Lambert Lost Sales: Rate x Units $1,125 x 200 $225,000 $1,125 x 3,800 $4,275,000...
View Full Document

This note was uploaded on 11/05/2009 for the course BUS ACC202 taught by Professor Achillies during the Spring '09 term at NC Wesleyan.

Ask a homework question - tutors are online