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Hello, I have posted this question before but I had forgotten to provide other Information that was needed. So I am posting again. Tableau DA
Hello, I have posted this question before but I had forgotten to provide other Information that was needed. So I am posting again.
Tableau DA 4-3: Mini-Case, Computing and assigning costs using ABC LO P3 Chrom Co. manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Estimated Overhead Costs by Estimated Direct Labor Hours & Department Machine Hours by Department 150,000 hrs 125,000 hrs 100,000 hrs Finishing 75,000 hrs Assembly Total: $8,000,000 Assembly 50,000 hrs Assembly 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours Estimated Overhead Costs by Cost Driver & Expected Usage Activity by Activity Supervision Maintenance Supervision Total: $8,000,000 Maintenance Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. Estimated Overhead Costs by Department Finishing: 3,000,000 Assembly: 5,000,000 Estimated Direct Labor Hours & Machine Hours by Department Direct Labor Hours: Finishing: 25,000 hours Assembly: 100,000 Machine Hours: Finishing: 70,000 hours Assembly: 30,000 Estimated Overhead Costs by Activity: Supervision: 2,000,000 Maintenance: 6,000,000 Cost Driver & Expected Usage by Activity: SUPERVISION: 125000 direct labor costs MAINTENANCE: 100000 machine hours Tableau DA 4-3: Mini-Case, Assigning overhead costs and making decisions 2. Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 Compute the overhead cost per unit of each model using ABC. XL RD Activity Activity Usage Allocated cost Activity Usage Activity Rate Allocated cost MH $ $ Activity Rate 60 per MH 16 per DLH per MH MH DLH DLH per DLH Maintenance Supervision Totals Units produced Overhead cost per unit $ 0 $ 0 0 0 ( Required 2A Required 2B > Tableau DA 4-3: Mini-Case, Computing and assigning costs using ABC LO P3 Chrom Co. manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Estimated Overhead Costs by Estimated Direct Labor Hours & Department Machine Hours by Department 150,000 hrs 125,000 hrs 100,000 hrs Finishing 75,000 hrs Assembly Total: $8,000,000 Assembly 50,000 hrs Assembly 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours Estimated Overhead Costs by Cost Driver & Expected Usage Activity by Activity Supervision Maintenance Supervision Total: $8,000,000 Maintenance Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. Estimated Overhead Costs by Department Finishing: 3,000,000 Assembly: 5,000,000 Estimated Direct Labor Hours & Machine Hours by Department Direct Labor Hours: Finishing: 25,000 hours Assembly: 100,000 Machine Hours: Finishing: 70,000 hours Assembly: 30,000 Estimated Overhead Costs by Activity: Supervision: 2,000,000 Maintenance: 6,000,000 Cost Driver & Expected Usage by Activity: SUPERVISION: 125000 direct labor costs MAINTENANCE: 100000 machine hours Tableau DA 4-3: Mini-Case, Assigning overhead costs and making decisions 2. Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 Compute the overhead cost per unit of each model using ABC. XL RD Activity Activity Usage Allocated cost Activity Usage Activity Rate Allocated cost MH $ $ Activity Rate 60 per MH 16 per DLH per MH MH DLH DLH per DLH Maintenance Supervision Totals Units produced Overhead cost per unit $ 0 $ 0 0 0 ( Required 2A Required 2B >Step by Step Solution
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