ABC WHAT IF ANALYSIS DATA (2 ND Excel File) CHECK FIGURES AX40 Traditional Unit Cost $59 98 EX90 ABC Unit Cost $117 70 The What If part of the assignment will help you determine whether you have correctly used cell referencing in your spreadsheets The countrys economic situation has improved over the past year and Adria Manufacturing has had some cost changes In your data block area (the highlighted area in your new What If file make the following changes AX40 EX90 Direct materials cost per unit has changed for both products $32 00 $50 00 The new union contract that the company signed at the end of last year increased labor costs for both models ($13 00 per hr ) $9 75 $13 00 The direct labor hours per unit has not changed 0 75 hr 1 0 hr Due to the increase in demand for the EX90 product, production will increase next year The production for AX40 will remain the same 40,000 11,000 The company has made several improvements over the past year to improve efficiency and lower costs for the popular EX90 product The following estimated overhead costs have changed for next year Estimated Overhead Expected Activity Cost AX4 0 EX 90 Maintaining parts inventory $164,925 75 150 Processing purchase orders $ 91,800 800 220 Quality control $190,000 2,000 2,750 Machine related $549,900 4,000 7,700 The company has changed to a computer based inventory management system which has improved the efficiency and lowered the overall cost of managing the parts inventory Improvements in production efficiency reduced the number of tests run on the AX40 and EX90 models thus lowering the total cost of quality control Engineering improvements has reduced the amount of machine time needed to produce the EX90 Your spreadsheets should automatically recalculate using the new data You should not have to change any of the cell references or formulas for either of your statements (If you dothen you have done the cell referencing incorrectly ) You are only changing the Data Block area (the highlighted area)

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ABC WHAT IF ANALYSIS DATA (2 ND Excel File): CHECK FIGURES: AX40 Traditional Unit Cost: $59.98 EX90 ABC Unit Cost: $117.70 The What If part

ABC WHAT IF ANALYSIS DATA (2^ND Excel File):

CHECK FIGURES: AX40 Traditional Unit Cost: $59.98

EX90 ABC Unit Cost: $117.70

The What If part of the assignment will help you determine whether you have correctly used cell referencing in your spreadsheets. The countrys economic situation has improved over the past year and Adria Manufacturing has had some cost changes.

In your data block area (the highlighted area in your new What If file make the following changes: AX40 EX90

Direct materials cost per unit has changed for both

products. $32.00 $50.00

The new union contract that the company signed at the

end of last year increased labor costs for both models

($13.00 per hr.). $9.75 $13.00

The direct labor hours per unit has not changed. 0.75 hr. 1.0 hr.
Due to the increase in demand for the EX90 product,

production will increase next year. The production

for AX40 will remain the same. 40,000 11,000

The company has made several improvements over the past year to improve efficiency and lower costs for the popular EX90 product. The following estimated overhead costs have changed for next year:

Estimated

Overhead Expected Activity

Cost AX40 EX 90

Maintaining parts inventory* $164,925 75 150

Processing purchase orders $ 91,800 800 220

Quality control** $190,000 2,000 2,750

Machine related*** $549,900 4,000 7,700

*The company has changed to a computer based inventory management system which has improved the efficiency and lowered the overall cost of managing the parts inventory.

**Improvements in production efficiency reduced the number of tests run on the AX40 and EX90 models thus lowering the total cost of quality control.

***Engineering improvements has reduced the amount of machine time needed to produce the EX90.

Your spreadsheets should automatically recalculate using the new data. You should not have to change any of the cell references or formulas for either of your statements. (If you dothen you have done the cell referencing incorrectly.) You are only changing the Data Block area (the highlighted area).