Arial 10 General -AA 0A- 29 Wrap Text Merge & Center - Paste 8 TU $ . % Clipboard Font Alignment Numbe B3 The XYZ Company produces two of types widgets: standard and del D E F A B Problem #1: Activity Based Costing 1 2. 3 The XYZ Company produces two of types widgets: standard and deluxe. The current cost sytem applies OH on the basis of DL hours. Mangement is concerned about eroding profit margins on 4 the standard widgets. Information about the production process is presented below 5 6 standard deluxe total 7 8 quantity produced 990 8,650 9 selling price per widget $83.00 $225.00 $18.75 DM cost per widget 10 $42.60 11 DL cost per widget $10.00 $13.00 12 $19.00 DL cost per hour $23.00 13 total OH (fixed cost 5683,000 Problem #1 Problem s2 Problem . Red 5 e PO w Font Alignment Chipboard X B3 R The XYZ Company produces two of types widgets: standard ar D F E AA 14 (1) What is the gross profit per widget (per unit) using the current cost system? (4 points) 15 16 standard deluxe total 17 583.00 $225.00 price 18 DM $18.75 $42.60 19 DL $10.00 $13.00 20 OH 21 22 gross profit 23 gross margin 24 25 26 Problem 1 Problem Problem . x fo The XYZ Company produces two of types widgets: standard an A C E B F D (2) The president has asked you to do an ABC study to determine of the current accounting system understates the gross margin on standard widgets. You find the following information about 1 the OH costs in an ABC context. Complete the template below showing the full manufacturing 2 33 cost per widget under ABC (6 points) 34 cost cost category 35 cost driver production scheduling $194 000 # production runs 36 $288.000 facility lease 37 # square feet maintenance 5201,000 #machine hours 38 total 5683 000 39 40 Problem #1 Problem Problem Ready le . Chipboard Font Alignment B3 fo The XYZ Company produces two of types widgets: standard an A B E D cost driver quantity 41 cost category standard deluxe 42 production scheduling 40 110 43 3,300 facility lease 44 6,200 maintenance 2,850 1,965 45 total 6,190 8,275 46 47 standard deluxe total 48 price $83.00 49 $225.00 DM $18.75 60 $42.60 DL $10.00 $13.00 51 52 production scheduling OH 53 facility lease OH Problem 1 Problem Problem Read P 10 A Arial Paste Merge & Center a. A BIU N Font Alignment Clipboard X B3 The XYZ Company produces two of types widgets: standard and E F D B 4. standard deluxe total 48 $83.00 $225,00 49 price DM $18.75 $42.60 50 DL $10.00 $13.00 51 production scheduling OH 52 53 facility lease OH machine maintenance OH 54 gross profit 55 gross margin 56 57 58 (3). What will be the overall gross margin (both product lines) if the number of production runs for the 59 deluxe widgets is changed to 757 (2 points) gross margin 60 Problem 11 Problem 2 Problem PO un V
