Inspections a Royale 54.035,000 b. Cost/unit-Royale 598140 r ating and ACC res Instructions & Assign the total 2032 manufacturing overhead costs to the two products using activity-based costing (ABC) and determine the overhead cost per unit What was the cost per unit and gross profit of each model using ABC7 c. Are management's future plans for the two models sound? Explain P17.1A (LO 1, 2), AN Writing Shaker Stairs Co designs and builds factory made premium wood Scars for homes. The manufactured stain oponents (spindles risers, hangers, hand rails) per alinstallation of stairways of varying lengths and with all are of white cak wood. Budgeted man facturing overhead costs for the year 2022 are as follows Overhead Cost Pools Amount $ 75,000 Handling materials 82.000 Production (cutting, milling, finishing) 210,000 Setting up machines 105,000 90,000 Inventory control (raw materials and finished goods) 126.000 180,000 Total budgeted overhead costs SN68,000 Purchasing Inspecting Utilities For the last 4 years. Shaker Stairs Co. has been charging overhead to products on the basis of ma chine hours. For the year 2022, 100.000 machine hours are budgeted. Jeremy Nolan, owner-manager of Shaker Stairs Co., recently directed his accountant, Bill Seagren, to implement the activity based costing system that he has repeatedly proposed. At Jeremy Nolan's request Bill and the production foreman identify the following cost drivers and their usage for the previously budgeted overhead cost pools. Estimated Use of Cost Drivers Activity Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Cost Drivers Number of orders Number of moves Direct labor hours Number of setups Number of inspections 8.000 100,000 1.250 6,000 Number of components Square feet occupied 168,000 90.000 Problems: Set A 17-43 e Hannon, sales manager, has received an order for 250 stairways anager, has received an order for 20 stairways from Community Builders Saevelopment contractor At Steve's guest, Rill prepares cost estimates for producing stairways so Steve can submit a contract price per stairway to Community Builders $112.000 Inc., a large housing development contra components for 250 stairways so Steve can sub He accumulates the following data for the production of 250 stairways S101.600 Direct materials Direct labor Machine hours 14,500 Direct labor hours 5.000 Number of purchase orders Number of material moves 100 Number of machine setups 450 Number of inspections Number of components 16,000 Number of square feet occupied 8,000 800 Inspections a Royale 54.035,000 b. Cost/unit-Royale 598140 r ating and ACC res Instructions & Assign the total 2032 manufacturing overhead costs to the two products using activity-based costing (ABC) and determine the overhead cost per unit What was the cost per unit and gross profit of each model using ABC7 c. Are management's future plans for the two models sound? Explain P17.1A (LO 1, 2), AN Writing Shaker Stairs Co designs and builds factory made premium wood Scars for homes. The manufactured stain oponents (spindles risers, hangers, hand rails) per alinstallation of stairways of varying lengths and with all are of white cak wood. Budgeted man facturing overhead costs for the year 2022 are as follows Overhead Cost Pools Amount $ 75,000 Handling materials 82.000 Production (cutting, milling, finishing) 210,000 Setting up machines 105,000 90,000 Inventory control (raw materials and finished goods) 126.000 180,000 Total budgeted overhead costs SN68,000 Purchasing Inspecting Utilities For the last 4 years. Shaker Stairs Co. has been charging overhead to products on the basis of ma chine hours. For the year 2022, 100.000 machine hours are budgeted. Jeremy Nolan, owner-manager of Shaker Stairs Co., recently directed his accountant, Bill Seagren, to implement the activity based costing system that he has repeatedly proposed. At Jeremy Nolan's request Bill and the production foreman identify the following cost drivers and their usage for the previously budgeted overhead cost pools. Estimated Use of Cost Drivers Activity Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Cost Drivers Number of orders Number of moves Direct labor hours Number of setups Number of inspections 8.000 100,000 1.250 6,000 Number of components Square feet occupied 168,000 90.000 Problems: Set A 17-43 e Hannon, sales manager, has received an order for 250 stairways anager, has received an order for 20 stairways from Community Builders Saevelopment contractor At Steve's guest, Rill prepares cost estimates for producing stairways so Steve can submit a contract price per stairway to Community Builders $112.000 Inc., a large housing development contra components for 250 stairways so Steve can sub He accumulates the following data for the production of 250 stairways S101.600 Direct materials Direct labor Machine hours 14,500 Direct labor hours 5.000 Number of purchase orders Number of material moves 100 Number of machine setups 450 Number of inspections Number of components 16,000 Number of square feet occupied 8,000 800
