Marted to Puestion eBook Print Product Costing: Plantwide Overhead versus Activity-Based Costing Sterling industries produces machine parts as a contract provider for a large manufacturing company Stering produces two particular parts, shatts and gears. The competition is een amont contract producers and Strings to management realize how Winerable its market is to cost cutting competitors. Hence, having a very accurate understanding of cost is important to Sterling's survival Sterings president, Sheila Hudson, has observed that the company's current cost to produce that is 556.04 and the current cost to produce gears is $34.32. She indicated to the controller that she suspects some problems with the cost system because Stering is suddenly experiencing extraordinary competition on that, but it seems to have a virtual corner on the years market She is een considering dropping the shatine and converting the company to a reproduct manufacturer of war. She asked the controller, George Coleman to conduct a thorough com study and to consider whether changes in the cost system are necessary. The controler collected the following data about the company's cents and various manufacturing activities for the most recent month Shals Gears 50.000.000 Stine 183613 Overhead generator 330.00 15.00 Maasdorper 52601 133 Number of 30 Number of purchase and order processed 50 Number of our 6.500 aber oft or hours 25.000 4500 Number of engineering hours 2009 200 Number of armowe 62 Verify Strings calculation of owerhead cost per unt of $90.00 for shafts and 515.00 for cars Shafts 10 110.000 530.00 per unit Gears 10 118.000 units $15.00 per unit Calculate the manufacturing overhead cost in total and per unit for shatts and ears using activity based continuing each of the five cost pool represents a separately. the most appropriate activity driver for sing activity costs to the two products Note: Round your answers to two decimal place Shaft Gears Com 11. Comment on Sterling Current cost mystem and the reason the company is facing fete combion for has becometion for Stering en costs to shas Seine under coton Verity Seringscation of overhead cost per unit of $3000 for shatts and $15.00 for gears Shatt 50 units 530.00 per Gears 50 1,000 units S150 Dernit culate the manufacturing overhead cost in total and per unit for shafts and gears using activity based combine asuming each of the five pool reparts are tools the most appropriate activity driver for signing activity Cost the two products NoteRound your answers to two decals Shafts Gears Comenton Starling current cost system and the reason the company and fierce compartoute competition for Sturling over again 5 costs to shaft Stering under cotton Marted to Puestion eBook Print Product Costing: Plantwide Overhead versus Activity-Based Costing Sterling industries produces machine parts as a contract provider for a large manufacturing company Stering produces two particular parts, shatts and gears. The competition is een amont contract producers and Strings to management realize how Winerable its market is to cost cutting competitors. Hence, having a very accurate understanding of cost is important to Sterling's survival Sterings president, Sheila Hudson, has observed that the company's current cost to produce that is 556.04 and the current cost to produce gears is $34.32. She indicated to the controller that she suspects some problems with the cost system because Stering is suddenly experiencing extraordinary competition on that, but it seems to have a virtual corner on the years market She is een considering dropping the shatine and converting the company to a reproduct manufacturer of war. She asked the controller, George Coleman to conduct a thorough com study and to consider whether changes in the cost system are necessary. The controler collected the following data about the company's cents and various manufacturing activities for the most recent month Shals Gears 50.000.000 Stine 183613 Overhead generator 330.00 15.00 Maasdorper 52601 133 Number of 30 Number of purchase and order processed 50 Number of our 6.500 aber oft or hours 25.000 4500 Number of engineering hours 2009 200 Number of armowe 62 Verify Strings calculation of owerhead cost per unt of $90.00 for shafts and 515.00 for cars Shafts 10 110.000 530.00 per unit Gears 10 118.000 units $15.00 per unit Calculate the manufacturing overhead cost in total and per unit for shatts and ears using activity based continuing each of the five cost pool represents a separately. the most appropriate activity driver for sing activity costs to the two products Note: Round your answers to two decimal place Shaft Gears Com 11. Comment on Sterling Current cost mystem and the reason the company is facing fete combion for has becometion for Stering en costs to shas Seine under coton Verity Seringscation of overhead cost per unit of $3000 for shatts and $15.00 for gears Shatt 50 units 530.00 per Gears 50 1,000 units S150 Dernit culate the manufacturing overhead cost in total and per unit for shafts and gears using activity based combine asuming each of the five pool reparts are tools the most appropriate activity driver for signing activity Cost the two products NoteRound your answers to two decals Shafts Gears Comenton Starling current cost system and the reason the company and fierce compartoute competition for Sturling over again 5 costs to shaft Stering under cotton
