7 Exercise 6 - Manufacturing Company makes 3 products: A, B, and C. Shown below are the estimated costs and estimated production data for next year. Cost Pools Overhead Cost Driver Customer Service $60,000 Customers Design $40,000 Modifications 3 Storage $20,000 Square feet used 2 Ordering & Receiving $10,000 Number of orders 0 Packaging $30,000 Number of units 1 Supervision $20,000 Number of employees 2 Total Estimated overhead $180,000 4 Prod A Prod B Prod C Total 5 Customers 60 100 40 200 6 Modifications 15 25 10 50 7 Square feet used 1,000 600 400 2,000 8 Number of orders 60 80 20 160 9 Number of units 6,000 4,000 2,000 12,000 0 Number of employees 3 1 1 5 22 Estimates By Product Prod A Prod B Prod C Total 23 Sales $400,000 $380,000 $330,000 $1.110,000 24 Direct materials costs $160,000 $100,000 $80,000 $340,000 25 Direct labor costs $100,000 $120.000 $180,000 $400.000 27 Calculate ABC rates for each cost pool: 29 a) Customer Service per customer 30 b) Design per modificaton 31 c) Storage per sq. ft. 32 d) Ordering & Receiving per order 33 e) Packaging per unit 34 Alsupervision per employee X X X XXX X X X x x x X X X X X X X X X 36 Calculate the overhead assigned using ABC method: 37 Prod A Prod B Prod C 38 ) Customer Service 39 h) Design 40 i) Storage 41 D Ordering & Receiving 42 k) Packaging 431) Supervision 44 m) Total Overhead Assigned 45 46 Calculate total cost & net profit using ABC method: 47 Prod A Prod B Prod C 48 m) Total Cost (DM+DL+MO) 49 0) Net Profit 50 51 p) Calculate single plant-wide overhead rate: 52 (assume the overhead allocation base is direct labor) 53 54 Calculate the following using the single plant-wide rate: 55 Prod A Prod B Prod C 56 m) Total Overhead Assigned 57 r) Total Cost 58 ) Net Profit 59 60 X X X XXX per DL $ X X X XXX XXX