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I am not sure what you need. This is the information that was given to me. The last two images are the complete assignment. The questions on the second page are what need to be answered. I do not have anything else.

Accounting 440 Project 2 - Activity Based Costing (F) Pool Base Machine setup and troubleshooting... Setup hours Material handling. Loads handled Materials administration.... Vendor orders Engineering design Design hours Machine operation and remaining overhead...... Machine hours Because of the large number of products manufac- tured at Warrenton, management has decided to focus initially on just two products: 33, which is rep- resentative of most of Warrenton's low-volume prod- ucts; and 44, a representative high-volume product The following information pertains to the most recent year's operation of the Warrenton Division. For brevity, details for products other than 33 and 44 are not shown, but the division's totals are given in the last column Craig Company's Wamelon Division manufactures a variety of products, includine Product 33 and Product 4. Recently, competitors have introduced new prod. ucts competing with Product 44 and with other high- volume Warrenton products at prices substantially lower than Warrenton's prices. To better understand its product costs, Warrenton Division changed its costing system at the beginning of the most recent year and is considering changing ik again Until the beginning of the most recent year, the Warrenton Division used a costing system that accu- mulated all overhead in a single cost pool and allo- cated it based on direct labor hours; this system was called the one-pool indirect cost system, or OPICS. Over a period of many years, the OPICS Overhead rate gradually had approached $100 per direct labor hour. Management came to believe that products were sim- ply being penalized for using direct labor, because engineers seemed to be going to wasteful lengths to redesign the direct labor out of products. The results of these design efforts included further increases in the overhead rate. In an attempt to remedy the situation, management implemented a three-pool Indirect cost system, or TPICS, at the beginning of the most recent year. TPICS allocates all machine-related overhead based on machine hours, all material-related overhead based on direct material cost, and all remaining overhead based on direct labor hours. Warrenton's controller states, "The logic of TPICS was a big improvement over OPICS, but it was really just a first step and we quickly realized it was not enough. We needed a careful study of cost pols and allocation bases to see if we could better capture the economics of producing both high- and low-volume products." The ensuing study revealed substantial costs related to setup activity, plus some material handling costs primarily related to the number of loads of material handled, and materials administration cost primarily related to the number of orders placed with vendors The study also revealed that engineers' troubleshoot- ing efforts primarily consisted of assisting with setups. To eliminate the penalty for using direct labor, machine hours was selected as the base for allocating costs that have an unclear relationship with output Based on these decisions, a new cost system was pro- posed, with the followng overhead cost pools and allocation bases: Tor Product 30 Total for Total for Warrenton $1,320,000 300.000 $1,620,000 wage diners among products $120.000 0.000 $100,000 6.000 $21.000 Director Machine person $ 200.000 140.000 $ 340,000 $ 13.000 195.000 $ 330,000 Enging Troshooting Design $100,000 One overhead Toad $380.000 $ 900,000 $1.200.000 2.000 Director hours 10.000 25.000 20,000 3.000 4,000 Setup hours Design hours Usualing price Competitor's price Required: (1) IF OPICS had been used in the most recent year, what would have been reported as the local and unit costs of the two products Use the format shown in Exhib 143. omitting the column for the total cost of the division (2) Using THCS, what are the real and unit costs of the two products Use the format shown in Exhibit 143. omitting the column for the total costs of the division 6) Does TPICS constitute an ABC system? Why or why noe (0 tising the peoposed new costing system, what are the tool and unit comes the products Use the 300 format shown inhibit 14-3. Omitting the column for the tal costs of the division 6) Does the proposed new costing system constitute an ABC system why or why noe compared to TPICS, what new insight is revealed by the proposed new system? (7) Make recommendations for Warrenton Division's management based on the results of the recent cost study and the results of requirement 6 In addition to pricing and product-line recommendations, include other options Warrenton should consider, and suggest how each posible action might be implemented Accounting 440 Project 2 - Activity Based Costing (F) Bave Pool Machines and troubleshooting Setup hours Material handing Loads handled Materiale administration Vendor orders Engineering design Design Houns Machine operation and remaining overhead... Machine hours Because of the large number of products manufac- tured at Warrenton, management has decided to focus initially c ut two products 33 which is rep- resentative of most of Wamento's low-volume peod ucts; and 44, a representative high-volume product The following information pertains to the most recent year's operation of the Warrenton Division. For brevity, details for products other than 33 and 44 are pot shown but the division's totals anven in the last column Craig Company's Wament Division manufactures a variety of products, including Product 33 and Product 4. Recently competitors have introduced new prod- ucts competing with Product 44 and with other high volume Warrenton products, at prices substantially lower than Warrenton's prices. To better understand is product costs, Warrenton Division changed is costing system at the beginning of the most recent year and is considering changing it again Until the beginning of the most recent year, the Warrenton Division used a costing system that accu- mulated all overhead in a single cost pool and allo- cated it based on direct labor hours, this system was called the one-pool Indirect cost system, or OPICS Over a period of many years, the OPICS Overhead rate gradually had approached $100 per direct laber hour Management came to believe that products were sim- ply being penalized for using direct labor, because engineers seemed to be going to wasteful lengths to redesign the direct labor out of products. The results of these design efforts included further increases in the overhead rate. In an attempt to remedy the situation, management implemented a three-pool Indirect cost system, or TPICS, at the beginning of the most recent year. TPICS allocates all machine-related overhead based on machine hours, all material-related overhead based on direct material cost, and all remaining overhead based on direct labor hours. Warrenton's controller states, "The logic of TPICS was a big improvement over OPICS, but it was really just a first step and we quickly realized it was not enough. We needed a careful study of cost pools and allocation bases to see if we could better capture the economics of producing both high- and low volume products The ensuing study revealed substantial costs related to setup activity, plus some material handling costs primarily related to the number of loads of material handled, and materials administration cost primarily related to the number of orders placed with vendors. The study also revealed that engineers' troubleshoot- ing efforts primarily consisted of assisting with setups. To eliminate the penalty for using direct labor, machine hours was selected as the base for allocating costs that have an unclear relationship with output. Based on these decisions, a new cost system was pro- posed, with the followng overhead cost pools and allocation bases: Teo Warrenton $110.000 Dem $120.000 To directo Overhead Machinerad Machine operation Machhe soup $ 200,000 $ 340,000 $135.000 $ 330,000 Material handling Material d istration To Engineering Troubleshooting Design $ 100,000 Total $ 300,000 $ 900.000 $1,030,000 Other overhead Total overhead 2,000 5.000 0.000 3.000 10.000 25.000 20,000 300 3.000 200 1450 Loads of material handled Vendor orders Direct labor hours. Machine hours Setup hours Design hours Usus selling price Competitor's price Required: (1) If OPICS had been used in the most recent year, what would have been reported as the total and unit costs of the two products? Use the format shown in Exhibit 14-3, omitting the column for the total costs of the division (2) Using THCS, what are the tool and unik costs of the two products Use the format shown in Exhib 143 Omitting the column for the local costs of the division (3) Does TPICS constitute an ABC system? Why or why noe ( Using the proposed new costing system, what are the tool and unit costs of the two products? Use the 4,000 $800 300 format shown in Exhibit 14-3, omitting the column for the total costs of the division (5) Does the proposed new costing system constitute an ABC system? Why or why no (6) Compared to TPICS, what new insight is revealed by the proposed new system? (7) Make recommendations for Warrenton Division's management based on the results of the recent Cost study and the results of requirement 6. In addition to pricing and product line recommendations, include other options Wamenton should consider, and suggest how each posible action might be implemented. Accounting 440 Project 2 - Activity Based Costing (F) Pool Base Machine setup and troubleshooting... Setup hours Material handling. Loads handled Materials administration.... Vendor orders Engineering design Design hours Machine operation and remaining overhead...... Machine hours Because of the large number of products manufac- tured at Warrenton, management has decided to focus initially on just two products: 33, which is rep- resentative of most of Warrenton's low-volume prod- ucts; and 44, a representative high-volume product The following information pertains to the most recent year's operation of the Warrenton Division. For brevity, details for products other than 33 and 44 are not shown, but the division's totals are given in the last column Craig Company's Wamelon Division manufactures a variety of products, includine Product 33 and Product 4. Recently, competitors have introduced new prod. ucts competing with Product 44 and with other high- volume Warrenton products at prices substantially lower than Warrenton's prices. To better understand its product costs, Warrenton Division changed its costing system at the beginning of the most recent year and is considering changing ik again Until the beginning of the most recent year, the Warrenton Division used a costing system that accu- mulated all overhead in a single cost pool and allo- cated it based on direct labor hours; this system was called the one-pool indirect cost system, or OPICS. Over a period of many years, the OPICS Overhead rate gradually had approached $100 per direct labor hour. Management came to believe that products were sim- ply being penalized for using direct labor, because engineers seemed to be going to wasteful lengths to redesign the direct labor out of products. The results of these design efforts included further increases in the overhead rate. In an attempt to remedy the situation, management implemented a three-pool Indirect cost system, or TPICS, at the beginning of the most recent year. TPICS allocates all machine-related overhead based on machine hours, all material-related overhead based on direct material cost, and all remaining overhead based on direct labor hours. Warrenton's controller states, "The logic of TPICS was a big improvement over OPICS, but it was really just a first step and we quickly realized it was not enough. We needed a careful study of cost pols and allocation bases to see if we could better capture the economics of producing both high- and low-volume products." The ensuing study revealed substantial costs related to setup activity, plus some material handling costs primarily related to the number of loads of material handled, and materials administration cost primarily related to the number of orders placed with vendors The study also revealed that engineers' troubleshoot- ing efforts primarily consisted of assisting with setups. To eliminate the penalty for using direct labor, machine hours was selected as the base for allocating costs that have an unclear relationship with output Based on these decisions, a new cost system was pro- posed, with the followng overhead cost pools and allocation bases: Tor Product 30 Total for Total for Warrenton $1,320,000 300.000 $1,620,000 wage diners among products $120.000 0.000 $100,000 6.000 $21.000 Director Machine person $ 200.000 140.000 $ 340,000 $ 13.000 195.000 $ 330,000 Enging Troshooting Design $100,000 One overhead Toad $380.000 $ 900,000 $1.200.000 2.000 Director hours 10.000 25.000 20,000 3.000 4,000 Setup hours Design hours Usualing price Competitor's price Required: (1) IF OPICS had been used in the most recent year, what would have been reported as the local and unit costs of the two products Use the format shown in Exhib 143. omitting the column for the total cost of the division (2) Using THCS, what are the real and unit costs of the two products Use the format shown in Exhibit 143. omitting the column for the total costs of the division 6) Does TPICS constitute an ABC system? Why or why noe (0 tising the peoposed new costing system, what are the tool and unit comes the products Use the 300 format shown inhibit 14-3. Omitting the column for the tal costs of the division 6) Does the proposed new costing system constitute an ABC system why or why noe compared to TPICS, what new insight is revealed by the proposed new system? (7) Make recommendations for Warrenton Division's management based on the results of the recent cost study and the results of requirement 6 In addition to pricing and product-line recommendations, include other options Warrenton should consider, and suggest how each posible action might be implemented Accounting 440 Project 2 - Activity Based Costing (F) Bave Pool Machines and troubleshooting Setup hours Material handing Loads handled Materiale administration Vendor orders Engineering design Design Houns Machine operation and remaining overhead... Machine hours Because of the large number of products manufac- tured at Warrenton, management has decided to focus initially c ut two products 33 which is rep- resentative of most of Wamento's low-volume peod ucts; and 44, a representative high-volume product The following information pertains to the most recent year's operation of the Warrenton Division. For brevity, details for products other than 33 and 44 are pot shown but the division's totals anven in the last column Craig Company's Wament Division manufactures a variety of products, including Product 33 and Product 4. Recently competitors have introduced new prod- ucts competing with Product 44 and with other high volume Warrenton products, at prices substantially lower than Warrenton's prices. To better understand is product costs, Warrenton Division changed is costing system at the beginning of the most recent year and is considering changing it again Until the beginning of the most recent year, the Warrenton Division used a costing system that accu- mulated all overhead in a single cost pool and allo- cated it based on direct labor hours, this system was called the one-pool Indirect cost system, or OPICS Over a period of many years, the OPICS Overhead rate gradually had approached $100 per direct laber hour Management came to believe that products were sim- ply being penalized for using direct labor, because engineers seemed to be going to wasteful lengths to redesign the direct labor out of products. The results of these design efforts included further increases in the overhead rate. In an attempt to remedy the situation, management implemented a three-pool Indirect cost system, or TPICS, at the beginning of the most recent year. TPICS allocates all machine-related overhead based on machine hours, all material-related overhead based on direct material cost, and all remaining overhead based on direct labor hours. Warrenton's controller states, "The logic of TPICS was a big improvement over OPICS, but it was really just a first step and we quickly realized it was not enough. We needed a careful study of cost pools and allocation bases to see if we could better capture the economics of producing both high- and low volume products The ensuing study revealed substantial costs related to setup activity, plus some material handling costs primarily related to the number of loads of material handled, and materials administration cost primarily related to the number of orders placed with vendors. The study also revealed that engineers' troubleshoot- ing efforts primarily consisted of assisting with setups. To eliminate the penalty for using direct labor, machine hours was selected as the base for allocating costs that have an unclear relationship with output. Based on these decisions, a new cost system was pro- posed, with the followng overhead cost pools and allocation bases: Teo Warrenton $110.000 Dem $120.000 To directo Overhead Machinerad Machine operation Machhe soup $ 200,000 $ 340,000 $135.000 $ 330,000 Material handling Material d istration To Engineering Troubleshooting Design $ 100,000 Total $ 300,000 $ 900.000 $1,030,000 Other overhead Total overhead 2,000 5.000 0.000 3.000 10.000 25.000 20,000 300 3.000 200 1450 Loads of material handled Vendor orders Direct labor hours. Machine hours Setup hours Design hours Usus selling price Competitor's price Required: (1) If OPICS had been used in the most recent year, what would have been reported as the total and unit costs of the two products? Use the format shown in Exhibit 14-3, omitting the column for the total costs of the division (2) Using THCS, what are the tool and unik costs of the two products Use the format shown in Exhib 143 Omitting the column for the local costs of the division (3) Does TPICS constitute an ABC system? Why or why noe ( Using the proposed new costing system, what are the tool and unit costs of the two products? Use the 4,000 $800 300 format shown in Exhibit 14-3, omitting the column for the total costs of the division (5) Does the proposed new costing system constitute an ABC system? Why or why no (6) Compared to TPICS, what new insight is revealed by the proposed new system? (7) Make recommendations for Warrenton Division's management based on the results of the recent Cost study and the results of requirement 6. In addition to pricing and product line recommendations, include other options Wamenton should consider, and suggest how each posible action might be implemented

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