AutoTech Manufacturing Product Costs 2

AutoTech Manufacturing Product Costs 2 - Machine hours...

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Input Data Analysis Data Part 127 Part 234 Part 1: Tradational Costing Production 600,000 0 Per Unit Part 127 Part 234 Total Selling Price $25.51 $42.10 Gross Margin Prime Costs per unit $9.53 $8.26 Selling price/unit $25.51 $42.10 Number of production Runs 100 200 Prime cost/unit $9.53 $8.26 Receiving Orders 400 1000 Overhead/unit $10.69 #DIV/0! Machine Hours 125,000 60,000 Gross margin/ unit $5.29 #DIV/0! Direct Labor hours 250,000 22,500 Total Part 127 Part 234 Engineering hours 5,000 5,000 Total Gross Margin $3,175,155.96 #DIV/0! #DIV/0! Material moves 500 400 *Overhead is allocated using a plant-wide rate based on direct labor hours Part 2: Select best cost driver and find overhead rates Over head rate (per DL hr) $25.65 Cost Pool Cost Driver Overhead rate Part 127 Part 234 Overhead Cost Pools Setup Costs Number of Production Runs $800.00 $80,000.00 $160,000.00 Setup Costs $240,000 Material handing costs Number of Material moves $1,000.00 $500,000.00 $400,000.00 Material handing costs 900,000 Machine Costs
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Unformatted text preview: Machine hours $9.46 $1,182,432.43 $567,567.57 Machine Costs 1,750,000 Receiving Costs Number of Receiving orders $1,500.00 $600,000.00 $1,500,000.00 Receiving Costs 2,100,000 Engineering costs Number of Engineering Hours $150.00 $750,000.00 $750,000.00 Engineering costs 1,500,000 General Plant costs Production $0.83 $500,000.00 General Plant costs 500,000 Total: $3,112,432.43 $3,377,567.57 Total $6,990,000 Part 3: Computer overhead and gross margin using ABC $6,490,000.00 $6,990,000.00 Per Unit Part 127 Part 234 YES Overhead/unit $5.19 #DIV/0! Gross Margin Selling price/unit $25.51 $42.10 Prime Costs/unit $9.53 $8.26 Overhead/unit $5.19 #DIV/0! Gross margin/ unit $10.79 #DIV/0! Total Part 127 Part 234 General Plant costs Total Profit $6,475,567.57 #DIV/0! $500,000.00 #DIV/0! $5,975,567.57 $5,749,000.00 $226,567.57 Recommendation 1 Recommendation 2...
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This note was uploaded on 12/14/2011 for the course MGT 268 taught by Professor Paragkosalge during the Spring '08 term at Grand Valley State University.

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AutoTech Manufacturing Product Costs 2 - Machine hours...

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