+ 3 00 points awarded Alter reviewing the new activity-based costing system that Nancy Chen has implemented at ive CenterPoint manufacturing facility Tom Spencer, the production supervisor believes that he can reduce production costs by reducing the time spent on machine setups He has spent the last month working with employees in the plant to change over the machines more quickly with the same reliability Ho plans to produce 104.000 units of the Sport model and 42.000 units of the Pro model in the first quarter Ho believes that with his more efficient setup routine, he can reduce the number of setup hours for both the Sport and the Pro products by 29 percent Cost Drivers and Cost Driver Volumes-CenterPoint Manufacturing Facilty Cost Driver we Activity Cost Driver Sport Pro Total Assembly building Assembling Machine-hours 6,400 30,400 36,800 Setting up machines Setup hours 440 484 Handling material Production runs 12 44 56 Packaging building Inspecting and packing Direct labor-hours 61,600 23,600 85,200 Shipping Number of shipments 104 200 Scored 24 312 re rences Third Quarter Unit Cost Report Activity-Based Costing-CenterPoint Manufacturing Facility Sport Direct material $1,504,000 Direct labor Assembly 3 754,000 $ 500,000 Packaging 994.000 368.000 Total direct labor 000 S926.000 Direct costs $32527000 10.00 Overhead Assesbly building Assembling ($3e per ) $ 192,00 $ 912.000 Setting up machine ( 5900 per setup hour 39.600 395,000 Handling material (@$3,000 per run) 36.000 132,000 Packaging building Inspecting and packing @ $5 per direct labor-hour 385.00 118.00 Shipping to $1,320 per shipment) 137200 216.566 Total ABC overhead $712, 880 51.832.560 Total ANC cost 53.964,380 35,216,560 Number of units 124,000 42,000 Unit cost 38.12 $ 124.20 Homework 9. Chapter 9 Inspecting and packing Direct labor-hours Shipping Number of shipments 48.33/100 Total points warded He 61,600 104 23,600 85,200 200 312 3 0/30 points awarded Scored Third Quarter Unit Cost Report, Activity-Based Costing-CenterPoint Manufacturing Facility Direct material sport Pro 32504,000 52,488,000 Direct labor Assembly Packaging $ 754,000 $ 600,000 994,000 368.000 Total direct labor 33.240,000 Direct costs 1976.000 33252000 $3,384,00 Overhead Assembly building Assembling ( 530 per M) $ 192,00 5912,000 Setting up nachine ( 5900 per setup hour 39,600 395,000 Handling material to $3,000 per run 36,000 132,200 Packaging building Inspecting and packing 55 per direct labor-hour) 308,000 118,000 Shipping ($1,320 per shipment) 137,28 274,560 Total ABC overhead 5.712,880 $1.8200 Total ABC cost $3,964,880 55,216,560 Number of units 109,00 42,000 Unit cost 5 30.12 $ 124,20 ebook P References Required: a. Compute the amount of overheed allocated to the Sport and the Pro drones for the first quarter using activity-based costing Assume that all events are the same in the first quarter as in the third quarter except for the number of setup hours Assume the cost of a setup hout remains at $900. Model Sport Pro Totat ADC Overhead $ 31 $ 312
