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I need help figuring this out, any help will be greatly appreciated. Exercise 3. Activity-based vs. traditional costing Please use table 12.4 on page 355
I need help figuring this out, any help will be greatly appreciated.
Exercise 3. Activity-based vs. traditional costing Please use table 12.4 on page 355 of the Richards book for this exercise. Assume that it represents an accurate picture of costs in the warehouse by customer based on activities. Now let's compare it to traditional costing 8. If under traditional costing all management overhead A were allocated only to storage space (number of pallets) and not to handling cost drivers (labor and MHE), which customer would be getting the most "free ride" (the highest number of free, unpaid management hours)? 9. How many free management hours would that customer get? 10. Which customer would be the most disadvantaged (the highest number of paid unused management hours)? 11. How many management hours would that customer pay for and not use? the hrer duke 1 Muito Table 12.4 Example ABC model al ve MHE No. of hours 30,000 hours Administration hours 10,000 hours Overhead A Management hours 20,000 hours Overhead B Other costs 100% Total capacity HA1 - R12 (Home assignn Costs") Coution: This assig alculate answers to Iculations and not orth 2 points. You w arn by trying. I can he tempt. Have your spr preadsheets on phone: ercise 1. ROI warehouse manager is allets on the dock, the -klift is $20,000 and a Customer A Customer B Customer C Customer D Customer E Customer F Operational Space (no of pallets) 10,000 pallets 2,000 200 1,400 900 2,300 1,000 1,500 Labour (no of hours) 120,000 hours 20,000 200 25,000 18,000 21,800 12,000 18,000 5,000 100 8.000 4,500 3,000 1,900 5,000 500 1,000 2.000 2,500 1,500 1.000 1,000 1,000 2,000 3,500 5,000 1,000 500 4,000 5% 10% 20% 25% 15% ervices or warehouse wledge of the real fic channel and cu ompetitive market 10% leeway! unproductive hours Unused capacity 700 5,000 2,500 500 3,000 15% e 2. Overne arehouse provides contrae arehouse are as follows: 2,000,000 00,000; erial handling equipment vices to 3 customers: A, B and C. The direct annual costs of the In order to all per cent to this figure, In terms of labour, if we assume each year of 120,000 hours our lat the gyrrhead our head is fromStep by Step Solution
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