Calculate the ABC costs for each product on a per-box basis.
Activity Data by Product Number of Ornaments Ornaments Machine Operations per Ornament Number of Batches Inspections Sq. Footage Per Box Product per Box per Box 4 Small colored glass Large colored glass Specialty ornaments 420,000 300,000 100,000 800 750 500 12 6 1 2 4 5 1 0.5 0.2 4 page 9 >> Q Page 8 Q Activity Data by Product ZAUNER ORNAMENTS Calculation of Product Costs: DM- and DL-Based Costing System Number of Ornaments DM & DL Machine Operations per Ornament Number of Batches Ornaments per Box Inspections per Box Sq. Footage Per Box Number of Ornaments Ornaments per Box Number of Boxes Total DM & DL Allocated Overhead Total Cost per Box Product Product per Box Total Cost $ 4 $ Small colored glass Large colored glass Specialty ornaments 420,000 300,000 100,000 800 750 500 12 6 1 1 2 Small colored glass Large colored glass Specialty ornaments 1 0.5 0.2 420,000 300,000 100,000 12 6 1 35,000 50,000 100,000 $ $ $ 4.00 5.00 7.00 140,000 250,000 700,000 $ $ $ 150,275 268,349 751,376 290,275 518,349 1,451,376 4 5 $ 8.29 $ 10.37 $ 14.51 4 820,000 185,000 $ 1,090,000 $ 1,170,000 $ 2,260,000 V page 11 1 page 7 Q Plant Data by Product Line ZAUNER ORNAMENTS Calculation of Product Costs: Volume-Based Costing System Small Colored Glass Ornaments Large Colored Glass Ornaments Specialty Ornaments Total Total Total Cost Ending inventory costs $26,100 $51,300 $12,600 $90,000 Ornaments per Box Number of Ornaments Number of Boxes Product DM & DL per Box Allocated Overhead DM & DL Total Cost per Box $ $ $ Plant personnel: Non-specialty Specialty (painting) N/A N/A N/A 24 98 24 Small colored glass Large colored glass Specialty ornaments 420,000 300,000 100,000 12 6 1 35,000 50,000 100,000 $ $ $ 4.00 5.00 7.00 140.000 250,000 700.000 599,268 428,049 142,683 739,268 678,049 842,683 $ $ $ 21.12 13.56 8.43 Number of customers 600 420 180 1,200 820,000 185,000 $ 1,090,000 $ 1,170,000 $ 2,260,000 Total direct labor costs $83,200 $93,600 $343,200 $520,000 % Plant capacity used N/A N/A N/A 70% Activity Data by Product Number of Ornaments Ornaments Machine Operations per Ornament Number of Batches Inspections Sq. Footage Per Box Product per Box per Box 4 Small colored glass Large colored glass Specialty ornaments 420,000 300,000 100,000 800 750 500 12 6 1 2 4 5 1 0.5 0.2 4 page 9 >> Q Page 8 Q Activity Data by Product ZAUNER ORNAMENTS Calculation of Product Costs: DM- and DL-Based Costing System Number of Ornaments DM & DL Machine Operations per Ornament Number of Batches Ornaments per Box Inspections per Box Sq. Footage Per Box Number of Ornaments Ornaments per Box Number of Boxes Total DM & DL Allocated Overhead Total Cost per Box Product Product per Box Total Cost $ 4 $ Small colored glass Large colored glass Specialty ornaments 420,000 300,000 100,000 800 750 500 12 6 1 1 2 Small colored glass Large colored glass Specialty ornaments 1 0.5 0.2 420,000 300,000 100,000 12 6 1 35,000 50,000 100,000 $ $ $ 4.00 5.00 7.00 140,000 250,000 700,000 $ $ $ 150,275 268,349 751,376 290,275 518,349 1,451,376 4 5 $ 8.29 $ 10.37 $ 14.51 4 820,000 185,000 $ 1,090,000 $ 1,170,000 $ 2,260,000 V page 11 1 page 7 Q Plant Data by Product Line ZAUNER ORNAMENTS Calculation of Product Costs: Volume-Based Costing System Small Colored Glass Ornaments Large Colored Glass Ornaments Specialty Ornaments Total Total Total Cost Ending inventory costs $26,100 $51,300 $12,600 $90,000 Ornaments per Box Number of Ornaments Number of Boxes Product DM & DL per Box Allocated Overhead DM & DL Total Cost per Box $ $ $ Plant personnel: Non-specialty Specialty (painting) N/A N/A N/A 24 98 24 Small colored glass Large colored glass Specialty ornaments 420,000 300,000 100,000 12 6 1 35,000 50,000 100,000 $ $ $ 4.00 5.00 7.00 140.000 250,000 700.000 599,268 428,049 142,683 739,268 678,049 842,683 $ $ $ 21.12 13.56 8.43 Number of customers 600 420 180 1,200 820,000 185,000 $ 1,090,000 $ 1,170,000 $ 2,260,000 Total direct labor costs $83,200 $93,600 $343,200 $520,000 % Plant capacity used N/A N/A N/A 70%
