For part 2: total cost pf light,power=$2,855(exhibit1), variable power=1,055 (exhibit 6). remaining heat/light/power labeled as lightning allocated=1,800(2855-1055)

1.) Tenalpina had been using a traditional system, where manufacturing overhead was allocated to each product based on direct labor time. The direct materials rates for each product are given in Exhibit 1. Calculate a direct labor rate based on DL cost (Exhibit 1), production levels (Exhibit 1), and labor requirements (Exhibit 4). Calculate an MOH rate using direct labor time is the allocation base. Using this system, what is the per unit cost to produce a piton, hammer, and rock nut set? Hint - if you do this correctly, you should be able to calculate the margins on page 3. Tenalpina is proposing an ABC costing system, where each work station is a cost pool. Their approach is slightly different than ABC systems we have seen, in that they allocate direct labor to work stations, instead of tracing it to products. Assign the appropriate amount of each overhead cost to each work station. Note- variable power, supplies, and depreciation have been done for you (Exhibit 6) Cold roll Oven Bore Deburr Assemble Injection Package TOTAL DL Variable Power Supplies Depreciation Lighting Occupancy Supervision TOTAL Exhibit 1 Monthly Income Statement for January Sales % of sales Product Pitons Hammers Rock nut sets Sales Volume 4,200 400 2300 Price/unit $ 10.50 $ 61.00 $ 24.50 Revenue $44,100.00 $24,400.00 $56,350.00 Total $124,850.00 100% Cost of Goods Sold Materials Product Pitons Hammers Rock nut sets Total DM Production volume 4200 400 2300 Cost/unit $ 1.45 $ 10.44 $ 6.01 Total DM $6,090.00 $4,176.00 $13,823.00 $24,089.00 19.3% $47,916.67 38.4% Direct Labor Manufacturing Overhead Light, Heat, and Power Supplies Depreciation Manufacturing occupancy Supervision Total manufacturing overhead Cost of Goods Sold $2,855.00 $725.00 $1,612.92 $2,200.00 $5,270.83 $12,603-75 $84,669.42 67.8% Gross Margin $40,180.58 32.2% S, G, and A Expense Office salaries General administration Administrative occupancy Shipping and delivery $ 10,541.67 $ 600.00 $ 550.00 $ 745.00 Operating Income for the Month $12,436.67 $27,743.91 10% 22% xhibit 2 Additional Data $63,250 per year $63,250 per year $63,250 per year $57,500 per year $33,000 per year Guilia's annual salary Jeremy's annual salary Granby's annual salary Annual labor payroll per head Total annual building occupancy cost Office occupies 20% of building Delivery costs per hammer per rock nut set Variable power per piton Variable power per hammer Variable power per rock nut set Supplies per piton Supplies per hammer Supplies per rock nut set $1.00 $0.15 $0.18 $0.46 $0.05 $0.11 $0.14 $0.09 Exhibit 4: Standard Labor and Machine Times Oven & drop- forge Work Stations Deburr and Bore polish Assemble Injection mold Package Total Cold roll and cut Labor Minutes pitons hammers 2.35 rock nut sets 0.03 0.371 2.6 0.4 1.6 1.7 0.2 0.35 Machine Minutes pitons U 0.8 hammers L 2 rock nut sets 0.3 2.25 0.3 1.5 0.1 0.25 Exhibit 5: Work Stations, Activity Drivers, and Use by Product Oven & drop- forge Deburr and polish Injection mold Work stations: pitons hammers rock nut sets Cold roll and cut Yes Yes Assemble No Bore Yes Yes Package Yes Yes Yes No Yes Yes Yes No Yes No No Yes NO Yes No Yes Activity Driver Hammer Holes Edges in blows bored | cm Clamp crimps Roll cuts Injections Packages Activity counts: pitons hammers rock nut sets Exhibit 6 Oven Work stations: Monthly Costs and Work Station Data Deburt Bore and Assemble Injection Package mold polish Cold Troll and cut 2 drop- Total forge Laborers 2 1 1 10 Depreciation Variable power Supplies 241.67 733.33 235.15 481.33 117.16 | 93.73 125.00 | 161.47 | 75.00 71.21 13-33 28.24 60.55 416.67 49.73 9.48 7.92 $1,612.92 27.87 $1,055.0 71.08 $725.00 225.10 147.90 Percentage of sq feet 12.5% 30.0% 10.0% 7.5% 10.0% 20.0% 10.0% 100% Note: Sq feet % are related to the 80% of the building dedicated to production, 1.) Tenalpina had been using a traditional system, where manufacturing overhead was allocated to each product based on direct labor time. The direct materials rates for each product are given in Exhibit 1. Calculate a direct labor rate based on DL cost (Exhibit 1), production levels (Exhibit 1), and labor requirements (Exhibit 4). Calculate an MOH rate using direct labor time is the allocation base. Using this system, what is the per unit cost to produce a piton, hammer, and rock nut set? Hint - if you do this correctly, you should be able to calculate the margins on page 3. Tenalpina is proposing an ABC costing system, where each work station is a cost pool. Their approach is slightly different than ABC systems we have seen, in that they allocate direct labor to work stations, instead of tracing it to products. Assign the appropriate amount of each overhead cost to each work station. Note- variable power, supplies, and depreciation have been done for you (Exhibit 6) Cold roll Oven Bore Deburr Assemble Injection Package TOTAL DL Variable Power Supplies Depreciation Lighting Occupancy Supervision TOTAL Exhibit 1 Monthly Income Statement for January Sales % of sales Product Pitons Hammers Rock nut sets Sales Volume 4,200 400 2300 Price/unit $ 10.50 $ 61.00 $ 24.50 Revenue $44,100.00 $24,400.00 $56,350.00 Total $124,850.00 100% Cost of Goods Sold Materials Product Pitons Hammers Rock nut sets Total DM Production volume 4200 400 2300 Cost/unit $ 1.45 $ 10.44 $ 6.01 Total DM $6,090.00 $4,176.00 $13,823.00 $24,089.00 19.3% $47,916.67 38.4% Direct Labor Manufacturing Overhead Light, Heat, and Power Supplies Depreciation Manufacturing occupancy Supervision Total manufacturing overhead Cost of Goods Sold $2,855.00 $725.00 $1,612.92 $2,200.00 $5,270.83 $12,603-75 $84,669.42 67.8% Gross Margin $40,180.58 32.2% S, G, and A Expense Office salaries General administration Administrative occupancy Shipping and delivery $ 10,541.67 $ 600.00 $ 550.00 $ 745.00 Operating Income for the Month $12,436.67 $27,743.91 10% 22% xhibit 2 Additional Data $63,250 per year $63,250 per year $63,250 per year $57,500 per year $33,000 per year Guilia's annual salary Jeremy's annual salary Granby's annual salary Annual labor payroll per head Total annual building occupancy cost Office occupies 20% of building Delivery costs per hammer per rock nut set Variable power per piton Variable power per hammer Variable power per rock nut set Supplies per piton Supplies per hammer Supplies per rock nut set $1.00 $0.15 $0.18 $0.46 $0.05 $0.11 $0.14 $0.09 Exhibit 4: Standard Labor and Machine Times Oven & drop- forge Work Stations Deburr and Bore polish Assemble Injection mold Package Total Cold roll and cut Labor Minutes pitons hammers 2.35 rock nut sets 0.03 0.371 2.6 0.4 1.6 1.7 0.2 0.35 Machine Minutes pitons U 0.8 hammers L 2 rock nut sets 0.3 2.25 0.3 1.5 0.1 0.25 Exhibit 5: Work Stations, Activity Drivers, and Use by Product Oven & drop- forge Deburr and polish Injection mold Work stations: pitons hammers rock nut sets Cold roll and cut Yes Yes Assemble No Bore Yes Yes Package Yes Yes Yes No Yes Yes Yes No Yes No No Yes NO Yes No Yes Activity Driver Hammer Holes Edges in blows bored | cm Clamp crimps Roll cuts Injections Packages Activity counts: pitons hammers rock nut sets Exhibit 6 Oven Work stations: Monthly Costs and Work Station Data Deburt Bore and Assemble Injection Package mold polish Cold Troll and cut 2 drop- Total forge Laborers 2 1 1 10 Depreciation Variable power Supplies 241.67 733.33 235.15 481.33 117.16 | 93.73 125.00 | 161.47 | 75.00 71.21 13-33 28.24 60.55 416.67 49.73 9.48 7.92 $1,612.92 27.87 $1,055.0 71.08 $725.00 225.10 147.90 Percentage of sq feet 12.5% 30.0% 10.0% 7.5% 10.0% 20.0% 10.0% 100% Note: Sq feet % are related to the 80% of the building dedicated to production