(Not a repeat question.) Chuck's Guitar makes Traditional acoustic guitars and Concert Quality guitars. Both use essentially the same manufacturing processes: 1. A guitar neck is cut to shape from a wooden blank using an automated milling machine and enters the assembly area. (Not the focus of this problem.) 2. Plywood is cut in shapes that will ultimately form the figure-8-shaped box. Both guitar types use the same amount of plywood and are cut in the same way in this activity, but the Concert Quality guitar uses much higher quality plywood that is purchased in smaller quantities. 3. The cut plywood is shaped and glued into the traditional figure-8-shaped box, and the neck is added. The assembled guitar is finishsanded. 4. Assembled guitars are moved to another area for finishing. 5. After assembly processes are complete, the assembly area is set-up (cleaned) for the next batch to start production. 6. All laborers earn $10 per hour and do not work when guitars are not being made. The assembly activities typically take the same amount of labor time per guitar for both types of guitar (about one labor hour per guitar.) Expected annual indirect costs for assembly activities. Assembly Activities include cutting the plywood for the box, shaping, gluing, attachin the milled neck, and sanding. Other information exnected for the vear Identify the appropriate driver and calculate the application rate for each of the following costs using ABC: Calculate the cost of a Traditional Guitar that completes the assembly activity using ABC. Assume that the direct materials costs includes all costs of a neck passed from the milling operation. $109.50 $79.50$69.60 $113.50 (Not a repeat question.) Chuck's Guitar makes Traditional acoustic guitars and Concert Quality guitars. Both use essentially the same manufacturing processes: 1. A guitar neck is cut to shape from a wooden blank using an automated milling machine and enters the assembly area. (Not the focus of this problem.) 2. Plywood is cut in shapes that will ultimately form the figure-8-shaped box. Both guitar types use the same amount of plywood and are cut in the same way in this activity, but the Concert Quality guitar uses much higher quality plywood that is purchased in smaller quantities. 3. The cut plywood is shaped and glued into the traditional figure-8-shaped box, and the neck is added. The assembled guitar is finishsanded. 4. Assembled guitars are moved to another area for finishing. 5. After assembly processes are complete, the assembly area is set-up (cleaned) for the next batch to start production. 6. All laborers earn $10 per hour and do not work when guitars are not being made. The assembly activities typically take the same amount of labor time per guitar for both types of guitar (about one labor hour per guitar.) Expected annual indirect costs for assembly activities. Assembly Activities include cutting the plywood for the box, shaping, gluing, attachin the milled neck, and sanding. Other information exnected for the vear Identify the appropriate driver and calculate the application rate for each of the following costs using ABC: Calculate the cost of a Traditional Guitar that completes the assembly activity using ABC. Assume that the direct materials costs includes all costs of a neck passed from the milling operation. $109.50 $79.50$69.60 $113.50
