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ers/pabit/Downloads/ACC1200/6_12_2022_Practical%20and%20Written%20Assignment%20(2).pdf + [ Page view A Read aloud T Add text Draw Highlight Erase Sony Manufacturing manufactures three models of Lawnmowers, Simple, Standard and Super.
ers/pabit/Downloads/ACC1200/6_12_2022_Practical%20and%20Written%20Assignment%20(2).pdf + [ Page view A Read aloud T Add text Draw Highlight Erase Sony Manufacturing manufactures three models of Lawnmowers, Simple, Standard and Super. The following details are provided for the year ended 31 December 2021. Simple Standard Super Annual sales (units) 20,000 1,000 10,000 Product costs: Raw material $10 $25 $42 Direct Labour 10(0.5 hrs@$20) 20 (1 hr @$20) 20 (1 hr @$20) Manufacturing overhead 85 170 170 Total product cost $ 105 $215 $232 Calculation of predetermined overhead rate: Manufacturing-overhead budget Depreciation, machinery $1,480,000 Maintenance, machinery 120,000 Depreciation, taxes, and insurance for factory 300,000 Engineering 350,000 ENG OL D USREQUIRED: 1. Compute the target prices for the three models, based on the traditional, volume-based product-costing system. 2. Compute new product costs for the three products, based on the new data collected by the controller. Round to the nearest dollar. 3. Calculate a new target price for the three products, based on the ABC system. Compare the new target price with the current actual selling price for the simple model lawnmower. 4. Interpret your calculations and present an analysis as to what has been happening as a result of the firm's traditional, volume-based product-costing system. 5. What strategic options does Sony Manufacturing have? What do you recommend and why? *THE END* ENG OLD US
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