All information required for this assignment is provided in the Unit 2 Student Workbook Download Unit 2 Student Workbook[Excel] for this unit.

Read the Chandler Corporation Download Chandler Corporation[PDF] case study and complete the following requirements.

Quantitative Analysis:

Chandler Corporation is currently producing several products, including both custom and standard designs. It has received requests for two new products: swimming pool shades and landscape trellises. It is considering whether to produce either or both of these products. Based on the projections in Exhibits 1 to 3 describing the current capacity and required capacity needs for the new products, complete the following requirements:

Using ABC, compute the Predetermined Overhead Rate for each activity.

Compute the cost of unused capacity for each activity and in total.

Compute the TOTAL and UNIT cost of making the full demand of pool shades assuming that Chandler bases its rates on the predetermined overhead rate.

Compute the TOTAL and UNIT cost of making the full demand of trellis, assuming that Chandler bases its rates on the predetermined overhead rate.

Compute the TOTAL and UNIT cost of making the full demand of pool shades assuming that Chandler bases its rates on EXPECTED capacity (used capacity plus required capacity for the full demand of pool shades).

Compute the total and unit cost of making the full demand of trellises assuming that Chandler bases its rates on EXPECTED capacity (used capacity plus required capacity for the full demand of trellises).

Qualitative Analysis:

In a 2-3 page report, based on your quantitative analysis, discuss the results of what your quantitative analysis means for Chandler. When considering a decision to make the new products, would costs compute using practical capacity (c and d) or expected capacity (e and f) as the denominator provide better information to Chandlers management? Explain your answer. Support your recommendation with a minimum of 3 academic resources.

Excel

Exhibit 2 Resource needs for potential new products \begin{tabular}{|l|r|r|} \hline & Cost Driver & \multicolumn{1}{|c|}{Poolshaderequirements} \\ \hline Activity (Resource) & & \\ \hline Design/Drafting & design hours & 30 \\ \hline Engineering & engineering hrs & 4 \\ \hline Fabrication & parts (per demand) & 40 \\ \hline Powder coating & square feet (per demand) & 1600 \\ \hline Scheduling & job setups (per demand) & 1 \\ \hline General factory & machine hrs (per demand) & 80 \\ \hline & Pool shade & Trellis \\ \hline Price per unit & 42,500 & 4,300 \\ Material cost per unit & 18,750 & 700 \\ \hline \end{tabular} Chandler Corp. template 2a) Compute the Predetermined Overhead Rate 2b) Compute the cost of unused capacity 2c) Compute the TOTAL and UNIT cost of making the full demand of pool shades assuming that Chandler bases its rates on the predetermind overhead rate. \begin{tabular}{|l|} \hline ABC - Practical Capacity \\ \hline \multicolumn{1}{|c|}{ Activity } \\ \hline Design/Drafting \\ \hline Engineering \\ \hline Fabrication \\ \hline Powder coating \\ \hline Scheduling \\ \hline General factory costs \\ \hline Material \\ \hline TOTAL Cost \\ \hline Number of units \\ \hline UNIT cost for a Pool Shade \\ \hline \end{tabular} 2d) Compute the TOTAL and UNIT cost of making the full demand of trellis assuming that Chandler bases its rates on the predetermind overhead rate. \begin{tabular}{|l|} \hline ABC - Practical Capacity \\ \hline \multicolumn{1}{|c|}{ Activity } \\ \hline Design/Drafting \\ \hline Engineering \\ \hline Fabrication \\ \hline Powder coating \\ \hline Scheduling \\ \hline General factory costs \\ \hline Material \\ \hline TOTAL Cost \\ \hline Number of units \\ \hline UNIT cost for a Trellis \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline & & Total & Total Cost \\ \hline Activity Rate & Label & Requirement & Trellises \\ \hline & /des. hr & & \\ \hline & /eng. hr & & \\ \hline & /part & & \\ \hline & /sq.ft. & & \\ \hline & /set up & & \\ \hline & /mach hr & & \\ \hline & /unit & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} 2e) Compute the total and unit cost of making the full demand of pool shades assuming that Chandler bases its rates on expected capacity (used capacitv olus reauired capacitv for the full demand of pool shades). Compute the total and unit cost of making the full demand of trellises assuming that Chandler bases its rates on expected capacity (used 2f) capacity plus required capacity for the full demand of trellises)