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please help with all the questions if possible. Thanks you!! Vaughn Skiffs manufactures three models of speedboats-Superior, Deluxe, and Ultra-which are sold through marine retail
please help with all the questions if possible. Thanks you!!
Vaughn Skiffs manufactures three models of speedboats-Superior, Deluxe, and Ultra-which are sold through marine retail stores. Budgeted information for the coming year is as follows. Superior Deluxe Ultra Total Sales revenue $60,495,000 $91,911,600 $108,622,800 $261,029,400 Direct matria 19,691,400 29,105,34042,630,440 91,427,180 Direct labor Overhead Gross profit 11,993,550 14,305,800 17,639,600 43,938,950 72,414,210 $53,249,060 Boats produced and sold Machine hours per boat Superior Deluxe Ultra 1,110 1,266 844 200 300 100 Currently, the company allocates overhead using a single predetermined rate based on machine hours. Irvin Vaughn is considering implementing an activity-based costing system. After studying the company's operations, he developed the following five activity cost pools. Activity Machining Machine setup and calibration Number of setups Quality inspections Materials receiving Materials requisitions Overhead Cost $14,817,600 25,786,540 15,207,570 6,560,000 10,042,500 $72,414,210 Cost Driver Machine hours Number of inspections Number of deliveries Number of requisitions Irvin also developed the following operating data for the coming year Superior Deluxe Ultra Boats per batch Quality inspections per batch Number of deliveries Number of requisitions 10 600 3,330 15 600 4,160 30 800 5,900 To ensure the highest level of production quality, all machines are set up and calibrated at the beginning of every batchStep by Step Solution
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