20DL Main Test Room 210311633201 MH 63MH Mechanical Test Room 192626317103 MH

20dl main test room 210311633201 mh 63mh mechanical

This preview shows page 2 - 6 out of 6 pages.

Administrative and Technical Overhead – \$684,603/\$3,260,015 DL ≈ \$0.20/DL\$ Main Test Room – \$2,103,116/33,201 MH ≈ \$63/MH Mechanical Test Room – \$1,926,263/17,103 MH ≈ \$113/MH Step 6. Apply the cost drivers. One Lot of: ICA ICB Capacitor Amplifier Diode DL\$ (*) \$917 \$2,051 \$1,094 \$525 \$519 Main Room MH (*) 8.5 14.0 3.0 4.0 7.0 Mech. Room MH (*) 10.0 26.0 4.5 1.0 5.0 Cost/lot - System A (a) \$2,247 \$5,025 \$2,680 \$1,286 \$1,272 Cost/lot - System B (b) \$2,580 \$5,661 \$1,913 \$1,030 \$1,583 Cost/lot - System C (c) \$2,766 \$6,281 \$2,010 \$995 \$1,629 (*) Taken from exhibit 6 (a) Computed as DL\$ + \$1.45/DL\$ x DL\$. e.g., for ICA: \$917 + \$1.45/DL\$ x \$917 (b) Computed as DL\$ + \$0.20/DL\$ x DL\$ + \$80/MH x Total MH. e.g., for ICA: \$917 + \$0.20/DL\$ x \$917 + \$80/MH x (8.5+10.0) MH (c) Computed as DL\$ + \$0.20/DL\$ x DL\$ + \$63/MH x Main MH + \$113/MH x Mech MH e.g., for ICA: \$917 + \$0.20/DL\$ x \$917 + \$63/MH x 8.5 MH + \$113/MH x 10.0 MH 2
If you like the pictures (as I do), here they are for the three cost systems. A. Existing Cost System Total Costs \$7,973,997 Direct Labor \$3,260,015 (allocated directly) Total Overhead \$4,713,982 (\$1.45/DL\$) One Lot of ICA \$917 DL \$1330 OH \$2,247 One Lot of ICB \$2051 DL \$2974 OH \$5,025 One Lot of Capacitor \$1094 DL \$1586 OH \$2,680 One Lot of Amplifier \$525 DL \$761 OH \$1,286 One Lot of Diode \$519 DL \$753 OH \$1,272 995 other lots for the month and over/under applied overhead 3
B. System Proposed by the Accounting Manager Total Costs \$7,973,997 Direct Labor \$3,260,015 (allocated directly) Admin & Engineer OH \$684,603 (\$0.20/DL\$) Testing Room OH \$4,029,379 (\$80/MH) One Lot of ICA \$917 DL \$183 AE OH \$1480 Test \$2,580 One Lot of ICB \$2051 DL \$410 AE OH \$3200 Test \$5,661 One Lot of Capacitor \$1094 DL \$219 AE OH \$600 Test \$1,913 One Lot of Amplifier \$525 DL \$105 AE OH \$400 Test \$1,030 One Lot of Diode \$519 DL \$104 AE OH \$960 Test \$1,583 995 other lots for the month and over/under applied overhead 4
C. System Proposed by the Consultant Total Costs \$7,973,997 Direct Labor \$3,260,015 (allocated directly) Admin & Engineer OH \$684,603 (\$0.20/DL\$) Main Test Room OH \$2,103,116 (\$63/MH) Mech Test Room OH \$1,926,263 (\$113/MH) One Lot of ICA \$917 DL \$183 AE OH \$536 Main \$1130 Mech \$2,766 One Lot of ICB \$2051 DL \$410 AE OH \$882 Main \$2938 Mech \$6,281 One Lot of Capacitor \$1094 DL \$219 AE OH \$189 Main

You've reached the end of your free preview.

Want to read all 6 pages?

• Winter '20