Ac you learned In the previou c ohaptert, Current Declone hac two maln produot llinecoompocite kayakc, whloh are handmade and very labor-lntenclve, and rotomolded kay akc, whloh requlre lec c labor but employ more expenclve equlpment. Current Declon e" controller, Dlane Bucwell, Ic now eveluating ceveral dirferent methode of acclgning overhasd to thece produotc. It le lmportant to encure that oocte are appropriately accloned to the oompeny"c produote. At the came tims, the cyctem that le uced muct not be co oomplex that itt oocte are greater than ite benefitc. Dlane hac dsolded to uce the following aotivitlec and oocte to sveluate the me thode of accloning overhe ad. Ac Diane examinec the data, che deoldec that the ooct of operating the oven for the rotomolded kay ake and the oo ct of operating the veouum lline for the oompocite kay ake oen be direotly acclgned to sooh of thece produot linec and do not nesd to be alloosted with the otheroocte. Regulred Use cheat tab Part 1 . 1. For purpooes of this andyat, assume that Cument Designs uses 5234,000 in elroct labor coats 60 produon 1,000 compod be kayale and 5286,000 in dired labor costs to produce 4,000 robomoldod kayjks each year. (a) One method of alocathg orerhasd would allocate the common sts bo esch product line by uaing an alocabon bass guch as the number of employees in working on esch type of kayak or the amount of Ascbory sesoe used for the produdion of esch type of kayak. Diane knows that about sos of the area of the plant and 50\% of the employses work on the compoabe kapks, and the remaining sasce and other employees work on the robomoldod kayaks. Using this intomation, and remembentrg that the oot of operathg the owen and vacuum Ine have beon diroctly aseignod, debemine the botal amount to be asilnod to the compodbe kapek line and the robomoldod kapel line, and the amount to be assignod bo esch of the units in esch line. (b) Another mothod of allocsing oretwod is to use dirou labor dollass as an alocation bask. Remembering that the coats of the oven and the vacuum Ine have boen askignod dirotly to the produd lines, alocato the remaining coats using dinoct labor dolars as the allocstion basts. Then, dobermine the amount of overhosd that should be assignod bo esch unt of e ach produd line using this mothod. (c) Actultpesed coathe requires a coat dilver sor esch coat pool. Use the following information bo assign the coats to the produd lines using the actulbpbased coating Briver Amenent for What amount of ovehesd should be assigned to each composite kayak using this method? What anount of ovehesed should be assigned to each rotomolded kayak using this method? (d) Which of the tree methods do you think Curent Designs should use? Why? WHAT-IF? 2. Perform what-ft analysis to answer the following indegendent questions: a. Suppose the number of prolotypes of comgosite kayaks incresses to 45 as a resul of assitional testing requred by the American Boeting Council. Creale a column sparkine using the overtead coss assigned to each kayak model under activty-based costing with and without this change. Visualy idently what effect tis wil hwve on the cost of each model of kayak. What ocours to the lotal costs of enployee supervision? b. Supgose instead, hat the estmated cost of creating and lesting prototypes increased by 5100.000 . Detemine the percentage charge in the prototype cos allocations for each kayak model. Explain how the effect of this charge in the unt cost of each model of kayak difers trom the change in number of pretotypes. Ac you learned In the previou c ohaptert, Current Declone hac two maln produot llinecoompocite kayakc, whloh are handmade and very labor-lntenclve, and rotomolded kay akc, whloh requlre lec c labor but employ more expenclve equlpment. Current Declon e" controller, Dlane Bucwell, Ic now eveluating ceveral dirferent methode of acclgning overhasd to thece produotc. It le lmportant to encure that oocte are appropriately accloned to the oompeny"c produote. At the came tims, the cyctem that le uced muct not be co oomplex that itt oocte are greater than ite benefitc. Dlane hac dsolded to uce the following aotivitlec and oocte to sveluate the me thode of accloning overhe ad. Ac Diane examinec the data, che deoldec that the ooct of operating the oven for the rotomolded kay ake and the oo ct of operating the veouum lline for the oompocite kay ake oen be direotly acclgned to sooh of thece produot linec and do not nesd to be alloosted with the otheroocte. Regulred Use cheat tab Part 1 . 1. For purpooes of this andyat, assume that Cument Designs uses 5234,000 in elroct labor coats 60 produon 1,000 compod be kayale and 5286,000 in dired labor costs to produce 4,000 robomoldod kayjks each year. (a) One method of alocathg orerhasd would allocate the common sts bo esch product line by uaing an alocabon bass guch as the number of employees in working on esch type of kayak or the amount of Ascbory sesoe used for the produdion of esch type of kayak. Diane knows that about sos of the area of the plant and 50\% of the employses work on the compoabe kapks, and the remaining sasce and other employees work on the robomoldod kayaks. Using this intomation, and remembentrg that the oot of operathg the owen and vacuum Ine have beon diroctly aseignod, debemine the botal amount to be asilnod to the compodbe kapek line and the robomoldod kapel line, and the amount to be assignod bo esch of the units in esch line. (b) Another mothod of allocsing oretwod is to use dirou labor dollass as an alocation bask. Remembering that the coats of the oven and the vacuum Ine have boen askignod dirotly to the produd lines, alocato the remaining coats using dinoct labor dolars as the allocstion basts. Then, dobermine the amount of overhosd that should be assignod bo esch unt of e ach produd line using this mothod. (c) Actultpesed coathe requires a coat dilver sor esch coat pool. Use the following information bo assign the coats to the produd lines using the actulbpbased coating Briver Amenent for What amount of ovehesd should be assigned to each composite kayak using this method? What anount of ovehesed should be assigned to each rotomolded kayak using this method? (d) Which of the tree methods do you think Curent Designs should use? Why? WHAT-IF? 2. Perform what-ft analysis to answer the following indegendent questions: a. Suppose the number of prolotypes of comgosite kayaks incresses to 45 as a resul of assitional testing requred by the American Boeting Council. Creale a column sparkine using the overtead coss assigned to each kayak model under activty-based costing with and without this change. Visualy idently what effect tis wil hwve on the cost of each model of kayak. What ocours to the lotal costs of enployee supervision? b. Supgose instead, hat the estmated cost of creating and lesting prototypes increased by 5100.000 . Detemine the percentage charge in the prototype cos allocations for each kayak model. Explain how the effect of this charge in the unt cost of each model of kayak difers trom the change in number of pretotypes