Please complete the last 4 questions in Excel
ACCT202: Accounting for Decision-Making II CASE ASSIGNMENT #1: Cortland Manufacturing, Ine. ACCT202: Accounting for Decision-MakingII CASE ASSIGNMENT #1: Cortland Manufacturing, Inc. REQUIRED Don't try to begin answening questions until you hove studied the cose information careully Carevess reading wiW result in careless errorsf Just toke o few extra minutes to understand it at 1. Calculate the predetermined overhead rate the company is currently using. fwhere should you Direct Material Direct labor $1,000 %2.500 look for the machine hoursi? 2. Using the Information from the exhibits and Q1, caloulate the manufacturing cost of ONE Cortland 1000 Calculate the seling price, under the current system, of ONE Cortand 1000 and ONE Cortiand 2000 Next, you are going to begin to analybe the ABC system In arder to do this, however, your study of Exhibies 2 and 3 should have told you that you are going to have to convert the information the company curmently measures into the information you need for the ABC analysis. First, how many raw material orders did the company receive for each model? and ONE Cortland 2000 Activity Cest driver Bgeted activity Ifor Budgeted cost Recelve/handle raw Orders received s. How many batches of each model did the company pack and ship? 2,000 setups 512.000,000 Adjust/set up machines Number of setups Inspect, pack, shio Butches each model? Calulate a rote for each activity in Exhibit 2 & Use the rates calculated in Q7 to apply overhead to each product line: Coreland 2000 and 2000. 0. Calculate the manufacturing cost of ONE Cortland 3000 and ONt Cortland 2000 using ABC 11. Show how the company would determine a selling price for each model under the ABC system aw materials Inspection hours Soldering hours 10,000,000 $12,000,000 200,000 insp. h Inspect r Solder parts Assemble computersAssembly hours Calculace the overhead per computer for a Cortiand 1000 and a Cortland 2000. 100,000assm, hr 12. Shouid Me. Works adopt an ABC syatem for internal analysis? Your answer should address the question wery specifically to this case-no generalities about ABC fhom the book It should contain Ewe points in favor of ABC and fwo drowbociles that he should be aware of 13. Mr. Works is aso concerned about future product development. They have several new modes under development at this time if an ABC system is uned, list two characteristics of a sew model will make it mscs cat to manufacture. "Received order size" is the number of computers one oder of raw materials w4 buld Thus, for (see above) the Cortland 1,000 Coleulation: 20,000 computers per year, divided by 10,000 computers each order will build 2 arders ACCT202: Accounting for Decision-Making II CASE ASSIGNMENT #1: Cortland Manufacturing, Ine. ACCT202: Accounting for Decision-MakingII CASE ASSIGNMENT #1: Cortland Manufacturing, Inc. REQUIRED Don't try to begin answening questions until you hove studied the cose information careully Carevess reading wiW result in careless errorsf Just toke o few extra minutes to understand it at 1. Calculate the predetermined overhead rate the company is currently using. fwhere should you Direct Material Direct labor $1,000 %2.500 look for the machine hoursi? 2. Using the Information from the exhibits and Q1, caloulate the manufacturing cost of ONE Cortland 1000 Calculate the seling price, under the current system, of ONE Cortand 1000 and ONE Cortiand 2000 Next, you are going to begin to analybe the ABC system In arder to do this, however, your study of Exhibies 2 and 3 should have told you that you are going to have to convert the information the company curmently measures into the information you need for the ABC analysis. First, how many raw material orders did the company receive for each model? and ONE Cortland 2000 Activity Cest driver Bgeted activity Ifor Budgeted cost Recelve/handle raw Orders received s. How many batches of each model did the company pack and ship? 2,000 setups 512.000,000 Adjust/set up machines Number of setups Inspect, pack, shio Butches each model? Calulate a rote for each activity in Exhibit 2 & Use the rates calculated in Q7 to apply overhead to each product line: Coreland 2000 and 2000. 0. Calculate the manufacturing cost of ONE Cortland 3000 and ONt Cortland 2000 using ABC 11. Show how the company would determine a selling price for each model under the ABC system aw materials Inspection hours Soldering hours 10,000,000 $12,000,000 200,000 insp. h Inspect r Solder parts Assemble computersAssembly hours Calculace the overhead per computer for a Cortiand 1000 and a Cortland 2000. 100,000assm, hr 12. Shouid Me. Works adopt an ABC syatem for internal analysis? Your answer should address the question wery specifically to this case-no generalities about ABC fhom the book It should contain Ewe points in favor of ABC and fwo drowbociles that he should be aware of 13. Mr. Works is aso concerned about future product development. They have several new modes under development at this time if an ABC system is uned, list two characteristics of a sew model will make it mscs cat to manufacture. "Received order size" is the number of computers one oder of raw materials w4 buld Thus, for (see above) the Cortland 1,000 Coleulation: 20,000 computers per year, divided by 10,000 computers each order will build 2 arders
