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Score: 0.29 of 1 pt 2 of 4 (2 complete) HW Score: 32.14%, 1.29 of 4 pts % FAM3-B1 (similar to) Question Help 0 Compute
Score: 0.29 of 1 pt 2 of 4 (2 complete) HW Score: 32.14%, 1.29 of 4 pts % FAM3-B1 (similar to) Question Help 0 Compute the estimated support costs of two typical circuit boards using the traditional markup and the activity analysis results. Carlson Technology, an Idaho manufacturer of printed circuit boards, has always estimated the support cost of its circuit boards with a 100% "markup" over its material costs. An activity analysis suggests that support costs are driven primarily by the number of manual operations performed on each board, estimated at $6 per manual operation. Consider the estimated support costs of the following two typical circuit boards using the traditional markup and the activity analysis results: Board Z15 Board Q52 Markup method $ 46 $ 69 Activity analysis method $ 108 $ 30 Board Z15 Board Q52 Material cost $ 46.00 $ 69.00 Manual operations 18 5 The support costs are different because cost behavior is assumed by the two methods. If the activity analyses are reliable, then boards with few manual operations are with the markup method, and boards with many manual operations are with the markup method. Requirement 1. Compute the estimated support costs of two typical circuit boards using the traditional markup and the activity analysis results. Why are the cost estimates different? Activity analysis The support costs are different because the two methods. If the activity analyses operations are with them manual operations are cost behavior is assumed by pards with few manual different boards with many nod. the same wi The support costs are different because cost behavior is assumed by the two methods. If the activity analyses are reliable, then boards with few manual operations are with the markup method, and boards with many manual operatic with the markup method. overcosted undercosted The support costs are different because cost behavior is assumed by the two methods. If the activity analyses are reliable, then boards with few manual operations are with the markup method, and boards with many manual operations are with the markup method. overcosted undercosted
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