Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I just need help with this whole assignment. Please help me. 9-19 4 Search 19 < Search < S21Assignement1... To Do LTE run, set up
I just need help with this whole assignment. Please help me.
19 < Search < S21Assignement1... To Do LTE run, set up equipment, manage products, and run machines. The demand on these activities by different flavors is illustrated in Exhibit 3. He began by identifying the resources that were being consumed by the activities. These resources were grouped in six categories as shown in Exhibit 1. After interviewing the department heads in charge of support staff wages and benefits and insurance, he found out that their services are used by three activities: process production run (35%), set up (35%), and the remaining 30 % consumed to manage products. Next, the controller tackled the information system item and determines, after interview with the head of the information system department, that process production runs accounts for 40 % of their services while 60 % are used to manage products. The results of his investigations about the usage of the equipment revealed that it was entirely used to run machines. Maintenance services were shared equally between the production run activity and run machine activity. Finally, utility was shared equally by the four activities. Questions l. Describe the issue the company is facing 2. Calculate the costs for the four favors using ABC, reproduce the income statement, and calculate the new profit margin for each flavor 3. Compare the assigned overhead cost of each flavor (per unit) under both methods. Analyze why has ABC changed the total cost assigned to each flavor? provide tangible examples from the case to support your analysis. Which flavors are mispriced? 4. What actions may management consider in addressing the problems the company is facing? 2 Exhibit Support staff wages Benefits and insurances Information Systems $30,000 $12,000 $10,000 $7,000 Equipment Dashboard 000 ooo Calendar Notifications 29 Inbox
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started