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MZ lids been approached by al A B C D E F G H K Company XYZ is an automotive component supplier. XYZ has been

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MZ lids been approached by al A B C D E F G H K Company XYZ is an automotive component supplier. XYZ has been approached by another plant to consider expanding its production of part 24Z2 to a total annual quantity of 2,700 units. XYZ uses traditional costing systems that allows indirect manufacturing costs to be based on direct-labor costs. The currect calculation is 450% of direct labor cost. a) Find the total cost of Part 24Z2 and cost per one unit of 24Z2 using Traditional Costing. XYZ decided to try an Activity Based Costing system. The table to the right outlines the activity centers and their annual costs which is Part 1 of activity based costing. Using the data in the table, complete Part 2 of activity based costing to find the total cost of making part 2472. b) Find the total cost of Part 24Z2 and cost per one unit of 24Z2 using Activity Based Costing. a) Complete Traditional Costing Table Below (5%) b) Complete the ABC Table Below (20%) Traditional Costing for Part 2472 - 2700 Units ABC Part 1 ABC Part 2 Per Unit Factory Overhead Annual Cost Cost Per Cost Driver Total Cost 2700 Total Activity Center Costs (Annual) Driver Activity Driver Unit Consumption Part 24Z2 Direct Material 2.20 Quality: Pieces Scrapped 855,000.00 17,000 150 in in Direct Labor 0.70 Production Scheduling: Setups 80,000.00 1,000 5 Indirect Production Setup: Setups 855,000.00 1,000 5 Total Cost of Part 2422 Shipping: Containers Shipped 401,000.00 54,000 12 Cost Per 1 Unit of 2472 Shipping Administration: Shipments 123,000.00 1,700 7 Production: Machines Hours 1,807,000.00 11,500 16 Total Indirect Production Cost 4,121,000.00 Direct Materials Direct Labor Total Cost of Part 2422 Cost Per 1 Unit of 2422

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