HW57_58sol

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

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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
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This note was uploaded on 07/09/2011 for the course ACG 2071 taught by Professor Tanner during the Spring '11 term at UNF.

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

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