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eBook TDABC Bob Randall, cost accounting manager for Hemple Products, was asked to determine the costs of the activities performed within the company's Manufacturing Engineering

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eBook TDABC Bob Randall, cost accounting manager for Hemple Products, was asked to determine the costs of the activities performed within the company's Manufacturing Engineering Department. The department has the following activities: creating bills of materials (B0Ms), studying manufacturing capabilities, improving manufacturing processes, training employees, and designing tools. The resource costs (from the general ledger) and the times to perform one unit of each Unit Time 0.4 hr Equipment 108,000 signing tooks Supplies Total 2.5 hrs No. of tool designs 25,000 Improving processes $520,000 Training employees Studying capabilities Total machine and labor hours (at practical capacity) 0.9 hrs. 1.8 hrs. 1.8 hrs. Study hours 2,000 Engineering hours 18,000 Total hours The activity, designing tools, uses the number of tools designed as the activity driver. using a traditional approach the cont of the designing tools activity 151) had a demand for 10 and 20 new tools, respectively was determined to be $183,000 with an expected activity output of 1,000 for the coming year, During the first week of the year, two jobs (Oob 150 and Job 247 PM 4/16/2013 1. Calculate the capacity cost rate for the M Creating BOMs Designing tools per tool design Studying capabilities Job 150 ob 151 TDABC 4. Now suppose that time for creating BOMs is 0.4 for a standard product but that creating a BOM for a custom product adds an additional 0.2 hour. Express 247 PM eBook or 2. Using the capadty cost rate, determine the activity rates for each activity. Round your answers to the nearest cent Creating BOMS per BOM Designing tools per tool design Training employees per training session Studying capabilitiesper study hour 3. Calculate the cost of designing tools that would be assigned to each job using the TDABC-derived activity rate and then repeat ysing the traditional ABC rate. Job 150 Job 151 TDABC 4. Now Suppose that time for creating BOMs is 0.4 for a standard product but that creating a BOM for a custom product adds an additional 0.2 hour. Express the time equation for this added complexity. Round your answers to two decimal places. Place the amounts left to right, lowest to highest. BOM time Calculate the activity rate for the activity of creating a BOM for custom products. Round your answer to the nearest cent. per BOM 248 PM 6279 Ef

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