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

Read the 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:

1. Using ABC, compute the Predetermined Overhead Rate for each activity.
2. Compute the cost of unused capacity for each activity and in total.
3. 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.
4. Compute the TOTAL and UNIT cost of making the full demand of trelli, assuming that Chandler bases its rates on the predetermined overhead rate.
5. 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).
6. 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 computed 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.

Deliverables

• Quantitative Analysis (Excel Required): You are required to use the provided Excel workbook to complete the quantitative analysis for this assignment.
• Qualitative Analysis (Word Required): Prepare a 2-3 page summary addressing the required qualitative analysis, as noted in the Student Workbook. Your paper is required to be formatted according to APA requirements. Be sure to incorporate key concepts from this unit's readings and properly cite your references according to APA requirements. Do NOT embed the results of your quantitative analysis in your Word document. You should only reference parts of your quantitative analysis in your written analysis. Your written responses to the qualitative prompts should not be presented in a question and answer format.

Painter ab 2.0.A. Merge & Center ce Wrap Text do General Clipboard 15 Font $.% Condition Alignment Formatting A Number B CHANDLER CORP. C D E F G Chandler Corp. template H 5 6 2a) Compute the Predetermined Overhead Rate ABC - Practical Capacity Estimated Cost Driver Activity (Practical Capacity) Cost Predetermined Overhead Rate (Activity Rate) 20,000 15,000 7 8 9 10 11 12 13 14 Activity (Resource) Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs 40,000 400,000 750 80,000 Cost Driver Unit leg.) design hrs engineering hrs parts square feet job setups machine hrs Label /des.hr /eng.hr /part /sq.ft. /set up /mach hr 15 16 2b) Compute the cost of unused capacity Cost of Unused Capacity 17 Estimated Cost Driver Activity (Practical Capacity) Total Cost of Unused Capacity 18 Unused Capacity Activity Rate Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory Total cost of unused capacity Used Capacity 19,500 14,750 39,000 210,000 640 64,000 Label des.hr /eng.hr part /sq.ft. set up /mach hr 25 tormindoverhead rate Format Painter Clipboard A Es Merge & Center - $ .% Font Conditional Format Cell Formatting -as Table Styles Inse Alignment Number Tables A B D E F G H 1 2b) Compute the cost of unused capacity Cost of Unused Capacity Estimated Cost Driver Activity (Practical Capacity) Total Cost of Unused Capacity Unused Capacity Activity Rate Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory Total cost of unused capacity Used Capacity 19,500 14,750 39,000 210,000 640 64,000 Label /des.hr /eng.hr /part /sq.ft. /set up /mach hr 32c) 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. ABC - Practical Capacity Total Pool Shade Requirement 30 Total Cost for Pool Shades Activity Rate Label /des.hr /eng.hr /part /sq.ft. 0 1 2 53 34 35 36 37 38 39 40 40 1.600 1 80 /set up Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Pool Shade /mach hr /unit 41 42 + th Data Student Template CaCopy Tell me what you want to do Paste Calibri 11 -A A == Wrap Text BIUD.-A. Merge & Center Open in Desktop App Format Painter Clipboard General Font $% 5 Alignment Conditional Format C Formatting - as Table - Style Tables Number A B D F G H 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. ABC - Practical Capacity Total Trellis Requirement Total Cost for Trellises Activity Rate Label /des.hr 3 4 5 Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Trellis /eng.hr /part sq.ft. set up /mach hr /unit 7 8 9 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 capacity plus required capacity for the full demand of pool shades). 52 53 54 ABC - Expected Capacity Total Pool Shade Total Cost for Requirement Pool Shades Current cost of Resource Expected Capacity Activity Rate 65 66 Label /des. he /eng.hr /part /sq.ft /set up Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs 68 69 70 /mach ho /unit B Number UNIT cost for a Trellis D E F G H 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 capacity plus required capacity for the full demand of pool shades). 2. 3 4 ABC - Expected Capacity Current cost of Resource 55 66 67 68 Expected Capacity Activity Rate Total Pool Shade Total Cost for Requirement Pool Shades 69 70 71 72 73 74 Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Pool Shade Label /des.hr /eng.hr /part /sq.ft. / set up /mach hr /unit 75 76 77 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 2f) required capacity for the full demand of trellises). 78 79 80 81 ABC - Expected Capacity Total Trellis Requirement Total Cost for Trellises Current cost of Resource Expected Capacity Activity Rate 82 83 84 85 Activity Design/Drafting Engineering Fabrication Label des.hr /eng.hr /part Case Study Data Student Template + Calculation Mode: Automatic Workbook Statistics o Tyne here to search Merge & Center Font $. % 90 Alignment Conditional Form Formatting as Table Tables Number B D E F G H 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). ABC - Expected Capacity Current cost of Resource Expected Capacity Activity Rate Total Trellis Requirement Total Cost for Trellises Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Trellis Label /des.hr /eng.hr /part /sq.ft. /set up /mach hr /unit Painter ab 2.0.A. Merge & Center ce Wrap Text do General Clipboard 15 Font $.% Condition Alignment Formatting A Number B CHANDLER CORP. C D E F G Chandler Corp. template H 5 6 2a) Compute the Predetermined Overhead Rate ABC - Practical Capacity Estimated Cost Driver Activity (Practical Capacity) Cost Predetermined Overhead Rate (Activity Rate) 20,000 15,000 7 8 9 10 11 12 13 14 Activity (Resource) Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs 40,000 400,000 750 80,000 Cost Driver Unit leg.) design hrs engineering hrs parts square feet job setups machine hrs Label /des.hr /eng.hr /part /sq.ft. /set up /mach hr 15 16 2b) Compute the cost of unused capacity Cost of Unused Capacity 17 Estimated Cost Driver Activity (Practical Capacity) Total Cost of Unused Capacity 18 Unused Capacity Activity Rate Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory Total cost of unused capacity Used Capacity 19,500 14,750 39,000 210,000 640 64,000 Label des.hr /eng.hr part /sq.ft. set up /mach hr 25 tormindoverhead rate Format Painter Clipboard A Es Merge & Center - $ .% Font Conditional Format Cell Formatting -as Table Styles Inse Alignment Number Tables A B D E F G H 1 2b) Compute the cost of unused capacity Cost of Unused Capacity Estimated Cost Driver Activity (Practical Capacity) Total Cost of Unused Capacity Unused Capacity Activity Rate Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory Total cost of unused capacity Used Capacity 19,500 14,750 39,000 210,000 640 64,000 Label /des.hr /eng.hr /part /sq.ft. /set up /mach hr 32c) 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. ABC - Practical Capacity Total Pool Shade Requirement 30 Total Cost for Pool Shades Activity Rate Label /des.hr /eng.hr /part /sq.ft. 0 1 2 53 34 35 36 37 38 39 40 40 1.600 1 80 /set up Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Pool Shade /mach hr /unit 41 42 + th Data Student Template CaCopy Tell me what you want to do Paste Calibri 11 -A A == Wrap Text BIUD.-A. Merge & Center Open in Desktop App Format Painter Clipboard General Font $% 5 Alignment Conditional Format C Formatting - as Table - Style Tables Number A B D F G H 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. ABC - Practical Capacity Total Trellis Requirement Total Cost for Trellises Activity Rate Label /des.hr 3 4 5 Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Trellis /eng.hr /part sq.ft. set up /mach hr /unit 7 8 9 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 capacity plus required capacity for the full demand of pool shades). 52 53 54 ABC - Expected Capacity Total Pool Shade Total Cost for Requirement Pool Shades Current cost of Resource Expected Capacity Activity Rate 65 66 Label /des. he /eng.hr /part /sq.ft /set up Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs 68 69 70 /mach ho /unit B Number UNIT cost for a Trellis D E F G H 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 capacity plus required capacity for the full demand of pool shades). 2. 3 4 ABC - Expected Capacity Current cost of Resource 55 66 67 68 Expected Capacity Activity Rate Total Pool Shade Total Cost for Requirement Pool Shades 69 70 71 72 73 74 Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Pool Shade Label /des.hr /eng.hr /part /sq.ft. / set up /mach hr /unit 75 76 77 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 2f) required capacity for the full demand of trellises). 78 79 80 81 ABC - Expected Capacity Total Trellis Requirement Total Cost for Trellises Current cost of Resource Expected Capacity Activity Rate 82 83 84 85 Activity Design/Drafting Engineering Fabrication Label des.hr /eng.hr /part Case Study Data Student Template + Calculation Mode: Automatic Workbook Statistics o Tyne here to search Merge & Center Font $. % 90 Alignment Conditional Form Formatting as Table Tables Number B D E F G H 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). ABC - Expected Capacity Current cost of Resource Expected Capacity Activity Rate Total Trellis Requirement Total Cost for Trellises Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Trellis Label /des.hr /eng.hr /part /sq.ft. /set up /mach hr /unit