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HW57_58sol

HW57_58sol - Problem 57 A B C List which items are cost...

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Problem 57 A List which items are cost objects: Bert and Ernie B List which items are cost pools. Machine setups, maintenance, storeroom C List which items are cost drivers: # of setups, # of square feet, # of crates, DL hours D. Costs of Ernie using traditional costing. Estimated MOH = \$72,000 + \$160,000 + \$80,000 Estimated DL\$ 10,400 = \$30.00 Direct materials (2*\$5) \$10 Direct labor (\$20*3 hrs) 60 MOH (\$30*\$3 hrs) 90 C Cost of each Ernie \$160 A E. Costs of Ernie using ABC Machine setups A..Rates Total Per unit \$72,000/192 = \$375 per setup \$375* 48 setups = \$18,000 \$7.50 Maintenance \$160,000/4,800 = \$33.33 per SF \$33.33333*1,440SF.= 48,000 20.00 Storeroom \$80,000/5,000 = \$16 per crate \$16*3,000 crates = 48,000 20.00 Direct materials (actual): 10.00 Direct labor (actual): 60.00 Total cost \$117.50 D Over costing ABC is more accurate so if the company uses traditional as assumes the cost is \$160, when in fact accurate cost is \$117.50, it is using an overcosted amount. per DLH B

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\$7.50 + \$20,00 + \$20.00 = \$47.50 t a more B. OH allocated per unit" C. using ABC
Problem 58 A List which items are cost objects:

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HW57_58sol - Problem 57 A B C List which items are cost...

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