Ch5 Problem 5-54

Ch5 Problem 5-54 - 5-54 (50 MINUTES)1.Activity Cost...

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Unformatted text preview: 5-54 (50 MINUTES)1.Activity Cost PoolType of ActivityI:Machine-related costsUnit-levelII:Setup and inspectionBatch-levelIII:EngineeringProduct-sustaining-levelIV:Plant-related costsFacility-level2.Calculation of pool rates:I:Machine-related costs:hrs.machine18,000$1,800,000=$100 per machine hr.II.Setup and inspection:runs80$720,000=$9,000 per runIII.Engineering:orderschange200$360,000=$1,800 per change orderIV.Plant-related costs:m.sq.3,840$384,000=$100 per sq. m.5-54 (CONTINUED)3.Unit costs for odds and ends:I:Machine-related costs:Odds: $100 per machine hr.8 machine hr. per unit= $800 per unitEnds: $100 per machine hr.2 machine hr. per unit= $200 per unitII:Setup and inspection:Odds: $9,000 per run 25 units per run=$360 per unitEnds: $9,000 per run 125 units per run=$72 per unitIII:Engineering:Odds:units1,00075%orderschange200orderchangeper$1,800=units1,000$270,000=$270 per unitEnds:units5,00025%orderschange200orderchangeper$1,800=units5,000$90,000=$18 per unitIV.Plant-related costs:...
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Ch5 Problem 5-54 - 5-54 (50 MINUTES)1.Activity Cost...

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