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Clipboard IS Font Alignment Number E48 fx consumption rate A B D E 1 Quality Upholstery Company estimated the following costs and activities for its two products, stools and pads for 2018: 2 3 Cost Activity 4 Direct Materials $ 135,000 9,000 yards at $15 per yard 5 Direct Labor $ 102,000 5100 hours @ $20 per hour 6 Machine Setup $ 60,500 320 setup hours 7 Materials Handling $ 88,200 4200 loads of material moved 8 Electric Power $ 40,000 20000 kilowatt hours 9 10 Quality Upholstery applies overhead based on direct labor hours. 11 The following information pertains to the actual production of stolls and pads: 12 13 Stools Pads 14 Units produced 5,000 20,000 15 Direct Materials 75,000 $ 61,200 16 Direct Labor $ 40,000 $ 60,000 17 Machine Setup 30,240 $ 26,460 18 Materials Handling $ 20,500 $ 61,500 19 Electric Power $ 35,000 $ 4,140 20 Actual Direct Labor Hours 2,000 3,000 21 Setup Hours 160 140 22 Loads of Materials Moved 1,000 3,000 23 Kilowatt hours consumed 17,000 2,000 24 A A A AutoSave H Project Del & Search File Home Insert Draw Page Layout Formulas Data Rew View Help Arial 29 A 11 A IS Paste Hull $ % lili 132 Alignment Number E F Clipboard 15 Font E48 f consumption rate B D 27 A. What would be the POHR using direct labor hours 28 (60,500+88200+40,000)/5100= 1887005100 = $37 29 30 31 32 B. What would be the total cost of one stool using POHR? 33 direct materials 75000 34 direct labor $ 40,000.00 35 overhead (2000 x 37) $ 74,000.00 36 total cost $ 189,000.00 37 number of units produced $ 5,000.00 38 total cost of one stool $ 37.80 39 C. What would be the total cost of one pad using POHR? 40 direct materials $ 61,200.00 41 direct labor $ 60,000.00 42 overhead (3000x37) $111.000.00 43 total cost $ 232,200.00 44 number of units produced $ 20,000.00 45 total cost of one pad $ 11.61 46 47 D. What is the Consumption Rate per activity driver for ABC? 48 activity cost avctivity driver usage 49 machine setup 60500 320 50 materials handling 88200 4200 51 electric power 40000 20000 52 53 54 55 E. Will it pay to use ABC? Why or why not? 56 57 58 59 60 F. What would be the activity rates using ABC? 61 Sheet1 consumption rate 189.06 per set out 21 per load of material moved 2 per kilowatt hout H Type here to search o C Paste LD B U Hili 12:11 Clipboard Font Alignment E48 for consumption rate E A B 61 62 63 64 65 66 67 G. What would be the total cost of one stool using ABC? 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 H. What would be the total cost of one pad using ABC? 83 84 85 86 87 88 89 90 91 92 93 94 95 1. What kind of problem could using ABC solve for this company? Sheet1 Enter 3 Type here to search C
