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Name_ ACC 542-340 Spr 2015-16 REQUIRED Homework Due by midnight April 21, 2016 Use the drop box to send your work (on a new or

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Name_ ACC 542-340 Spr 2015-16 REQUIRED Homework Due by midnight April 21, 2016 Use the drop box to send your work (on a new or separate page) in a WORD, EXCEL, or PDF file. The Hill Mfg Firm came up with the following activity-based OH rates for general overhead. 1. (worth 20%) Using the overhead or activity rates below (already calculated for you), apply the activity costs to the Y-30 product. (I've already correctly calculated the Activity-Based OH for the X-20 product.) Machine setups - $130 per setup Soldering - $2.25 per joint Quality control - $40 per inspection Shipments - $220 per shipment Purchase orders - $75 per order Machine related - $8 per machine hour Product X-20 Product Y-30 Expected Amount Expected Amount of OH Activity of OH Activity Machine setups 1,000 setups $130,00 600 setups $78,000 Quality control 4,000 inspect 160,000 5,000 inspections $200,000 Purchase orders 840 orders 63,000 360 orders $27,000 Soldering 60,000 joints 135,000 140,000 joints $315,000 Shipments 400 shipments 88,000 200 shipments $44,000 Machine related 30,000 mach 240,000 40,000 mach hrs. $320,000 hrs Total overhead costs $816,00 $984,000 2. (worth 20%) The Hill Mig Firm expects to produce and sell 30,000 X-20 products and 5,000 Y-30 products. What total Overhead per unit should be charged to each of these 2 products? X-20 $816,000/30,000= $27.2 per unit Y-30: $984,000/5,000=$196.8 per unit 3. (worth 60%) The firm believes that it cannot raise prices on either of these 2 products in the short-term, but will investigate whether specific cost initiatives should be undertaken. Calculate the per unit cost per activity and then identify 2 activity costs (from above) that you would suggest that Hill Mig investigate first. Why did you pick these 2 costs

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