task. TER 2. W 1 7: Eastern Chemical compony producine products. The Operating of the current year ore Product Sales Qucnhty Target Place Adwal Pace Difference . 1,600.00 8,000.00 (42.00) $26.00 $197.00 $ 1.00 306.60 2bb, bo 213. SO 321.00 3.107.50 800.00 at C Sell than lost money wants on much more believes The firm sets the target price of each product at ison of the product's total manufachning cost. It appears that the firm was able to Product c much higher price the target price of the produar i Product B. Tem Watson, CEO, to promote Product C aggressively 1 phase out Product B He that the nformation suggests that Product c has the greatest potential among the firms three products because the actual selling price of Product c was almost 50% higher than the targer price, while the firm was forced to sell Product . at price below the target price. Both the budgeted budgeted i actual factory overhed (for the current year are $747,300. The actual units sold for each also are the same as the budgeted with The firm uses direct laber dalaus to assign, manufacturing overhead costs. The ared materials I drect labor cost per unit for each product eltal, are; Direct materias Direct Labor Total prime cost Ine controllerooticed that out all products following usage of factory overhead Product Prod. B. Podc $61 $125.40 $31 $92 $92 5148.40 further neanganan, she identified the overhead similarly upon during the year; PRODA Prod B Prod 3 6 Weight of direct mais (puedes 411 261 361 Waste bazados dispone 36 56 4 400,000 Quality inspectors 41 46 46 86,000 uuties machine hes) 3,200 8,100 7 OCD Total $147,800 consumed factory Tot Number of setups $8,800 116.000 1,600 Required 1. Determine the manufacing cost per Lock for each of the products using the volume based method 2. What is the least profitable and the most profitable product inder both the current and ABC Systems! 3. What is the new target price for each product based a 1507 the new costs under the ABC system? Compare this price with the actual selling price task. TER 2. W 1 7: Eastern Chemical compony producine products. The Operating of the current year ore Product Sales Qucnhty Target Place Adwal Pace Difference . 1,600.00 8,000.00 (42.00) $26.00 $197.00 $ 1.00 306.60 2bb, bo 213. SO 321.00 3.107.50 800.00 at C Sell than lost money wants on much more believes The firm sets the target price of each product at ison of the product's total manufachning cost. It appears that the firm was able to Product c much higher price the target price of the produar i Product B. Tem Watson, CEO, to promote Product C aggressively 1 phase out Product B He that the nformation suggests that Product c has the greatest potential among the firms three products because the actual selling price of Product c was almost 50% higher than the targer price, while the firm was forced to sell Product . at price below the target price. Both the budgeted budgeted i actual factory overhed (for the current year are $747,300. The actual units sold for each also are the same as the budgeted with The firm uses direct laber dalaus to assign, manufacturing overhead costs. The ared materials I drect labor cost per unit for each product eltal, are; Direct materias Direct Labor Total prime cost Ine controllerooticed that out all products following usage of factory overhead Product Prod. B. Podc $61 $125.40 $31 $92 $92 5148.40 further neanganan, she identified the overhead similarly upon during the year; PRODA Prod B Prod 3 6 Weight of direct mais (puedes 411 261 361 Waste bazados dispone 36 56 4 400,000 Quality inspectors 41 46 46 86,000 uuties machine hes) 3,200 8,100 7 OCD Total $147,800 consumed factory Tot Number of setups $8,800 116.000 1,600 Required 1. Determine the manufacing cost per Lock for each of the products using the volume based method 2. What is the least profitable and the most profitable product inder both the current and ABC Systems! 3. What is the new target price for each product based a 1507 the new costs under the ABC system? Compare this price with the actual selling price
