1a Wilkerson Company Quantitative Analysis Assignment

1a Wilkerson Company Quantitative Analysis Assignment -...

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Wilkerson Company Quantitative Analysis of Traditional vs. ABC Unit Product Costs 1. Calculate the product costs per unit for valves, pumps, and flow controllers using Activity Based Costing to allocate manufacturing overhead, including the following: a. Allocate manufacturing overhead to activities (i.e. calculate activity costs) (See Exhibit 1). This is the first allocation in the process. b. Determine total activity levels of cost drivers for each activity (See Exhibit 4). c. Calculate activity-based overhead rates (i.e. Activity Rates) d. Allocate manufacturing overhead to the valves, pumps, and flow controllers in total (Activity Rates times Total Activity for each product). This is the final allocation in the process. e. Calculate ABC based manufacturing overhead per unit for
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Unformatted text preview: valves, pumps, and flow controllers. f. Calculate total product costs per unit for valves, pumps, and flow controllers. 2. Compare the current total product costs per unit calculated using the plantwide P.O.R. (See Exhibit 2) to the total product costs per unit calculated in (1) above for valves, pumps, and flow controllers. 3. Calculate and compare the target selling price using a target gross margin % of 35% under the two overhead allocation methods for valves, pumps, and flow controllers (See Exhibit 2). 4. Calculate and compare the actual gross profit % using current pricing under both allocation methods for valves, pumps, and flow controllers (See Exhibit 2)....
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This note was uploaded on 10/20/2011 for the course ACC 222 taught by Professor Brewer during the Spring '08 term at Miami University.

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1a Wilkerson Company Quantitative Analysis Assignment -...

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