For part 2e and 2f how did you get the following answers to compute. I am lost on how to get the cost to add up
Exhibit 1 Estimated Activity and Used Activity and Capacity Costs Current capacity and usage (annual) Additional Required Computations Activity (Resource) Design/Drafting Engineering Fabrication Powder coating Scheduling General factory Estimated Cost Driver Activity (Practical Capacity) 20,000 15,000 40,000 400,000 750 80,000 Estimated Overhead Costs (Purchased Cost Cost Driver of Capacity) design hours $ 500,000 engineering hr $ 750,000 parts $ 30,000 square feet $ 1,800,000 job setups $ 756,000 machine hrs $ 2,400,000 Used Capacity 19,500 14,750 39,000 210,000 640 64,000 number of employees 10 $ 500.00 6 $ 250.00 40 $ 1,000.00 $ 190,000.00 3 $ 110.00 $ 16,000.00 Exhibit 2 Resource needs for potential new products Pool shade Cost Driver requirements Trellis requirements Trellis Both 60 30 20 4 Activity (Resource) Design/Drafting Engineering Fabrication Powder coating Scheduling General factory 2 22 Pool Shade 120 3,600 480 4,800 192,000 120 9,600 design hours engineering hrs parts (per demand) square feet (per demand) job setups (per demand) machine hrs (per demand) 40 1,200 120 1,320 10,200 60 4,800 multiply 120x30 600 same multiply by req a 6,120 202,200 180 10,200 1600 170 1 1 80 10 600 Pool shade Price per unit Material cost per unit 42,500 18,750 Trellis 4,300 700 CHANDLER CORP. Chandler Corp. template 2a) Compute the Predetermined Overhead Rate ABC - Practical Capacity Cost Label a diveded by B Activity (Resource) Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs $ $ $ $ Estimated Cost Driver Activity (Practical Capacity) 500,000 $ 20,000 750,000 15,000 30,000 40,000 1,800,000 400,000 756,000 750 2,400,000 80,000 Cost Driver Unit (eg.) design hrs engineering hrs parts square feet job setups machine hrs Predetermined Overhead Rate (Activity Rate) 25.00 50.00 0.75 4.5 1,008.00 30 /des.hr /eng.hr /part /sq.ft. / set up /mach hr $ 2b) Compute the cost of unused capacity Cost of Unused Capacity Total Cost of Unused Capacity 12,500 12,500 Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory Total cost of unused capacity Estimated Cost Driver Activity (Practical Capacity) $ 20,000 15,000 40,000 400,000 750 80,000 Used Capacity 19,500 14,750 39,000 210,000 640 64,000 Unused Capacity 500 250 1,000 190,000 110 16,000 Activity Rate 25.00 50.00 0.75 4.5 1,008.00 30 Label /des.hr /eng.hr /part /sq.ft. / set up /mach hr 750 855,000 110,880 480,000 2c) Compute the TOTAL and UNIT cost of making the full demand of pool shades assuming that Chandler bases its rates on the predetermind overhead rate. ABC - Practical Capacity Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Pool Shade Activity Rate 25.00 50.00 0.75 4.5 1,008.00 30 18,750.00 Label /des.hr /eng.hr /part /sq.ft. /set up /mach hr /unit Total Pool Shade Requirement 3,600 480 4,800 192,000 120 9,600 120 Total Cost for Pool Shades 90,000 24,000 3,600 864,000 120,960 288,000 2,250,000 3,640,560 120 30,338 d) Compute the TOTAL and UNIT cost of making the full demand of trellis assuming that Chandler bases its rates on the predetermind overhead rate. ABC - Practical Capacity Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Trellis Activity Rate 25.00 50.00 0.75 4.5 1,008.00 30 700.00 Label /des.hr /eng.hr /part /sq.ft. /set up /mach hr /unit Total Trellis Requirement 1,200 120 1,320 10,200 60 600 60 Total Cost for Trellises 30,000 6,000 990 45,900 60,480 18,000 42,000 203,370 60 3,390 Compute the total and unit cost of making the full demand of pool shades assuming that Chandler bases its rates on expected capacity (used capacity plus required capacity for the full demand of pool shades). ABC-Expected Capacity Total Cost for Pool Shades Current cost of Resource Expected Capacity Activity Rate Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Pool Shade Label /des.hr /eng.hr /part /sq.ft. /set up /mach hr /unit Total Pool Shade Requirement 3,600 480 4,800 192,000 120 9,600 120 2f) Compute the total and unit cost of making the full demand of trellises assuming that Chandler bases its rates on expected capacity (used capacity plus required capacity for the full demand of trellises). ABC - Expected Capacity Total Trellis Requirement Total Cost for Trellises Current cost of Resource Expected Capacity Activity Rate Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material Label /des.hr /eng.hr /part /sq.ft. set up /mach hr /unit Exhibit 1 Estimated Activity and Used Activity and Capacity Costs Current capacity and usage (annual) Additional Required Computations Activity (Resource) Design/Drafting Engineering Fabrication Powder coating Scheduling General factory Estimated Cost Driver Activity (Practical Capacity) 20,000 15,000 40,000 400,000 750 80,000 Estimated Overhead Costs (Purchased Cost Cost Driver of Capacity) design hours $ 500,000 engineering hr $ 750,000 parts $ 30,000 square feet $ 1,800,000 job setups $ 756,000 machine hrs $ 2,400,000 Used Capacity 19,500 14,750 39,000 210,000 640 64,000 number of employees 10 $ 500.00 6 $ 250.00 40 $ 1,000.00 $ 190,000.00 3 $ 110.00 $ 16,000.00 Exhibit 2 Resource needs for potential new products Pool shade Cost Driver requirements Trellis requirements Trellis Both 60 30 20 4 Activity (Resource) Design/Drafting Engineering Fabrication Powder coating Scheduling General factory 2 22 Pool Shade 120 3,600 480 4,800 192,000 120 9,600 design hours engineering hrs parts (per demand) square feet (per demand) job setups (per demand) machine hrs (per demand) 40 1,200 120 1,320 10,200 60 4,800 multiply 120x30 600 same multiply by req a 6,120 202,200 180 10,200 1600 170 1 1 80 10 600 Pool shade Price per unit Material cost per unit 42,500 18,750 Trellis 4,300 700 CHANDLER CORP. Chandler Corp. template 2a) Compute the Predetermined Overhead Rate ABC - Practical Capacity Cost Label a diveded by B Activity (Resource) Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs $ $ $ $ Estimated Cost Driver Activity (Practical Capacity) 500,000 $ 20,000 750,000 15,000 30,000 40,000 1,800,000 400,000 756,000 750 2,400,000 80,000 Cost Driver Unit (eg.) design hrs engineering hrs parts square feet job setups machine hrs Predetermined Overhead Rate (Activity Rate) 25.00 50.00 0.75 4.5 1,008.00 30 /des.hr /eng.hr /part /sq.ft. / set up /mach hr $ 2b) Compute the cost of unused capacity Cost of Unused Capacity Total Cost of Unused Capacity 12,500 12,500 Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory Total cost of unused capacity Estimated Cost Driver Activity (Practical Capacity) $ 20,000 15,000 40,000 400,000 750 80,000 Used Capacity 19,500 14,750 39,000 210,000 640 64,000 Unused Capacity 500 250 1,000 190,000 110 16,000 Activity Rate 25.00 50.00 0.75 4.5 1,008.00 30 Label /des.hr /eng.hr /part /sq.ft. / set up /mach hr 750 855,000 110,880 480,000 2c) Compute the TOTAL and UNIT cost of making the full demand of pool shades assuming that Chandler bases its rates on the predetermind overhead rate. ABC - Practical Capacity Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Pool Shade Activity Rate 25.00 50.00 0.75 4.5 1,008.00 30 18,750.00 Label /des.hr /eng.hr /part /sq.ft. /set up /mach hr /unit Total Pool Shade Requirement 3,600 480 4,800 192,000 120 9,600 120 Total Cost for Pool Shades 90,000 24,000 3,600 864,000 120,960 288,000 2,250,000 3,640,560 120 30,338 d) Compute the TOTAL and UNIT cost of making the full demand of trellis assuming that Chandler bases its rates on the predetermind overhead rate. ABC - Practical Capacity Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Trellis Activity Rate 25.00 50.00 0.75 4.5 1,008.00 30 700.00 Label /des.hr /eng.hr /part /sq.ft. /set up /mach hr /unit Total Trellis Requirement 1,200 120 1,320 10,200 60 600 60 Total Cost for Trellises 30,000 6,000 990 45,900 60,480 18,000 42,000 203,370 60 3,390 Compute the total and unit cost of making the full demand of pool shades assuming that Chandler bases its rates on expected capacity (used capacity plus required capacity for the full demand of pool shades). ABC-Expected Capacity Total Cost for Pool Shades Current cost of Resource Expected Capacity Activity Rate Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material TOTAL Cost Number of units UNIT cost for a Pool Shade Label /des.hr /eng.hr /part /sq.ft. /set up /mach hr /unit Total Pool Shade Requirement 3,600 480 4,800 192,000 120 9,600 120 2f) Compute the total and unit cost of making the full demand of trellises assuming that Chandler bases its rates on expected capacity (used capacity plus required capacity for the full demand of trellises). ABC - Expected Capacity Total Trellis Requirement Total Cost for Trellises Current cost of Resource Expected Capacity Activity Rate Activity Design/Drafting Engineering Fabrication Powder coating Scheduling General factory costs Material Label /des.hr /eng.hr /part /sq.ft. set up /mach hr /unit
