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P4-45A (similar to) Question Help Pro Systems specializes in servers for work group, e-commerce, and enterprise resource planning (ERP) applications The company's original job cost system has two direct cost categories direct materials and direct labor Overhead is allocated to jobs at the single rate of $18 per direct labor hour. A task force headed by Pro's CFO recently designed an ABC system with four activities. The ABC system retains the current system's two direct cost categories. Thus, it budgets only overhead costs for each activity. Pertinent data follow Click on the icon to view ABC system data) Pro Systems has been awarded two new contracts that will be produced as Job A and Job 8 Budget data relating to the contracts follow Click the icon to view the contract information) Read the requirements Requirement 1. Compute the product cost per unit for each job using the original costing system (with two direct cost categories and a single overhead allocation rate) Job A Job B Direct materials Direct labor Overhead allocated Total cost Divide by number of units Product cost per unit Enter any number in the edit fields and then click Check Answer 6 parts Clear All Check Answer remaining P4-45A (similar to) Pro Systems specializes in servers for work-group. e-commerce, and enterprise resource planning (ERP) applications. The company's original job cost system has two direct cost categorie single rate of S18 per direct labor hour. Atask force headed by Pro's CFO recently designed an ABC system with four activities. The ABC system retains the current system's two direct cost Pertinent data follow (Click on the icon to view ABC system data) Pro Systems has been awarded two new contracts that will be produced as Job A and Job B. Budget data relating to the contracts follow Click the icon to view the contract information) Read the requirements Requirement 1. Compute the product cost per unt for each job using the onginal costing system (with two direct cost categories and a single overhead allocation rate) JobA Jobs 1 Data Table Data Table Job A Job B Number of parts 19,000 3,800 4 8 Allocation Base Cost Allocation Rate 1,900 200 $ Number of setups Number of assembling hours Number of shipments Total direct labor hours Number of output units Direct materials cost Director cost $ Activity Materials handling Machine setup Assembling Shipping 1 15.500 Number of parts Number of setups Assembling hours Number of shipments 130 520.00 90 00 1,000 s 100 10 $ 1,720.00 $ 241 000 S 180 000 $ 41,500 15.000 $ Print Done Type here to search O BI e a Oo pete P4-45A (similar to) Pro Systems specializes in servers for work-group, e-commerce, and enterprise resource planning (ERP) applications. The company's origina single rate of $18 per direct labor hour. A task force headed by Pro's CFO recently designed an ABC system with four activities. The ABC syste Pertinent data follow (Click on the icon to view ABC system data) Pro Systems has been awarded two new contracts that will be produced as Job A and Job B. Budget data relating to the contracts follow Click the icon to view the contract information) Read the requirements Requirement 1. Compute the product cost per unit for each job using the original costing system (with two direct cost categories and a single JobA Job B Direct materials Direct labor Overhead x Total cost 0 Requirements Divide by Product col using ABC 3. 1. Compute the product cost per unit for each job using the original costing system (with two direct cost categories and a single overhead allocation rate) 2. Suppose Pro Systems adopts the ABC system Compute the product cost per unit for each job Which costing system more accurately assigns to jobs the costs of the resources consumed to produce them? Explain A dependable company has offered to produce both jobs for Pro for $6,300 per output unit. Pro may outsource (buy from the outside company) Job A only, Job B only, or both jobs Which course of action will Pro's managers take if they base their decision on (a) the original system? (b) ABC system costs? Which course of action will yield more income? Explain 4. Enter any 6 parts remaini Clear All Type here to search
