20hour mode i 2820 per hr 1 hr per unit 2820 per unit

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Unformatted text preview: 3,000 = $28.20/hour Mode I: $28.20 per hr. 1 hr. per unit $28.20 per unit Mode II: $28.20 per hr. 1.25 hr. per unit $35.25 per unit Mode III: $28.20 per hr. 2 hr. per unit $56.40 per unit 22 STAGE ONE—Setup Calculation of total setup cost Activity cost pool Wang 2013 Total budgeted setup cost $20 per hour 10 hr. per setup $200 cost per setup 15 production runs $ 3,000 Total Setup Cost Pool Total budgeted cost = $3,000 23 STAGE TWO—Setup Calculate the pool rate Cost Assignment Wang 2013 Budgeted Setup Costs = $3,000 Planned Production Runs 15 runs = $200 per run Mode I: (1 Run) $200 per run 10,000 units per run = $.02 per unit Mode II: (4 Runs) $200 per run 5,000 units per run = $.04 per unit Mode III: (10 Runs) $200 per run 400 units per run = $.50 per unit 24 STAGE ONE—Engineering Various overhead costs related to engineering Activity cost pool Wang 2013 Engineering salaries Engineering software Engineering supplies Depreciation Engineering Cost Pool Total budgeted cost = $700,000 25 STAGE TWO—Engineering Allocate based on engineering transactions Cost Assignment Wang 2013 Engineering Cost Pool Total budgeted cost = $700,000 Mode I: 25% × $700,000 10,000 units = $17.50 per unit Mode II: 45% × $700,000 20,000 units = $15.75 per unit Mode III: 30% × $700,000 4,000 units = $52.50 per unit 26 STAGE ONE—Facility Various overhead costs related to general operations Activity cost pool Wang 2013 Plant depr. Property taxes Plant mgmt. Insurance Plant maint. Security Facility Cost Pool Total budgeted cost = $507,400 27 STAGE TWO—Facility Calculate the pool rate Cost Assignment Wang 2013 Budgeted Facilities Cost = $507,400 Budgeted Direct Labor Hours 118,000 = $4.30/hour Mode I: $4.30 per hr. × 3 hr. per unit $12.90 per unit Mode II: $4.30 per hr. × 4 hr. per unit $17.20 per unit Mode III: $4.30 per hr. × 2 hr. per unit $8.60 per unit 28 Other Overhead Costs Receiving and Inspection Cost Pool Board Overhead Mode I $ 200,000 Mode II 200,000 Mode III 200,000 × × × × % 6% 24% 70% ÷ ÷ ÷ ÷ Units 10,000 20,000 4,000 = Cost/Unit =$ 1.20 = 2.40 = 35.00 Material-Handling Cost Pool Board Overhead Mode I $ 600,000 Mode II 600,000 Mode III 600,000 × × × × % 7% 30% 63% ÷ ÷ ÷ ÷ Units 10,000 20,000 4,000 = Cost/Unit =$ 4.20 = 9.00 = 94.50 Quality-Assurance Cost Pool Board Overhead Mode I $ 421,000 Mode II 421,000 Mode III 421,000 × × × × % 20% 40% 40% ÷ ÷ ÷ ÷ Units 1...
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This document was uploaded on 03/06/2014.

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