d. On the basis of the confusing results of parts b and c. Kallapur's manager decides to perform an activity analysis of fixed overhead The results of the analysis are as follows Activity Machine set-ups Purchase orders Machining Inspection Shipping to customers Total fixed overhead Costs $400,000 600.000 500,000 200,000 380,000 $2,000,000 Driver # of set-ups # of orders of machine-hours 3 of batches # of shipments Demands KAPI QUIN 100 400 200 100 2,000 6.000 50 30 300 200 d-1. Estimate the total manufacturing cost per unit of each product if activity based costing is used for assigning fixed overhead costs. d-2. Under this method, which product is earning the desired return? f-1. Kallapur's production manager believes that design changes would reduce the number of set-ups required for QUIN to 25. Fixed overhead costs for set-ups would remain unchanged What will be the impact of the design changes on the manufacturing costs of both products? f-2. Which of the products will earn the desired return? 9-1 . An alternative to the design change is to purchase a new machine that will reduce the number of set-ups for KAP1 to 20 and the number of set-ups for QUIN to 80. The machine will also reduce fixed set-up costs to $200,000. Calculate the manufacturing costs for each product if the machine is purchased 9-2. Should Kallapur purchase the new machine? Complete this question by entering your answers in the tabs below. d. On the basis of the confusing results of parts b and c. Kallapur's manager decides to perform an activity analysis of fixed overhead The results of the analysis are as follows Activity Machine set-ups Purchase orders Machining Inspection Shipping to customers Total fixed overhead Costs $400,000 600.000 500,000 200,000 380,000 $2,000,000 Driver # of set-ups # of orders of machine-hours 3 of batches # of shipments Demands KAPI QUIN 100 400 200 100 2,000 6.000 50 30 300 200 d-1. Estimate the total manufacturing cost per unit of each product if activity based costing is used for assigning fixed overhead costs. d-2. Under this method, which product is earning the desired return? f-1. Kallapur's production manager believes that design changes would reduce the number of set-ups required for QUIN to 25. Fixed overhead costs for set-ups would remain unchanged What will be the impact of the design changes on the manufacturing costs of both products? f-2. Which of the products will earn the desired return? 9-1 . An alternative to the design change is to purchase a new machine that will reduce the number of set-ups for KAP1 to 20 and the number of set-ups for QUIN to 80. The machine will also reduce fixed set-up costs to $200,000. Calculate the manufacturing costs for each product if the machine is purchased 9-2. Should Kallapur purchase the new machine? Complete this question by entering your answers in the tabs below
