Question
ONLY NEED THIS QUESTION! * Suppose that Jacob learned about duration-based costing after completing the pilot study. According to the plant manager of the phone
ONLY NEED THIS QUESTION!
* Suppose that Jacob learned about duration-based costing after completing the pilot study. According to the plant manager of the phone plant used for the pilot study, the cycle time for the Regular model is 0.50 hours and that of the Deluxe model is one hour. Calculate the unit cost for each model using duration-based costing. How do unit costs compare to the ABC costs? Which approach would you recommend to Kim? *
****below is for reference, the question is too big for me to post but its the same question posted on chegg from which this question belongs to
MTC.01 CableTech Bell Corporation (CTB) operates in the telecommunications industry. CTB has two divisions: the Phone Division and the Cable Service Division. The Phone Division manufactures telephones in several plants located in the Midwest. The product lines run from relatively inexpensive touch-tone wall and desk phones to expensive, high-quality cellular phones. CTB also operates a cable TV service in Ohio. The Cable Service Division offers three products: a basic package with 25 channels; an enhanced package, which is the basic package plus 35 additional channels and two movie channels; and a premium package, which is the basic package plus 55 additional channels and six movie channels.
c. Using the ABC assignments as the benchmark, the unit manufacturing cost for the Regular model is currently by $ d. If the unit product cost of the Regular model is , then the selling price could be , making the company competitive. 7. Suppose that Jacob learned about duration-based costing after completing the pilot study. According to the plant manager of the phone plant used for the pilot study, the cycle time for the Regular model is 0.50 hours and that of the Deluxe model is one hour. Calculate the unit cost for each model using duration costing. The unit costs of the Regular Models is $ The unit costs of the Deluxe Models is $ How do unit costs compare to the ABC costs? DBC is much simpler and costly to use than ABC and produces about the same unit costs. Which approach would you recommend to Kim? should be recommended. 8. Review Exhibit 2.6. Now consider the use of the regression model in the memo submitted by Jacob. Which of the four data analytic types (descriptive, diagnostic, predictive, and prescriptive) apply to the use of the regression model? Note: More than one may apply. Explain your choice(s). Both applications are certainly , telling what is. The first describes the relationship between total overhead and direct labor cost. The second describes the relationship between material handling cost and the number of moves. The next step, though, in using the models is assessing why. The correlation between overhead and direct labor cost suggests the inadequacy of using only direct labor cost to assign overhead costs to individual products. The strong correlation between material handlina costs and number of moves reinforces this diaanosis. Thus, there is clearlv a role for the rearession results as wellStep by Step Solution
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