It is the TenAlpina Tools: Product line profitability case that has the exhibits

Tenalpina had been using a traditional system, where manufacturing overhead was allocated to each product based on direct labor time. The direct materials rates for each product are given in Exhibit 1. Calculate a direct labor rate based on DL cost (Exhibit 1), production levels (Exhibit 1), and labor requirements (Exhibit Calculate an MOH rate using direct labor time is the allocation base. Using this system, what is the per unit cost to produce a piton, hammer, and rock nut set? Hint - if you do this correctly, you should be able to calculate the margins on page 3. 2.) Tenalpina is proposing an ABC costing system, where each work station is a cost pool. Their approach is slightly different than ABC systems we have seen, in that they allocate direct labor to work stations, instead of tracing it to products. Assign the appropriate amount of each overhead cost to each work station. Note - variable power, supplies, and depreciation have been done for you (Exhibit 6) Cold roll Oven Bore Deburr Assemble Injection Package TOTAL DL Variable Power Supplies Depreciation Lighting Occupancy Supervision TOTAL Exhibiti Monthly Income Statement for January Sales % of sales Product Pitons Hammers Rock nut sets Sales Volume Price/unit 4,200 $ 10.50 400 $ 61.00 2300 $ 24.50 Revenue $44,100.00 $24,400.00 $56,350.00 Total $124,850.00 100% Cost of Goods Sold Materials Product Pitons Hammers Rock nut sets Total DM Production volume 4200 400 2300 Cost/unit $ 1.45 $ 10.44 $ 6.01 Total DM $6,090.00 $4,176.00 $13,823.00 $24,089.00 19-3% Authorized for use only in the course ACC 355 at University of Michigan-Dearborn taught by Matthew Hayes from Sep 01, 2019 to Dec 31, 2019 Use outside these parameters is a copyright violation. Direct Labor $47,916.67 38.4% Manufacturing Overhead Light, Heat, and Power Supplies Depreciation Manufacturing occupancy Supervision Total manufacturing overhead Cost of Goods Sold $2,855.00 $725.00 $ 1,612.92 $2,200.00 $5,270.83 $12,663.75 $84,669.42 67.8% Gross Margin $40,180.58 32.2% S, G, and A Expense Office salaries General administration Administrative occupancy Shipping and delivery $ 10,541.67 $ 600.00 $ 550.00 $ 745.00 Operating Income for the Month $12,436.67 $27,743.91 10% 22% Exhibit 4: Standard Labor and Machine Times Work Stations Deburr Oven & drop- forge and Bore polish Assemble Injection mold Package Total Cold roll and cut Labor Minutes pitons L 1 hammers 2.35 rock nut sets 0.37 2.6 0.41 1.6 1.7 0.2 0. 35 5 .6 0.03 0.5 0.1 13 42 2.2 0.1 Machine Minutes pitons hammers rock nut sets 0.8 2 0.3 2.25 0.3 1.5 0.25 1 Exhibit 5: Work Stations, Activity Drivers, and Use by Product Oven & drop- forge Yes Cold roll and cut Yes Yes Package Deburr and polish Yes Yes Work stations: pitons hammers rock nut sets Authorized lacuse only in the course add 3.55 at liversity of Michidan.Deathbrn taught by Matthew Hayes from Sep 01, 2019 fo Dec 31, 2019, Use outside these parameters is a copyright violation Bore Yes Yes Assemble No Injection mold No Yes Yes Yes No Yes No No Yes No Yes Activity Driver Roll cuts Hammer Holes Edges in blows bored cm Clamp crimps Injections Packages* 0 Activity counts: pitons hammers rock nut sets o * Pitons were packaged ten to a package for shipping to the distributor, who opened and repackaged them for customers. Hammers and rock nut sets were packaged in single units and one set per package, respectively. Tenalpina had been using a traditional system, where manufacturing overhead was allocated to each product based on direct labor time. The direct materials rates for each product are given in Exhibit 1. Calculate a direct labor rate based on DL cost (Exhibit 1), production levels (Exhibit 1), and labor requirements (Exhibit Calculate an MOH rate using direct labor time is the allocation base. Using this system, what is the per unit cost to produce a piton, hammer, and rock nut set? Hint - if you do this correctly, you should be able to calculate the margins on page 3. 2.) Tenalpina is proposing an ABC costing system, where each work station is a cost pool. Their approach is slightly different than ABC systems we have seen, in that they allocate direct labor to work stations, instead of tracing it to products. Assign the appropriate amount of each overhead cost to each work station. Note - variable power, supplies, and depreciation have been done for you (Exhibit 6) Cold roll Oven Bore Deburr Assemble Injection Package TOTAL DL Variable Power Supplies Depreciation Lighting Occupancy Supervision TOTAL Exhibiti Monthly Income Statement for January Sales % of sales Product Pitons Hammers Rock nut sets Sales Volume Price/unit 4,200 $ 10.50 400 $ 61.00 2300 $ 24.50 Revenue $44,100.00 $24,400.00 $56,350.00 Total $124,850.00 100% Cost of Goods Sold Materials Product Pitons Hammers Rock nut sets Total DM Production volume 4200 400 2300 Cost/unit $ 1.45 $ 10.44 $ 6.01 Total DM $6,090.00 $4,176.00 $13,823.00 $24,089.00 19-3% Authorized for use only in the course ACC 355 at University of Michigan-Dearborn taught by Matthew Hayes from Sep 01, 2019 to Dec 31, 2019 Use outside these parameters is a copyright violation. Direct Labor $47,916.67 38.4% Manufacturing Overhead Light, Heat, and Power Supplies Depreciation Manufacturing occupancy Supervision Total manufacturing overhead Cost of Goods Sold $2,855.00 $725.00 $ 1,612.92 $2,200.00 $5,270.83 $12,663.75 $84,669.42 67.8% Gross Margin $40,180.58 32.2% S, G, and A Expense Office salaries General administration Administrative occupancy Shipping and delivery $ 10,541.67 $ 600.00 $ 550.00 $ 745.00 Operating Income for the Month $12,436.67 $27,743.91 10% 22% Exhibit 4: Standard Labor and Machine Times Work Stations Deburr Oven & drop- forge and Bore polish Assemble Injection mold Package Total Cold roll and cut Labor Minutes pitons L 1 hammers 2.35 rock nut sets 0.37 2.6 0.41 1.6 1.7 0.2 0. 35 5 .6 0.03 0.5 0.1 13 42 2.2 0.1 Machine Minutes pitons hammers rock nut sets 0.8 2 0.3 2.25 0.3 1.5 0.25 1 Exhibit 5: Work Stations, Activity Drivers, and Use by Product Oven & drop- forge Yes Cold roll and cut Yes Yes Package Deburr and polish Yes Yes Work stations: pitons hammers rock nut sets Authorized lacuse only in the course add 3.55 at liversity of Michidan.Deathbrn taught by Matthew Hayes from Sep 01, 2019 fo Dec 31, 2019, Use outside these parameters is a copyright violation Bore Yes Yes Assemble No Injection mold No Yes Yes Yes No Yes No No Yes No Yes Activity Driver Roll cuts Hammer Holes Edges in blows bored cm Clamp crimps Injections Packages* 0 Activity counts: pitons hammers rock nut sets o * Pitons were packaged ten to a package for shipping to the distributor, who opened and repackaged them for customers. Hammers and rock nut sets were packaged in single units and one set per package, respectively