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Calculate the Activity Based Costing Allocations for each product line and calculate your gross margins based on the ABC allocations. In addition to the calculations,
Calculate the Activity Based Costing Allocations for each product line and calculate your gross margins based on the ABC allocations. In addition to the calculations, your paper should include a discussion of what other possible drivers may be useful if you were able to get the appropriate information.
Exhibit 2 Additional Data Exhibit 6 \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline & \multicolumn{8}{|c|}{ Monthly Costs and Work Station Data } \\ \hline Workstations: & Coldrollandcut & Oven&drop-forge & Bore & Deburrandpolish & Assemble & Injectionmold & Package & Total \\ \hline Laborers & 2 & 2 & 2 & 1 & 1 & 1 & 1 & 10 \\ \hline Depreciation & 241.67 & 73333 & 125.00 & 75.00 & 1333 & 416.67 & 7.92 & $1,612.92 \\ \hline Variablepower & 235.15 & 481.33 & 161.47 & 71.21 & 28.24 & 4973 & 27.87 & $1,05500 \\ \hline Supplies & 117.16 & 9373 & 225.10 & 147.90 & 60.55 & 9.48 & 71.08 & $725.00 \\ \hline Percentageofsqfeet. & 12.5% & 30.0% & 10.0% & 7.5% & 10.0% & 20.0% & 10.0% & 100% \\ \hline & ofte & 8 anc & & 06 & building & ated to p & tion. & \\ \hline \end{tabular} Exhibit 4: Standard Labor and Machine Times Labor Minures pitons hammers rock nut sets 1 I 1 I Exhibit 5: Work Stations, Activity Drivers, and Use by Product * Pitons were packaged ten to a package for shipping to the distributor, who opened and repackaged them for customers. Hammers and rock nut sets were packaged in single units and one set per package, respectively. Exhibit 1Step by Step Solution
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