Please answer question 3 & 4.
456 7 B 9 10 11 12 Activity 13 14 15 Production Scheduling 15 Machine Setups 17 Equipement Depreciation 18 Plant Depreciation 19 Quality Inspection 20 Packing 21 Plant Administration 22 23 24 25 23 29 30 31 32 33 ***** 34 35 Base (noted within the case) #Batches (Exhibit 3) #Batches (Exhibit 3) (Exhibit 3) Machine Operations Factory sq ft (Exhibit 3) #inspections performes (Exhibit 3) #boxes used (Exhibit 2) Ending Inventory Cost (Exhibit 5) Zauner Ornaments Calculations of ABC Costs Small Large Specialty 420,000 100,000 100,000 35,000 50,000 100,000 Estimated Base (noted within different exhibits) Small Large Specialty 800 750 800 750 4 4 Base Information (Exhibit 1) Ornaments Boxes Estimated MOH S (noted within the case) $85,000 $160,000 $220,000 $150,000 $70,000 $185,000 $300,000 $1,170,000 S/Activity/Product Production Scheduling Machine Setups Equipment Depreciation Plant Depreciation Quality Inspection Packing Plant Administration S/Activity Boxes produced MOHS/unit DM-DL/ Total ABC Cast B 1 1 35,000 26,100 Activity Rate 1 2 50,000 51,300 Small Large Specialty $ 33,170.73 $ 31,097.56 $20,731.71 $ 62,439.02 $ 58,536.59 $39.034.39 $67,692.31 $ 67,602.31 $ 84,615.38 $ 88,235.29 $ 44,117.65 $ 17,647.06 $10,000.00 $ 20,000.00 $ 40,000 00 $ 35,000.00 $ 50,000.00 $ 100,000.00 $ 87,000.00 $ 171,000.00 $ 42,000.00 $383,537 $ 442,444 S 344,019 31.000 50,000 100,000 3.44 $10.96 $ 8.85 S $ 4.00 S 5.00 $ 7.00 14.96 S 13.85 $ 10.44 S 500 $ 41.46 #Batches 500 $ 78.05# Batches 5 $16,923.08W Machine Operations 0 $88,235.19 Factory sq f 4 $10,000.00 /# inspections performed 1.00/boxes used 3.33 Ending Inventory Cost S 100,000 $ 12,600 $ 1.170,000 Check! 3. What do these results tell you about activity-based costing versus costing based on standard volume or direct materials plus direct labor? Answer Question 3 here and show support below. 14. What changes, if any, should management make to Zauner's pricing strategy? 2 Answer Question 4 here and show support below. 5 Y. 1 6 16 12 Activity 13 14 15 Production Schedung 16 Machine Stops Equipment Depreciation 1 Plan Depreciation Quality Ipection 20 Packing 21 Plantation L Bair Base Information Exhibit) Ornamen Bases Batches (Exhibe 3) Batches (3) Machine Operations (3) Factory (3) pections perform (3) #bons used Fading Ivory Cost Ext) (HKD) Zauner Ornaments Calculations of ABC Costs Small Large Specialty 431,000 300,000 10.00 11,000 30.000 100.000 Estated Base wide) Small Large Specially 750 750 Estimated MORS $85.000 $100,000 $220,000 $150,000 $70,000 $185,000 100.000 $110.000 100 800 4 1 1 35,000 Small 1 S 4 1 3 Activity Rate 500 1 41.46 Becke 18.05 3 $16,325.08Machine Operat 186.135.29 Factory 4 $10,000.00 $.00 Activity Product Productes Scheduling $11,1 Machine Seas Tap Depencat 1003 1 MALL Pat Depeciation Quality Inspection 1 114 316,000.00 34000 34000 $11,000000000000000 Packing Pant Adation S'Activity $383,587 5 442,4445 34419 11000 10000 10000 8.MS 344 Bons produced MORS DAD 4.00 S 5.00 1.00 Tal ABC Ca 1494 1338 38.44 100.000 $ 1001 30,000 31,300 Large Specialy 113453 AEVORES WROCK 3 WOCHE WITH & WOCHE 000000000000000 pectus performed 100bd 3.33 Tading lary C 1 110.000 Check! D
