I am working on an ABC problem. not even sure where to start? I have attached a spread sheet with the problems on it. It's number #4. Not even sure where to begin?

Thanks, Dan

Exercise 4-30 Levels of costs Baldacci Inc. has a casting machine that is used for three of the company's products. Each machine setup costs $20,445, and the machine was set up in June for six different production runs. The following information shows the units of output from each of the setups. Product Setup 1 #453 22,800 #529 2 15,200 27,900 5 6 Total cost 20,445 840 20,445 15,200 20,445 27,900 20,445 60 20,445 17,800 20,445 84,600 84,600 122,670 61,335 60 17,800 68,500 15,200 900 Set up cost 22,800 840 3 4 total production #663 If total machine setup cost is allocated to all units of product, what is the setup cost per unit? Round a your answer to the nearest cent. What is the total setup cost for Products #453, 529, and 663 during June? b If machine setup cost is allocated to each type of product made, what is the setup cost per unit of Products #453, 529, and 663 and the total cost of those products during June? Round your answers to the nearest cent. Product #453 0.90 Product #529 1.35 Product #663 45.43 If Baldacci Inc. had manufactured all similar products in a single production c run, how would unit and total costs have changed during June? Round your answers to the nearest cent if rounding is required. Total setup cost 1.45 0.73 $1.45 122,670 Product #453 68,500.00 Product #529 15,200.00 Product #663 900.00 Item 1 $ Item 2 $ per unit Item 3 $ per unit Item 4 $ per unit Item 5 $ $ $ $ Item 6 Item 7 Item 8 Item 9 # Cost per batch # batchs cost assign # produced 453 20,445.00 3 68,500.00 0.90 68,500.00 529 20,445.00 1 15,200.00 1.35 15,200.00 663 20,445.00 2 900.00 45.43 900.00 84,600.00 47.67 61,335.00 # # product # product cost per batch cost assign # produced # produced 453 68,500.00 61,335.00 0.90 68,500.00 529 15,200.00 61,335.00 0.25 15,200.00 3766.85416 663 61,335.00 0.01 900.00 13.2061629 1.16 65115.0603 900.00 84,600.00 61335 To get the total setup cost in this situation, you would take the machine setup cost and multiply it by the new number of setups determined by the number of different products. Then allocate one third of the cost (the machine setup cost for each run) and divide it by the number of units produced, respectively, for each product. Exercise 4-35 ABC Bernacke Corp. is instituting an activity-based costing project in its tenperson purchasing department. Annual departmental overhead costs are $731,250. Because finding the best supplier takes the majority of effort in the department, most of the costs are allocated to this activity area. Many purchase orders are received in a single shipment. Actitiy Find suppliers Purchase orders Review reports Allocation measure 25 50 35 110 Qualitity 75,000 46,875 28,125 150,000 Total Cost 375,000 187,500 168,750 356,250.00 Activity/ unit 5.00 4.00 6.00 2.38 125.00 200.00 210.00 535.00 One special-order product manufactured by the company required the following purchasing department activities: 25 telephone calls, 50 purchase orders, and 35 receipts. What amount of purchasing department cost should be assigned to this a product? b If 100 units of the product are manufactured during the year, what is the purchasing department cost per unit? Round your answer to the nearest cent. If purchasing department costs had been allocated using telephone calls as the allocation base, how much cost would have been assigned to this c product? Round your answer to the nearest cent. $535 $5.35 550/535/125 Item 1 $ per unit Item 2 $ Item 3 Allocation measure Qualitity Actitiy Find suppliers 25 75,000 Purchase orders 50 46,875 Review reports 35 28,125 110 150,000 Total Cost 375,000 187,500 168,750 356,250.00 Activity/ unit 5.00 4.00 6.00 2.38 125.00 200.00 210.00 535.00 Problem 4-45 ABC Outdoor Texas makes umbrellas, gazebos, and chaise lounges. The company uses a traditional overhead allocation scheme and assigns overhead to products at the rate of $30 per direct labor hour. The costs per unit for each product group in 2013 were as follows: Because profitability has been lagging and competition has been getting more intense, Outdoor Texas is considering implementing an activity-based costing system for 2014. In analyzing the 2013 data, management determined that its $12,030,000 of factory overhead could be assigned to four basic activities: quality control, setups, material handling, and equipment operation. Data for the 2013 costs associated with each of the four activities follow. Umbrellas Gazebo 12.00 120.00 18.00 135.00 24.00 180.00 54.00 435.00 Dir material Dir labor OH Total Costs 0.60 Quality control 630,000 Activity Quality control setup 600,000 Chasise Lounges 12.00 45.00 60.00 117.00 4.50 Material Handling 1.50 Equpment operation 1,800,000 Base # of units producted 14,970,000 Total cost 18,000,000 setups Material handing Equipment operation # units # setups Pounds of material # machine hrs mach hrs / unit # sets pounds of meterial used # of machine hours Umbrellas Gazebo 300,000 30,000 600 1,300 1,200,000 3,000,000 600,000 1,100,000 2.00 36.67 Chasise Lounges 90,000 1,100 1,800,000 1,300,000 14.44 420,000 3,000,000 7.14 Management determined that the following allocation bases and total 2013 volumes for each allocation base could have been used for ABC: Volume measures for 2013 for each product and each allocation base were as follows: Umbrellas Gazebo Chasise Lounges a setups lb material # machine hrs 600 1,200,000 600,000 1300 3,000,000 1,100,000 135 90,000 1100 1,800,000 1,300,000 45 minutes DLHs DLHs 0.6 4.5 1.5 For 2013, determine the total overhead allocated to each product group using the traditional allocation based on direct labor hours. Umbrella Gazebo Chaise lounge Total dl 18 30,000 How much direct labor time is needed to produce an umbrella, a gazebo, and a chaise lounge? Umbrella Gazebo Chaise lounge b # units 300,000 For 2013, determine the total overhead that would have been allocated to each c product group if activity-based costing were used. Compute the cost per unit for each product group. Round your answers to the nearest cent. Total overhead Total cost per unit Umbrellas $ $ Gazebos $ $ Chaise $ $ Outdoor Texas has a policy of setting sales prices based on product costs. How d would the sales prices using activity-based costing differ from those obtained using the traditional overhead allocation? The input in the box below will not be graded, but may be reviewed and considered by your instructor. Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 Item 7 Item 8 Item 11 Item 9 Item 12 Item 10 Item 13 Item 11 Item 14 Check My Work Feedback Post Submission Feedback Item 12 Item 13 Units produced Umbrellas Gazebo Chasise Lounges Quality control 630,000 300,000 30,000 90,000 420,000 setup Material Handling Equpment operation Total cost 600,000 1,800 14,970 18,000 1.5 1.43 0.0043 5,400,000 4,050,000 4,050,000 13,500,000 Total cost 0 ABC Reschman Co. manufactures two products. Following is a production and cost analysis for each product for 2013: Elysia Sanderson, the firm's cost accountant, has just returned from a seminar on activity-based costing. To apply the concepts she learned, she decides to analyze the costs incurred for Products A and B on an activity basis. In doing so, she specifies the following first and second allocation processes: a. Determine the total overhead for Reschman Co. $ I tem 1 b. Determine the plantwide overhead rate for the company, assuming the use of direct labor hours. Round your answer to the nearest cent. $ per DLH I tem 2 c. Determine the cost per unit of Product A and Product B, using the overhead rate found in (b). Round your answers to the nearest cent. Product A Product B $ per unit $ per unit Item 3 Item 4 Determine the cost allocations to departments (firststage allocations). Allocate costs from the departments in the following order: building occupancy, purchasing, and power. Finish the cost allocations for one department to get an ''adjusted'' cost to allocate to the next department. d Building Occupancy Purchasing Power Dept. 1 Dept. 2 Purchasing: Total cost Material X Material Y $ per sq. ft. $ $ $ $ Item 5 $ per purchas e order $ $ Item 10 $ per kWh $ $ Item 13 Item 6 Item 7 Item 8 Item 9 Item 11 Item 12 Power: (Round total cost per kWh to the nearest cent.) Total cost Department 1 Department 2 e Item 14 Item 15 Using the allocations found in (d), determine the cost allocations to products (secondstage allocations). Round amounts to the nearest dollar. If there is no allocation to a Product, enter "0" or leave blank. Product Product A B Indirect labor Department 1 Department 2 Power Department 1 Department 2 $ I tem$16 Item 17 I tem 18 Item 19 I tem 20 Item 21 I tem 22 Item 23 I tem 22 Item 23 Machinery-related (same basis as Power) Department 1 I tem 24 Item 25 Department 2 I tem 26 Item 27 Building occupancy (same basis as Power) Department 1 I tem 28 Item 29 Department 2 I tem 30 Item 31 Purchasing Material X I tem 32 Item 33 Material Y I tem 34 Item 35 Total overhead Item 37 Item $ $ 36 cost f. Determine the cost per unit of Product A and Product B using the overhead allocations found in (e). Round your answers to the nearest cent. Cost per unit Product A $ Item 38 Blueprint Problem: Activity-based costing Activity-Based Costing Traditionally, overhead costs are assigned based arbitrarily on the rate of either direct labor or direct materials associated with production. This makes sense when companies only make a few products, production processes are simple, and overhead costs are less pervasive. However, today production processes are more complex, companies make a wider array of products, and fewer costs are directly traceable to units of production. To address this, companies use activity-based costing (ABC). Specifically, activity-based costing identifies and traces costs and expenses to activities and then to specific products. ABC uses multiple factory overhead rates based on activities. Activities are the types of work, or actions, involved in a manufacturing process or service activity. For example, assembly, inspection, and engineering design are activities. The estimated activity costs are allocated to products using an activity rate. Activity rates are determined as follows: Activity Rate = Estimated Activity Cost / Estimated Activity Base Usage Comparing Two Products under Traditional and Activity-Based Costing Compare two projects under development by the same company. The following are a few aspects of each product's development process relevant to costs. Product A Product B Requires 3,440 hours of testing Requires 860 hours of testing Requires 5,180 units of computing power Requires 2,220 units of computing power Requires 30 developer hours to implement Requires 70 developer hours to implement Cost Items Cost of Each Activity Testing: 24800.00 Computing power: 37200.00 Developer hourly cost: $13 per hour 24,800.00 37,200.00 1,300.00 63,300.00 Traditional Costing Traditional costing would take the proportion of a direct cost, such as direct labor hours, and use it as the basis for allocating overhead costs, such as computing power and testing. In the following table, use developer hours as the basis for assigning overhead costs (computing and developer costs) to each project If required, round your answers to the nearest dollar. Product A Product B Percentage of developer hours 0.30 Percentage of developer hours 0.70 Testing cost 7440.00 Testing cost 17360.00 Computing cost 11160.00 Computing cost 26040.00 Developer cost 390.00 Developer cost 910.00 Total cost 18990.00 Total cost 44310.00 Allocation basis for Product A: The amount of labor hours associated directly with Product A, as a percentage of all developer hours worked (regardless of product). The amounts for overhead to be allocated are multiplied by this value to determine the overhead to be assigned to Product A under the traditional costing method. Activity-Based Costing Using the data above for products A and B, calculate the costs using activity-based costing. Allocate the costs of testing, computing, and development based on the rates of activity consumed by each product's development process. If required, in your computations, round per unit costs to the nearest cent. Round your final answers to the nearest dollar. Cost Activity Base Testing Hours of testing Computing cost Units of computing power Developer cost Development hours Activity-based costing for varying batch production A manufacturing company has the following two activities associated with completion of products: 1. The setting up of machines for running batches of products 2. The actual production of units produced The company has annual manufacturing overhead costs of $2,000,000, of which $200,000 is directly involved in setting up machines for batch runs. During the year, the company expects to perform 400 machine setups, one setup per batch for a total of 400 batches of production. Assume that the batch sizes vary considerably, but the work involved in setting up the machines is not appreciably different from one job to the next. Testing cost Computing cost Develp Product A 3,440.00 37,200.00 1,300.00 Product B 860.00 37,200.00 1,300.00 41,940.00 39,360.00 batch cost per unit 81,300.00 200,000.00 2.46 If the company estimates that the $200,000 costs associated with setups will yield 400 setups this year, the cost associated directly with each setup will be $$$$$$$$$ per setup. Because each job will require its own setup, setup costs are viewed as batch costs. Because $200,000 of the $2,000,000 are costs associated with setups, this means that costs associated directly with the production of units equal $ 180,000 0 1 1 . Correct 1 o Correct 3 o Correct 5 o Correct 7 o - Select your answer -Correct 9 of Item 1 1 Correct 1 o Correct 3 o Correct 5 o Correct 7 o 1 Correct 1 of It Correct 2 of It # batchs 100,000.00 100,000.00 Set up cost 41940.00 39360.00 2.38 0.39 200000.00 81300.00 2.78 0.00 500.00 Correct 2 1o Correct 4 3o Correct 6 5o Correct 8 7o Correct 2 of It Correct 4 of It Correct 6 of It Correct 8 of It Correct 2 of It Correct 4 of It Correct 6 of It Correct 8 of It Richards Company The following information has been taken from the cost records of Richards Company for the past year: Raw material used in production Total manufacturing costs charged to production during the year (includes direct material, direct labor, and overhead equal to 60% of direct labor cost) Cost of goods available for sale Selling and Administrative expenses Inventories Raw Material Work in Process Finished Goods Refer to Richards Company. Direct labor cost charged to production during the year was Incorrect Solution Correct Response d Hide Feedback 326.00 686.00 360.00 826.00 25.00 Beginning 75.00 80.00 90.00 a. $360. b. $135. c. $216. d. $225. Ending 85.00 30.00 110.00 Home / Traceroute Traceroute Hop 1 2 3 4 5 6 7 Hostname 208-64-36-1.p2.agr3.troy2.waveform.net core5.tym.r256.net 208.79.215.5 vlan259.car1.detroit1.level3.net 4.68.71.26 ae-38-sur02.pinedale.ca.ccal.comcast.net te-6-0-acr01.pinedale.ca.ccal.comcast.net IP Address (208.64.36.1) (173.225.185.37) (208.79.215.5) (4.31.123.97) (4.68.71.26) (68.87.221.54) (162.151.83.6) 1 0.563 ms 0.485 ms 0.239 ms 0.992 ms 85.945 ms 84.926 ms 85.700 ms 2 0.425 ms 0.317 ms 0.410 ms 0.820 ms 85.329 ms 84.852 ms 85.612 ms 3 0.233 ms 0.477 ms 0.237 ms 0.988 ms 85.438 ms 84.942 ms 85.698 ms