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How to calculate the cost of deluxe boxes( column G) and also how column i will match with column b Question 1 LGI's production managers
How to calculate the cost of deluxe boxes( column G) and also how column i will match with column b
Question 1 LGI's production managers recently attended a course at UMGC where they learned about ABC costing. They propose allocating the total fixed costs between Standard and Deluxe boxes based on this method . They collected information about the cost drivers and the break up of the total costs in Table 1 below. How much overhead would be allocated to Standard and Deluxe Boxes ( in total and per unit) using this method? Show all supporting calculations. Complete the grey Table 1 Total Cost Check Manufacturing Cost of Deluxe Cost of Deluxe $ Amount Cost driver Standard Box Deluxe Box Totals of Drivers (must agree to overhead Boxes Boxes Column 87:814) Depreciation $47.00 Square feet 7,000 80,000 Maintenance $50.00 Direct Labour Hours 1,000 9,000 Purchase order Number of $9 500 4,500 processing purchases orders Inspection $34 Number of 1,000 6000 employees Indirect Materials $5.00 Labour Hours 1,000.00 9,000.00 Supervision $7.00 #of inspections 200 800 Supplies $4.00 Units manufactured 1,000.00 9,000.00 Total Allocated costs $156.00 Number of boxes per 108 18 year Allocated Cost per BOX Question 1 Deluxe Boxes Deluxe Boxes Total Sales Less: Variable Costs Contribution Less: Fixed Costs Profit Profit %Step by Step Solution
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