DATA FOR GRAPHS:
1) Est. Overhead costs by Department
a) Finishing: $3,000,000
b) assembly: $5,000,000
2)Estimated Direct Labor Hours & Machine Hours by Department
a) Direct labor hours: Finishing=25,000 hr , Assembly=100,000 hr
b) Machine hours: finishing =30,000 hr , assembly = 70,000 hr
3) Est. Overhead costs by activity
a) supervision : $2,000,000
b) maintenace : $6,000,000
Cost Driver & Exp. Usage by Activity
a) Supervison: 125,000 direct labor hours
b) Maintance: 100,000 machine hours
:
Chrom Co. manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Estimated Overhead Costs by Department Estimated Direct Labor Hours & Machine Hours by Department 150,000 hrs 125,000 hrs 100,000 hrs Finishing Assembly 75,000 hrs Total: Assembly $8,000,000 50,000 hrs Assembly 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours Cost Driver & Expected Usage by Activity Estimated Overhead Costs by Activity Supervision Maintenance Supervision Total: $8,000,000 Maintenance Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. 2. The company's XL model requires 2 direct labor hours and 1 machine hour. The RD model requires 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 3 Required 2A Required 2B Compute the overhead cost per unit of each model using ABC. XL RD Overhead Overhead Activity Activity Driver Incurred Activity Rate Activity Driver Incurred Assigned Assigned Maintenance per MH Supervision DLH DLH per DLH Overhead Cost Per Unit Required 2A Required 2B Required 3 a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Which overhead cost allocation method would the XL production manager prefer? . Which overhead cost allocation method would the RD production manager prefer? b. Chrom Co. manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Estimated Overhead Costs by Department Estimated Direct Labor Hours & Machine Hours by Department 150,000 hrs 125,000 hrs 100,000 hrs Finishing Assembly 75,000 hrs Total: Assembly $8,000,000 50,000 hrs Assembly 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours Cost Driver & Expected Usage by Activity Estimated Overhead Costs by Activity Supervision Maintenance Supervision Total: $8,000,000 Maintenance Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. 2. The company's XL model requires 2 direct labor hours and 1 machine hour. The RD model requires 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 3 Required 2A Required 2B Compute the overhead cost per unit of each model using ABC. XL RD Overhead Overhead Activity Activity Driver Incurred Activity Rate Activity Driver Incurred Assigned Assigned Maintenance per MH Supervision DLH DLH per DLH Overhead Cost Per Unit Required 2A Required 2B Required 3 a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Which overhead cost allocation method would the XL production manager prefer? . Which overhead cost allocation method would the RD production manager prefer? b
