Need help with the HW assignment attached , there are 5 questions

1. TwoStage ABC for Manufacturing Merlot Company has determined its activity cost pools and cost drivers to be the following: Cost pools Setup $ 56,000 Material handling 12,800 Machine operation 240,000 60,000 Packing $ 368,800 Total indirect manufacturing costs Cost drivers Setups 400 Material moves 800 Machine hours 16,000 Packing orders 1,000 One product made by Merlot, metal casements, used the following activities during the period to produce 500 units: Setups 20 Material moves 80 Machine hours 1,900 Packing orders 150 (a) Calculate the cost per unit of activity for each activity cost pool for Merlot company. Setup Material move Machine operation Packing $Answer $Answer 0 $Answer 0 $Answer 0 (b) Calculate the manufacturing overhead cost per metal casement manufactured during the period. Round your answer to the nearest cent. $Answer 0 Check 2. Calculating ActivityBased Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following activities and costs: Setup (1,000 setup hours) $118,000 Production scheduling (400 batches) 30,000 Production engineering (60 change orders) 90,000 Supervision (2,000 direct labor hours) 64,000 Machine maintenance (12,000 machine hours) 84,000 Total activity costs $386,000 The following additional data were provided for Job 845: Direct materials costs $7,000 Direct labor cost (5 Milling direct labor hours; 35 Finishing direct labor hours) $1,000 Setup hours 5 hours Production scheduling 1 batch Machine hours used (25 Milling machine hours; 5 Finishing machine hours) Production engineering 30 hours 3 change orders (a) Calculate the cost per unit of activity driver for each activity cost category. Setup $Answer 0 Production scheduling $Answer 0 Production engineering $Answer 0 Supervision $Answer 0 Machine maintenance $Answer 0 (b) Calculate the cost of Job 845 using ABC to assign the overhead costs. $Answer 0 (c) Calculate the cost of Job 845 using the plantwide overhead rate based on machine hours. (Round your answer to the nearest dollar.) $Answer 0 3. Customer Profitability Analysis Gonalong, Inc. has 10 customers that account for all of its $4,200,000 of net income. Its activity based costing system is able to assign all costs, except for $650,000 of general administrative costs, to key activities incurred in connection with serving its customers. A customer profitability analysis based on activity costing produced the following customer profits and losses: Custome r $ 306,000 #2 624,000 #3 (257,000) #4 909,000 #5 950,000 #6 872,000 #7 598,000 #8 322,000 #9 (105,000) #1 0 Total #1 631,000 $ 4,850,000 (a) Using the customer profitability analysis provided in the exercise to calculate the following profits. (i) Calculate the total profits from the 3 most profitable customers Answer 0 (ii) Calculate the total profits for the 5 most profitable customers Answer 0 (iii) Calculate the total profits for the 8 most profitable customers Answer 0 (iv) Calculate the total profits for the 9 most profitable customers Answer 0 (b) Dropping customers 3 and 9 would not necessarily result in an increase in profits of $362,000. Answer (c) Customer profitability analysis helps management to determine whether some customers are unprofitable, and whether the customers that produce the most sales revenue are producing the most profits. Answer Check 4. Stage 2 ABC for Manufacturing: Reassigning Costs to Cost Objectives Regal Products has developed the following activity cost information for its manufacturing activities: Activity Machine setup Movement Activity cost $60.00 per batch 15.00 per batch move 0.10 per pound Drilling 5.00 per hole Activity Activity cost Welding 2.00 per inch Shaping 25.00 per hour Assembly 19.00 per hour Inspection 2.00 per unit Filling an order for a batch of 50 fireplace inserts (each insert weighing 150 pounds) required the following: Three batch moves Two sets of inspections Drilling five holes in each unit Completing 50 inches of welds on each unit Thirty minutes of shaping for each unit One hour of assembly per unit Determine the activity cost of converting the raw materials into 50 fireplace inserts. $Answer 0 5. Customer Profitability Analysis Roland, Inc. provides residential painting services for three home building companies, Alpha, Beta, and Gamma, and it uses a job costing system for determining the costs for completing each job. The job cost system does not capture any cost incurred by Roland for return touchups and refinishes after the homeowner occupies the home. Roland paints each house on a square footage contract price, which includes painting as well as all refinishes and touchups required after the homes are occupied. Each year, Roland generates about onethird of its total revenues and gross profits from each of the three builders. Roland has observed that the builders, however, require substantially different levels of support following the completion of jobs. The following data have been gathered: Support Activity Major refinishes Driver Costs per Driver Unit $80 Touchups Number of visits $110 Communication Hours on job Number of calls $40 Builde r Major Refinishes Touchups Communication Alpha 80 150 360 Beta 35 110 205 Gamma 42 115 190 (a) Assuming that each of the three customers produces gross profits of $100,000, calculate the profitability from each builder after taking into account the support activity required for each builder. Alpha $Answer 0 Beta $Answer 0 Gamma $Answer 0