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can you please do it on paper QUESTION ABC problem Company LSD LTD has 4 types of overhead. The four categories and expected costs for
can you please do it on paper
QUESTION ABC problem Company LSD LTD has 4 types of overhead. The four categories and expected costs for each category for next year are listed below Company LSD LTD Acticos Setups cost Inspection cost Maintenance cost Material Handling cost Actual overhead Cost $150,000 $90,000 $120.000 S 82.000 $30,000 Estimates for the proposed job job 23 are as follows Direct Materials $6,000 DL (1000 hours $10,000 Machine Hours maintenance costi 500 of material moves 12 of setups 5 of inspections 10 Units produced 240 The company has been asked to submit a bid for a proposed job. The plant manager thinks getting this job would result in new business in future years. Usually bids are based upon full manufacturing cost plus 30 In the past, full manufacturing cost has been calculated by locating overhead using volume based cost driver OLM. The plant manager has heard of a new way of applying overhead that uses cost pools and cost drivers Expected activity for the four activity based cost drivers that would be used are 15,000 4,600 Cost Drivers Machine Hours Material Moves Setups Quality Inspections Required: Part 1 3.500 5,000 Actual overhead Com $30,000 4 of 5 Estimates for the proposed oblib 23 are as follows Direct Material $6,000 DE (1000 hours) $10.000 Machine Hours maintenance cost 500 of material moves 12 of setups 5 of inspections 10 Units produced 240 The company has been asked to submit a bid for a proposed job. The plant manager thinks getting this job would result in new business in future years. Usually bids are based upon full manufacturing cost plus 30% In the past, full manufacturing cost has been calculated by allocating overhead using volume based cost driver. The plant manager has heard of a new way of applying overhead that uses colt pools and con drivers Expected activity for the four activity based cost drivers that would be used are: Cost Drivers Machine Moun 15.000 Material Moves 4,600 Setups 3,500 Quality inspections 5.000 Required Part 1 1. Calculate the predetermined rates using the Functional based costing 2. Determine the amount of overhead that would be applied to the proposed project if Functional based costing method is used 3. Determine the total cost of the proposed using ABC & Calculate the unit cost using FC What bid prior the companying to according to Fac policy? Part 2 1 Calculate the missing the activity based costing 2 Determine the amount of verhead that would be applied to the proposed project activity based drivers are used 3 Determine the color of the proponering ABC 4 Calodate the Step by Step Solution
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