Refer to Willow Company

Compute for the profit per unit for the Deluxe Model using ABC

Activity Chat < All teams Teams CA1 (BSA-2A) AE 214 Assignments B Calendar Calls General - Files Apps Help Q Q Search General Posts Files Fill | 2A-AE 214-Final ... 15 more New C Compute for the profit per unit for the Basic Model using ABC. Willow Company produces lawnmowers. One of its plants produces two versions of mowers: a basic model and a deluxe model. The deluxe model has a sturdier frame, a higher horsepower engine, a wider blade, and mulching capability. At the beginning of the year, the following data were prepared for this plant: (3 Points) Basic Model Deluxe Model Additionally, the following overhead Expected quantity 40,000 20,000 activity costs are reported: Selling price $180 $360 Maintaining equipment $114,000 Prime costs $80 $160 Engineering support 120,000 Machine hours 5,000 5,000 Materials handling ? Direct labor hours 10,000 10,000 Setting up equipment 96,000 Basic Model Deluxe Model Purchasing materials 60,000 Engineering support (hours) Receiving (orders processed) 1,500 250 4,500 500 Receiving goods 40,000 Paying suppliers 30,000 Materials handling (number of moves) 1,200 4,800 Purchasing (number of requisitions) 100 200 Providing space Total 20,000 $ ? Maintenance (hours used) 1,000 3,000 Paying suppliers (invoices processed) Setting up equipment (number of setups) 250 500 16 64 L Facility-level costs are allocated in proportion to machine hours (provides a measure of time the facility is used by each product). Materials handling uses three inputs: two forklifts, gasoline to operate the forklift, and three operators. The three operators are paid a salary of $40,000 each. The operators spend 25 percent of their time on the receiving activity and 75 percent on moving goods (materials handling). Gasoline costs $3 per move. Depreciation amounts to $6,000 per forklift per year. >>) ENG 12:05 pm 25/01/2021