Please answer the following questions based on the given information (8,8,10,11)
10) (2 points) To remain more competitive, Superior has decided to adopt ABC method of allocating overhead. Additionally, they have decided to determine the sale price (revenue) as a mark-up of total costs (not just Direct Material). Superior believes Job ZF14 is priced competitively and would like to use its mark-up for other jobs. Use the ABC Job Report to determine Superior's mark-up rate Sales for Job ZF14 total costs of Job ZF14 Mark-up rate 11) (19 points) Job ZF14 currently consists of 1,000 units. Superior is contemplating a new line of product as Job AF14-S. This product will be a "specialty" version of the ZF14 product and consist of higher quality material that costs 30% more than the standard ZF14 product's material. Production/assembly will take the same number of direct labor hours (same cost per unit). Assume Superior expects to produce 300 units in Job ZF14-S. Superior wants to prepare a comparative Job Summary for ZF14-S. Follow the steps below to complete the comparative Job Summary below a) 2 points) How much will the direct material costs be for Job ZF14-S? Hint: Calculate a direct material cost per units for Job ZF14 and increase it by 30%. Use this cost per unit to determine total direct material job costs for ZF14-S. Include the amount in the Job Summary below. Note that direct material costs will be the same under both ABC and Traditional method. b) (2 points) How much will the direct labor costs be for Job ZF14-S? Hint: Calculate a direct labor cost per unit for Job ZF14 and use it to determine total direct labor job costs for ZF14-S. Note that direct labor costs will be the same under both methods. c) 3 points) For the ABC method, the expected activities for ZF14-S are estimated below. Use the ABC rates calculated in 6b to estimate the overhead associated with ZF14-S in the table below and include the overhead amount in the Job Summary ZF14-S units Costs Support Batch Setups Product Sustaining Inspection General Factory Total Overhead 180 60 Applied d) 2 points) Calculate the overhead that would have been allocated for this job under the traditional method. Use the predetermined rate calculated in Sa and the direct labor costs from 12b 10) (2 points) To remain more competitive, Superior has decided to adopt ABC method of allocating overhead. Additionally, they have decided to determine the sale price (revenue) as a mark-up of total costs (not just Direct Material). Superior believes Job ZF14 is priced competitively and would like to use its mark-up for other jobs. Use the ABC Job Report to determine Superior's mark-up rate Sales for Job ZF14 total costs of Job ZF14 Mark-up rate 11) (19 points) Job ZF14 currently consists of 1,000 units. Superior is contemplating a new line of product as Job AF14-S. This product will be a "specialty" version of the ZF14 product and consist of higher quality material that costs 30% more than the standard ZF14 product's material. Production/assembly will take the same number of direct labor hours (same cost per unit). Assume Superior expects to produce 300 units in Job ZF14-S. Superior wants to prepare a comparative Job Summary for ZF14-S. Follow the steps below to complete the comparative Job Summary below a) 2 points) How much will the direct material costs be for Job ZF14-S? Hint: Calculate a direct material cost per units for Job ZF14 and increase it by 30%. Use this cost per unit to determine total direct material job costs for ZF14-S. Include the amount in the Job Summary below. Note that direct material costs will be the same under both ABC and Traditional method. b) (2 points) How much will the direct labor costs be for Job ZF14-S? Hint: Calculate a direct labor cost per unit for Job ZF14 and use it to determine total direct labor job costs for ZF14-S. Note that direct labor costs will be the same under both methods. c) 3 points) For the ABC method, the expected activities for ZF14-S are estimated below. Use the ABC rates calculated in 6b to estimate the overhead associated with ZF14-S in the table below and include the overhead amount in the Job Summary ZF14-S units Costs Support Batch Setups Product Sustaining Inspection General Factory Total Overhead 180 60 Applied d) 2 points) Calculate the overhead that would have been allocated for this job under the traditional method. Use the predetermined rate calculated in Sa and the direct labor costs from 12b
