Step 3 rate per driver unit for machine related costs

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Step 3. Rate per driver unit for Machine related costs(pool 2)___352,600____divided by___16,400____=_____21.50______Step 4:Rate per driver unit for Production order related costs (pool 3)_____174,120____divided by______41_____=____4246.83___Step 5:Rate per product line for parts administration(pool 4)______167,500___________divided by____28__________=_____5982.14__________Step 6: Rate per driver unit for Inventory, receiving, shipping costs (pool 5)_______197, 450_________divided by____1240__________=_____159.23__________Step 7:Rate per product line for facility level costs (pool 6) :=106380/3=35460
ACCOUNTING 2332 FIRST COURSE PROJECT SPRING 2008Total overhead foreyepieces:Pool 1____4.067________X____28800_______ =Pool 2_____21.5________ X____2400________ =Pool 3_____4246.83________ X____12________ =Pool 4___5982.14__________ X _____2________ =Pool 5_____159.23________ X ______30_______ =Pool 634560=_________TOTALOVERHEAD ALLOCATED TO EYEPIECES =Total overhead forbinoculars:Pool 1___4.067_________X___31500_________ =Pool 2____21.50_________ X_____6000_______ =Pool 3____4246.83_________ X____15________ =Pool 4____5982.14_________ X ______6_______ =Pool 5____159.23_________ X _____210________ =Pool 634560=_________TOTALOVERHEAD ALLOCATED TO BINOCULARS =Total overhead forcamera lens:Pool 1_____4.067_______X____14000________ =Pool 2____21.50_________ X___8000_________ =Pool 3____4246.83_________ X_____14_______ =Pool 4_____5982.14________ X _____20________ =Pool 5_____159.23________ X ______1000_______ =Pool 634560=_________TOTAL OVERHEAD ALLOCATED TO CAMERA LENSD.Now compute the cost per unit of overhead7
ACCOUNTING 2332 FIRST COURSE PROJECT SPRING 2008ProductTotalOverheadAllocatedProduction inUnitsOverheadCost per UnitEYEPIECES:271,892.742400011.33BINOCULARS:425,604.092100020.27CAMERAL LENS:602,726.42700086.10E.Now compute the total unit cost and the profit margin per unit using activitybased costing.ProductLicense& patentfees perunitDirectmaterialsand laborper unitOverheadCost per unitTotal UnitCostEYEPIECES:8.04011.3359.33BINOCULARS:203220.2772.27CAMERAL LENS:258086.10191.1ProductSelling PriceTotal UnitCostProfit MarginPer UnitEYEPIECES:6459.334.67BINOCULARS:8072.277.73CAMERAL LENS:150191.10(41.10)NOTE: ANSWERING PARTS F AND G OF ZEUS OPTICALS BELOW8
ACCOUNTING 2332 FIRST COURSE PROJECT SPRING 2008There is no "single" correct answer.Your answers should show some thought and professionalpresentation. If you are unwilling to be professional in your answer, then we are unwilling to give you fullcredit.Short phrase, single word scrawled answers will not receive full credit.F.Based on the ABC profit margins, what actions would you recommend forZeus’ management.G.Suppose Zeus were to achieve a level of sales for camera lenses equal to14,000 units (two times the current level).How would this affect youranalysis of the profitability of this product line and what additionalinformation if any would you need in order to improve your analysis?9
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