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Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: Expected Consumption Ratios Activity Driver Wafer A Wafer B Inserting
Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: Expected Consumption Ratios Activity Driver Wafer A Wafer B Inserting and sorting process activities: 1. Developing test programs $ 47,000 Engineering hours 0.25 0.75 Making probe cards 67,000 Development hours 0.10 0.90 3. Testing products 500,000 Test hours 0.65 0.35 4. Setting up batches 140,000 Number of batches 0.60 0.40 5. Engineering design 91,000 Number of change orders 0.20 0.80 6. Handling wafer lots Number of moves 0.40 0.60 7. 0.25 800,000 0.75 Inserting dies Number of dies 2 550,000 Procurement process activities: 0.20 0.80 400,000 8. 0.30 0.70 61,000 Number of purchase orders Number of receiving orders Inspection hours Purchasing materials Unloading materials Inspecting materials 9. 0.65 0.35 81,000 10. 0.50 0.50 300,000 Distance moved 11 Moving materials 0.30 0.70 37,000 Number of invoices 12 Paying suppliers Pry D Calculated using number of dies as the single unit-level driver Calculated by multiplying the consumption ratio of each product by the cout of each activity Required: 1. Using the five most expensive activities, calculate the overhead contaigned to each product. Assume that the costs of the other activities are asigned in proportion to the cost of the five activities. If required, round your answers to the nearest dollar Activity Budgeted Activity Cost Testing products Handling wafer lots Inserting dies Purchasing materials Moving materials Total activity cost Approx. ABC Cost Wafer A Wafur 2. Calculate the error relative to the fully specified ABC product cost. Round your calculation to three decimal places and the percentage answer to one decimal place. Inserting des Purchasing materials Moving materials Tetat activity cost ll!! Approx. ABC Cost Water Wafer 2. Calculate the error reiste to the specified ABC productos. Round your calculation to three decimal places and the percentage answer to one decimal place Relative error Wafer A Water 1. What a 1. 2. each had cost of 05.000 and the reacties had a cost of 575,500 cite these to Water Al specified AC system and then by an amately relevant ABCproach Cost by otul specified AC tystem Cost by an aproximately relevant Corah Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: Expected Consumption Ratios Activity Driver Wafer A Wafer B Inserting and sorting process activities: 1. Developing test programs $ 47,000 Engineering hours 0.25 0.75 Making probe cards 67,000 Development hours 0.10 0.90 3. Testing products 500,000 Test hours 0.65 0.35 4. Setting up batches 140,000 Number of batches 0.60 0.40 5. Engineering design 91,000 Number of change orders 0.20 0.80 6. Handling wafer lots Number of moves 0.40 0.60 7. 0.25 800,000 0.75 Inserting dies Number of dies 2 550,000 Procurement process activities: 0.20 0.80 400,000 8. 0.30 0.70 61,000 Number of purchase orders Number of receiving orders Inspection hours Purchasing materials Unloading materials Inspecting materials 9. 0.65 0.35 81,000 10. 0.50 0.50 300,000 Distance moved 11 Moving materials 0.30 0.70 37,000 Number of invoices 12 Paying suppliers Pry D Calculated using number of dies as the single unit-level driver Calculated by multiplying the consumption ratio of each product by the cout of each activity Required: 1. Using the five most expensive activities, calculate the overhead contaigned to each product. Assume that the costs of the other activities are asigned in proportion to the cost of the five activities. If required, round your answers to the nearest dollar Activity Budgeted Activity Cost Testing products Handling wafer lots Inserting dies Purchasing materials Moving materials Total activity cost Approx. ABC Cost Wafer A Wafur 2. Calculate the error relative to the fully specified ABC product cost. Round your calculation to three decimal places and the percentage answer to one decimal place. Inserting des Purchasing materials Moving materials Tetat activity cost ll!! Approx. ABC Cost Water Wafer 2. Calculate the error reiste to the specified ABC productos. Round your calculation to three decimal places and the percentage answer to one decimal place Relative error Wafer A Water 1. What a 1. 2. each had cost of 05.000 and the reacties had a cost of 575,500 cite these to Water Al specified AC system and then by an amately relevant ABCproach Cost by otul specified AC tystem Cost by an aproximately relevant Corah
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