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please help with explaination. A D E F GH Y Exercise 6- Manufacturing Company makes 3 products: A, B, and C. Shown below are the
please help with explaination.
A D E F GH Y Exercise 6- Manufacturing Company makes 3 products: A, B, and C. Shown below are the estimated costs and estimated production data for next year. Cost Pools Customer Service Design Storage Ordering & Receiving Packaging Supervision Total Estimated overhead $720,000 Overhead Cost Driver $240,000 $160,000 $80,000 $40,000 $120,000 $80,000 5 Customers 6 Modifications Square feet used Number of orders Number of units Number of employees 14 15 16 Prod A 60 15 1,000 60 6,000 3 Prod B 100 25 600 80 4,000 Prod C 40 10 400 20 2,000 1 Total 200 50 2,000 160 12,000 5 Customers Modifications 17 Square'teet used 18 Number of orders 19 Number of units Number of employees 20 21 22 23 Estimates By Product Sales Direct materials costs Direct labor costs Prod A $1,600,000 $640,000 $400,000 Prod B $1,520,000 $400,000 $480,000 Prod C $1,320,000 $4,440,000 $320,000 $720,000 Total 24 $1,360,000 $1,600,000 25 20 GH I Calculate ABC rates for each cost pool: 27 29 a) Customer Service 30 b) Design 31 c) Storage 32 d) Ordering & Receiving 33 e) Packaging 34 DSupervision per customer X per modificaton per sq. ft. per order per unit per employee X X X X X 35 Calculate the overhead assigned using ABC method: 36 37 Prod A Prod B Prod C d8 g) Customer Service 3 h) Design 40 i) Storage 41 D Ordering & Receiving 42 k) Packaging 43 1) Supervision 44 m) Total Overhead Assigned X X X XX XX XX XX XX X X X A 45 Calculate total cost & net profit using ABC method: Prod C Prod B Prod A 47 48 n) Total Cost (DM+DL+MO) 49 o) Net Profit XX XX 50 51 p) Calculate single plant-wide overhead rate: (assume the overhead allocation base is direct labor) X per DL$ 52 53 Calculate the following using the single plant-wide rate: 54 Prod B Prod A Prod C 55 56 q) Total Qverhead Assigned 57 r) Total Cost 58 s) Net Profit X. XX XX 59 50 Step by Step Solution
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