Exercise 6 - Manufacturing Company makes 3 products: A, B, and C. Shown below are the estimated costs and estimated production data for next year. Cost Pools Overhead Cost Driver Customer Service $240,000 Customers Design $160,000 Modifications Storage $80,000 Square feet used Ordering & Receiving $40,000 Number of orders Packaging $120,000 Number of units Supervision $80,000 Number of employees Total Estimated overhead $720,000 Prod A Prod B Prod C Total Customers 60 100 40 200 Modifications 15 25 10 50 Square feet used 1,000 600 400 2,000 Number of orders 60 80 20 160 Number of units 6,000 4,000 2,000 12,000 Number of employees 3 1 1 Estimates By Product Prod A Prod B Prod C Total Sales $1,600,000 $1,520,000 $1,320,000 $4,440,000 Direct materials costs $640,000 $400,000 $320,000 $1,360,000 Direct labor costs $400,000 $480,000 $720,000 $1,600,000 Calculate ABC rates for each cost pool: a) Customer Service per customer X b) Design per modificaton X c) Storage per sq. ft. X d) Ordering & Receiving per order e) Packaging per unit X f) Supervision per employee Prod C Calculate the overhead assigned using ABC method: Prod A Prod B g) Customer Service h) Design i) Storage i) Ordering & Receiving k) Packaging 1) Supervision m) Total Overhead Assigned XXX XXX XXX XXX XXX XXX XXX Calculate total cost & net profit using ABC method: Prod C llate total cost & net pront using ABC method: Prod A Prod B n) Total Cost (DM+DL+MO) o) Net Profit XXX XXX per DL $ X p) Calculate single plant-wide overhead rate: (assume the overhead allocation base is direct labor) Calculate the following using the single plant-wide rate: Prod A Prod B Total Overhead Assigned r) Total Cost s) Net Profit Prod C XXX XXX XXX