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The Alpine Ski Company manufactures 2 models of skis, the All Mountain for beginning skiers and the Avalanche for the more advanced skiers. The Company
The Alpine Ski Company manufactures 2 models of skis, the All Mountain for beginning skiers and the Avalanche for the more advanced skiers. The Company basic production information is as follows:
The Alpine Ski Company manufactures 2 models of skis, the All Mountain for beginning skiers and the Avalanche for the more advanced skiers. The Company basic production information is as follows: All Mountain Skis $92 51 390 4,000 units Avalanche Ski $ 115 Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month 75 615 9,000 units For its overhead, Alpine has studied where time and effort is spent by activity: Total Overhead QC inspection 5% 50% 30% Machine Product Set up 85% 20% 40% 20% hours 10% support Maintenance staff Engineering staff Factory line workers Factorv machine depreciation Total Overhead $ 74,200| 130,000 | 100.550 | 180,000 | 30% 10% 20% 80% $484,750 Alpine has compiled the following information about its cost drivers: All Mountain Avalanche # setups required # of inspections # of machine hours # of products 120 975 200 Total 146 1,000 26 675 800 1,650
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