more aetivity based eosting Return to the example in Table 9.8 where full eosting is used. Constmct a spreadsheet model that will calculate the product eosts in three ways: using the four pool procedure in the text, using a single pool based on DU, and using a single pool based on DM$. Be certain to verify that your model replicates the (full cost)

numbers reported in Table 9.9. As a seeond check, examine the product eosts when output is very large, say, 1013 for each product.

a] Let the production schedule be ql = 50,000, q2 = 50,000, and

Interpret the results.

b] Let the production schedule be ql = 500, 'b = 50,000 and 'b = 50,000. Interpret the results. Be certain you contrast the unit costs with those detennined in part [a].
e] Let the produetian schedule be ql = 500, 'b = 500 and 'b = O. Interpret the results.
d] Suppase the first product uses a bateh size of 50 instead of 500 units. Let the production schedule be ql = 50,000, 'b = 50,000 and 'h = 50,000. Also try ql = 2,500, 'b = 2,500 and 'b = 2,400. Interpret the results.
e] Repeat [d] for the ease where the first produet uses a bateh size of 2,500 units.
f] Why is the cost of the third produet minimized when the separate pool procedure is used, despite the fact this product is the most complex of the three, in nearly all of these cases?AppendixLO1