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PLEASE ANSWER ALL REQUIREMENTS!!! THANK YOU Carlson Fabricators completed two jobs in June. Carlson Fabricators recorded the following costs assigned to the jobs by the

PLEASE ANSWER ALL REQUIREMENTS!!! THANK YOU

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Carlson Fabricators completed two jobs in June. Carlson Fabricators recorded the following costs assigned to the jobs by the company's activity based costing system: E (Click the icon to view the costs.) Job 622 required 2,400 parts, 62,500 lathe turns, and 1,400 machine hours. All 325 of the job's output units were tested. All units of Job 409 were tested. Requirements 1. How do you know that at least one of the costs recorded for the two jobs is inaccurate? 2. Disregard materials handling costs. How many parts were used for Job 409? How many lathe turns did Job 409 require? How many machine hours? How many units were produced in Job 409? 3. A nearby company has offered to test all product units for $10 each. Based on ABC data, should Carlson Fabricators accept or reject the offer? Give your reason. Requirement 1. How do you know that at least one of the costs recorded for the two jobs is inaccurate? Either the materials handling cost or the grinding cost is inaccurate. Both costs were assigned based on the number of parts. Thus, the ratio of Job 409 materials handling cost to Job 622 materials handling cost should be the same as the ratio of Job 409 grinding cost to Job 622 grinding cost. The materials handling cost ratio is but the grinding cost ratio is Job 622 cannot have times as many parts as Job 409 and times as many parts simultaneously. Costs Allocated Cost Allocation Base Job 409 Job 622 Activity Materials handling $ 650 $ 1,950 Lathe work Number of parts Number of lathe turns Number of machine hours 5,200 20,000 Milling 4,000 28,000 Grinding Number of parts 336 1,680 Testing Number of output units 128 2,600 The materials handling cost ratio is but the grinding cost ratio is Job 622 cannot have times as many parts as Job 409 and times as many parts simultaneously. 1:1, 1:2, 1:3, 1:4, 1:5, The materials handling cost ratio is but the grinding cost ratio is Job 622 cannot have times as many parts as Job 409 and times as many parts simultaneously. 1:1. 1:2. 1:3. 1:4. 1:5. The materials handling cost ratio is but the grinding cost ratio is Job 622 cannot have times as many parts as Job 409 and times as many parts simultaneously. two three four The materials handling cost ratio is but the grinding cost ratio is Job 622 cannot have times as many parts as Job 409 and times as many parts simultaneously. five six seven

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