Collins_Controls_Corporation_part_II_template_&_solution

Collins_Controls_Corporation_part_II_template_&_solution...

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Collins Controls Corporation - Part II Activity Activity Cost Pool Amounts Cost Driver Total Activity Rate Machine setups $9,000 # of setups 120 Engineering and design $210,000 engineering hours 7,000 Material handling $22,000 lb. of material 220,000 Quality control $92,000 # of inspections 800 Machinery-related costs $612,000 machine hours 45,000 Total $945,000 Cost Driver Valve A Appl. OH Valve B Appl. OH Total # of setups 20 100 120 engineering hours 1,000 6,000 7,000 lb. of material 170,000 50,000 220,000 # of inspections 150 650 800 machine hours 30,000 15,000 45,000 Annual Production (units) 30,000 5,000 per unit per unit
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Collins Controls Corporation - Part II Activity Activity Cost Pool Amounts Cost Driver Total Activity Rate Machine setups $9,000 # of setups 120 $75.00 Engineering and design $210,000 engineering hours 7,000 $30.00 Material handling $22,000 lb. of material 220,000 $0.10 Quality control $92,000 # of inspections 800 $115.00 Machinery-related costs $612,000 machine hours 45,000 $13.60 Total $945,000 Cost Driver Valve A Appl. OH Valve B Appl. OH
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Unformatted text preview: Total # of setups 20 $1,500.00 100 $7,500.00 120 engineering hours 1,000 $30,000.00 6,000 $180,000.00 7,000 lb. of material 170,000 $17,000.00 50,000 $5,000.00 220,000 # of inspections 150 $17,250.00 650 $74,750.00 800 machine hours 30,000 $408,000.00 15,000 $204,000.00 45,000 Annual Production (units) 30,000 $473,750.00 5,000 $471,250.00 15.791666667 per unit $94.25 per unit Prime Cost $200.00 per unit Prime Cost $200.00 per unit Total Cost $215.79 per unit Total Cost $294.25 per unit Comparison of Overhead Rates Valve A Valve B Total Single Plantwide P.O.R. Units 30,000 5,000 P.O.R / Unit $27.00 $27.00 Total Applied O.H. $810,000 + $135,000 = $945,000 Valve A Valve B Total Departmental Rates Units 30,000 5,000 P.O.R / Unit $23.00 $51.00 Total Applied O.H. $690,000 + $255,000 = $945,000 Valve A Valve B Total Activity-Based-Costing Rates Units 30,000 5,000 P.O.R / Unit $15.79 $94.25 Total Applied O.H. $473,700 + $471,250 = $944,950...
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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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Collins_Controls_Corporation_part_II_template_&_solution...

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