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Cain Components manufactures and distributes various plumbing products used in homes and other buildings. Over time, the production staff has notion that products they considered
Cain Components manufactures and distributes various plumbing products used in homes and other buildings. Over time, the production staff has notion that products they considered easy to make wwe man to win considered reasonable, while products that seemed to take a lot of time were seling wel despre recent price increases. A sunner interes suggested that the cost system might be providing misleading formation The controller decided to a good summer project for the intem would be to develop in one self-contained area of the plant, antive cost system with which to compare the current system. The intern identified the following conlpools and her action with some plant personnel, appropriate cost drivers for each pool. There were Cost Podle Costa Alvy Drivers Receiving 3765000 Divers Madacturing 7,000,000 Machine Hours Machine le 820.000 Number of Shipping $ 1.050,000 na shipped In this particula, Cain produces too of its many products Standard and Deluxe. The following are data for production for the latest full of operations Products Standard Torecast costs $300.000 $210.000 To receber oss S760.000 $300.000 Tot machine hours 150.000 100.000 Tolaumber of TS 130 Tou pounds of a 25.000 12.500 Toldrech labor hour 5.000 3750 aber of produced and whipped 20.000 10.000 Required: . The current cost accounting system charges ved to products based on machine hours What unit product costs will be reported for the products current constam continues to be used? (Do nom round normelote calculations) Drea Overhead Toco Number of units Unito . The intemps en ABC ya using the couverted tow What unit product cate will be reported for the two products ABC temin ed? (Do not own termasuta culation Det Over Rece Manufacturing Machine Show Number of Un
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