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1. Developing test programs 2. Making probe cards 3. Testing products 45,000 Engineering hours 0.25 0.75 0.90 0.35 0.45 0.80 60,000 Development hours 600,000Test hours
1. Developing test programs 2. Making probe cards 3. Testing products 45,000 Engineering hours 0.25 0.75 0.90 0.35 0.45 0.80 60,000 Development hours 600,000Test hours 0.55 92,000Number of change orders Handling wafer lots 200,000Number of moves 6. 0.70 0.30 1,100,000Number of dies 7. Inserting dies Number of purchase orders Number of receving orders lo.3s Inspection hours Distance moved 0.80 500,000 64,000 75,000 400,000 32,000 8. Purchasing materials 10. Inspecting materials o.50 0.50 Total activity cost Previous Required 1. Using the five most expensive activities, calculate the overhead cost assigned to each product. Assume that the costs of the other activitles are assigned in cost of the five activities. If required, round your answers to the nearest dolar Cost Inserting dies Ned MacBook Air decimal places and the 5.20 % system and then by an approximately relevant ABC approach. 1. Take the five most expensive activities and calculate OH cost overhead for them to the five activities which assigned to each product. The remaining items are totaled and this is the amount used to alocate are most expensive using the proportion for each activities cost. cost of Wafer A. Activity Based costing uses both unit-level and non-unit- to identify resource drivers to assign resource 3. Change amounts and recalculate the consumption ratios to use for finding out the ABC evel drivers and reflects a more accurate picture of actual OH consumed. Simplification approach eliminates the need to Prevous Net MacBook Air
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