costacctg13_sm_ch05

1 applewood electronics should not emphasize the

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Unformatted text preview: 0 3. Basketballs Volleyballs Total Direct materials $209,750 $358,290 $ 568,040 Direct manufacturing labor 107,333 102,969 210,302 Setup ($205 × 300; 400) 61,500 82,000 143,500 Equipment and maintenance ($4.6766 × 11,000; 12,500) 51,442 58,458 109,900 Lease rent, etc. ($18 × 3,360; 5,040) 60,480 90,720 151,200 $490,505 Budgeted total costs $692,437 $1,182,942 ÷ 66,000 ÷ Number of unit s ÷100,000 $ 7.43 Budgeted cost per unit $ 6.92 4. Currently, Nivag only utilizes 70% of its available capacit y. Managers should consider whether the excess capacit y is sufficient to produce footballs. Other issues to consider include demand for the proposed product, the compet it ion, capital invest ment needed to start and support this product line, and the availabilit y of skilled and unskilled labor needed to manufacture footballs. 5-42 5­38 (40-50 min.) Activity­based job costing, unit­cost comparisons. An overview of the product­costing system is: INDI RECT COST POOL } Materials Handling Lathe Work Milling Grinding Testing COST ALLOCAT ION BASE } } } Number of Parts Number of Turns Number of Machine­Hours Number of Parts Number of Units Tested...
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This note was uploaded on 10/11/2010 for the course ACCT 321 taught by Professor Cole during the Spring '10 term at University of Miami.

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