1 1 -1 11 1 Merge & Center $ % ) D10 fx 3000 s! 28 Conditional For Formaning B D E 4 1 ABC In Class Hands On Example - Information Page 2 BUDGETED PROJECTED) FOR YEAR 202X 3 Units To Be Produced for the Year 5 DL Hours to produce for the Year 6. DL Cost for the Year $ 7 DM Cost for the Year $ 8 Machine Hours for the Year 9 Inspection Hours for the Year 10 Engineering Hours for the Year 11 Facility Use (Square Feet) for the Year 12 13 Product A 90.000 135,000 1.200.000 5 2,750,000 $ 25.000 Products 85.000 125,000 1,300,000 4,500,000 $ 31,000 11,000 500 5,000.00 Product C 8.500 1,000 19.000 1,000,000 80,000 8.000 3,000 5,000.00 Totata 183.500 261.000 2,519,000 1.250.000 130.000 19.000 4000 20.000.00 500 10,000.00 15 Projected Budgeted Overhead Amount Cost Pool Driver 16 17 Machine Cost Pool $ 800,000 Machine Hours 18 Inspection Cost Pool 5 550,000 Inspection Hours 19 Engineers Coul Pool $ 350,000 Engineering Hours 20 Facility & General Cost Pool $ 600.000 Square Footage 21 TOTAL BUDGETED OH s 2,300,000 22 23 Step 1 Calculate the ABC Overhead Application Rate 24 25 Step #2 - Assign the Direct Material Costa, Direct Labor Costs and Apply Overhead to the actual January Results 26 28 ACTUAL RESULTS FOR JANUARY 202X Product 7200 10.500 90,500.00 $ 220,000.00 2,500 35 10.000.00 30 Units Produced 31 DL Hours to produce 32 DL. Cost 33 DM Cost 34 Machine Hours as inspection Hours 26 Engineena Houn 37 Factyle Square Feel Product 7,000 9.500 100 000 000 350,000.00 3.200 790 42 6.000,00 Product 000 90 1.000.000 80,000.00 4500 000 200 1.000 10.000 1240000 130.00000 23 39 40 42 44 40 50 Process Flow no ABC Method Process Diagram Information Traditional Method Calculation Method QUESTION 2 Using an Activity Based Costing method to allocate overhead, what is the per unit cost you calculated for Product A, Product B and Product A Product A Product B Product C 40.78 $ 65.78 $ 200,56 B. Product A Product B Product C $ 48.90 $ 72.44 $ 226.05 C. Product A Product B Product C $ 56.90 $ 78.99 $ 235 67 D. Product A Product B Product C $ 30.56 $ 45.67 $ 220.31 E. Product A Product B Product C $ 54.56 $ 120.34 $ 23.34 QUESTION 3 Based on your analysis, the results could be described best by the following statement: A. The cost of the three products were no different using the Tradition versus ABC method, B. The Traditional Method over costed Product A and Product B and under costed Product C. The company should use the costing information from the Traditional method to price all three products. D. The Company should trust the cost results using the Traditional Method. Save All A Click Save and Submit to save and submit. Click Save All Answers to save all answers