After reviewing the new activity-based costing system that Nancy chen has implemented at IVC's 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 emoloyees in the plant to change over the machines more quickly with the same reliability He plans to produce 109.000 units of the Sport model and 44,500 units of the Pro model in the first quarter. He 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 34 percent Cost Drivers and Cost Driver Volumes --CenterPoint Manufacturing Facility Cont orier VO Pro Total Ably but Ah Marchina-hours 6.900 30,00 37,000 Setting up the setup hours 490 Marine Production hund 17 Pachung Icting and Dictinor hours 63.000 34. 18,200 Nuber of shipset 100 40 539 56 21 Third Quarter Unit Cost Report Activity-Based Costing--CenterPoint Manufacturing Facility Saar rectoral 51, 509,000 12,010,000 Diabo bly 759.000 $18.00 27.000 Yutal direct labor 51,758.000 50.000 Drector 33.267 116.000 bu in der $20,000 32,000 Settinchi wetu noun) 14.10 107.000 Inspecting and interdict laborhoor) (531) 310, 3165 0.00 103.00 100 Required: Compute the amount of overhead allocated to the Sportond the Pro drones for the first quartet ung activity-based coming Assume that all events are the same in the first quarter on in the third quarter except for the number of cerup hours Assume the costar Setup hour main at 5900 TRADE After reviewing the new activity-based costing system that Nancy chen has implemented at IVC's 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 emoloyees in the plant to change over the machines more quickly with the same reliability He plans to produce 109.000 units of the Sport model and 44,500 units of the Pro model in the first quarter. He 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 34 percent Cost Drivers and Cost Driver Volumes --CenterPoint Manufacturing Facility Cont orier VO Pro Total Ably but Ah Marchina-hours 6.900 30,00 37,000 Setting up the setup hours 490 Marine Production hund 17 Pachung Icting and Dictinor hours 63.000 34. 18,200 Nuber of shipset 100 40 539 56 21 Third Quarter Unit Cost Report Activity-Based Costing--CenterPoint Manufacturing Facility Saar rectoral 51, 509,000 12,010,000 Diabo bly 759.000 $18.00 27.000 Yutal direct labor 51,758.000 50.000 Drector 33.267 116.000 bu in der $20,000 32,000 Settinchi wetu noun) 14.10 107.000 Inspecting and interdict laborhoor) (531) 310, 3165 0.00 103.00 100 Required: Compute the amount of overhead allocated to the Sportond the Pro drones for the first quartet ung activity-based coming Assume that all events are the same in the first quarter on in the third quarter except for the number of cerup hours Assume the costar Setup hour main at 5900 TRADE
