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leading so improved proles ond operatog pextormenceFox AC systens to la fectve, everyone in the company-from top monegenent to opeiatng perorel must view them as cod monogement tools eohee foon as acountng ooks To uchiwe his objective, the accounting or financa deporment mad relnquish owrernlip ol these AC is udlitely to ucceedWhie rodtionol systems are the property f accousteg and ore used to suppoit the financil accountng process, veccesshl AMC syvens owned by the lnctions ond are designed to uppoit the reecs of coat monogenent, eot fnoncial accounting. The rwuh n a reducton in he role of accouring in he managemere of costs INSou mpanies 'hon implemem ABC systems-them in parolel to their financial accouning system Parofel sydems venove the rik od compromising he cos managenent capobties of ABC to occonmodase financid ure accouring ules and regulations EXTENDED ANALYSIS AND INTERPRETATION PROBLEM AIP 3.10 Pilot Plan The Bion Compony hos o Reseorch and Development RADy building thot is shored by free wire ond cable groups High Voltoge, Medium Vohage, and low Vologe. Adjocent to the R&D building is o pilol plant, a small scale production focily designed for Imted runs of espermel and conmerciol products. The three groups rely on the pilot plont to produce somples of their formulations In the pilat plont, sample sizes vary from obout 1,000 kilogroms to 10,000 kilograms. The R&D groups, inckding the pilot plant, ore run as cod centers. The pilot plont oso takes or special production runs for externol customers that ore too smal for a regular plond. The pilot plant consishs of tree combinotion blending/estruding machines, which produce pellets af compounded moterial. Unlike large commercial compounding machines, which con operale 24 hours/day, these machines are run for approximately 1,000 hours a yeor In the post, the piot plant has costed its jobs bosed on direct moterials, variable mochine sime, and alocated overheod. Overhead is allocated by machine time. A single plant wide mochine tale is colculoted pooling all three mochines. The owerheod poal includes plant fixed costs plos the labor cost of the department Approximately 20 percent of the machine technicions' time is spent perlorming general clean up and moinlenance. Before eoch job, machine time is calculiated by a computer program, which outputs feed rate and sel up parameters. Each product is scheduled to a specilic mochine based on its formulation. The cost schedule of each mochine is shown below. Copacity represents the historic annuol average capocity leading so improved proles ond operatog pextormenceFox AC systens to la fectve, everyone in the company-from top monegenent to opeiatng perorel must view them as cod monogement tools eohee foon as acountng ooks To uchiwe his objective, the accounting or financa deporment mad relnquish owrernlip ol these AC is udlitely to ucceedWhie rodtionol systems are the property f accousteg and ore used to suppoit the financil accountng process, veccesshl AMC syvens owned by the lnctions ond are designed to uppoit the reecs of coat monogenent, eot fnoncial accounting. The rwuh n a reducton in he role of accouring in he managemere of costs INSou mpanies 'hon implemem ABC systems-them in parolel to their financial accouning system Parofel sydems venove the rik od compromising he cos managenent capobties of ABC to occonmodase financid ure accouring ules and regulations EXTENDED ANALYSIS AND INTERPRETATION PROBLEM AIP 3.10 Pilot Plan The Bion Compony hos o Reseorch and Development RADy building thot is shored by free wire ond cable groups High Voltoge, Medium Vohage, and low Vologe. Adjocent to the R&D building is o pilol plant, a small scale production focily designed for Imted runs of espermel and conmerciol products. The three groups rely on the pilot plont to produce somples of their formulations In the pilat plont, sample sizes vary from obout 1,000 kilogroms to 10,000 kilograms. The R&D groups, inckding the pilot plant, ore run as cod centers. The pilot plont oso takes or special production runs for externol customers that ore too smal for a regular plond. The pilot plant consishs of tree combinotion blending/estruding machines, which produce pellets af compounded moterial. Unlike large commercial compounding machines, which con operale 24 hours/day, these machines are run for approximately 1,000 hours a yeor In the post, the piot plant has costed its jobs bosed on direct moterials, variable mochine sime, and alocated overheod. Overhead is allocated by machine time. A single plant wide mochine tale is colculoted pooling all three mochines. The owerheod poal includes plant fixed costs plos the labor cost of the department Approximately 20 percent of the machine technicions' time is spent perlorming general clean up and moinlenance. Before eoch job, machine time is calculiated by a computer program, which outputs feed rate and sel up parameters. Each product is scheduled to a specilic mochine based on its formulation. The cost schedule of each mochine is shown below. Copacity represents the historic annuol average capocity