Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribedimage text in transcribed

image text in transcribedimage text in transcribed

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 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Auditing And Forensic Accounting

Authors: Tommie W Singleton, Aaron J Singleton, G Jack Bologna, Robert J Lindquist

4th Edition

ISBN: 047056413X, 9780470564134

More Books

Students also viewed these Accounting questions

Question

16. How do we denote power? (a) a (b) b (c) 1 - a (d) 1 - b

Answered: 1 week ago