1. (25% Marks) Determine the unit costs and total unit cost for the crankshaft if 12,000 units were produced instead of 8,000) and compare the results (costs and profits) to the previous (for 8000) total and unit costs given in Tables 3.4 and 3.5. Assume all other values remain the same as in Tables 3.3, 3.4, and 3.5. Table 3.3. Cost data for overhead evaluations for an automotive metal casting facility Casting Products Produced Odlems Overhead Crew E T Total OH OH Rate Purchase Ondien 120 000 100 000 Manding of Me HoMed 2000 2000 2000 200 Uy Cats Hous 1562 The Unit cost determination Casting Padaterad Cum Rex E T Total OH OH M od Activity Cow S unil O 0 000 SHES 10 75 Dubben LODD .000 200 1 2000 Ulary C Mach 3000 3000 0 0 0 Direct Unit Couts and webcad Active Directly Related Products Pro C AM DM0020 Duet La 10211 52 PurchaOH Sunt 0.177 2.100 1672 0635 Material Handling Sun 0.211 1.750 Depui s 2 25.000 1435 Machine Utility 0211 2009 Total De Co u nt 254 7950514 Table 3.5: Total product cost using different time basis Die Lalafo Basury and d m Caus Crank Rew F M TDC 5 14 FOHOL MOHON 16155 Med HOH and Face OC TC 12.00 Total Machine plus L B F r O P for C 35.000 15 ie Overhead Costs Remul Exhaust Me 51.41 16.155 12 TDC T rade C Selling Table 3.3: Cost data for overhead evaluations for an automotive metal casting facility Casting Products Produced Crank Rear Exhaust Piston shaft Axel Manifold Total of Total OHO Activity Cost 1,000 56,000 R nit) u 56 120 200 2,000 300 350 4,000 200 450 2,000 380 400 2,000 1,400 56,000 40 10,000 500,000 Overhead Item Cost Driver Activity #of Purchase Orders Orders Material Handling #of Moves Depreciation # of Machine Expense Hours # of Machine Utility Costs Hours Factory Expenses Administrtive Expenses Total Expenses 2,000 4,000 2,000 2,000 10,000 40,000 500,000 400,000 1,552,000 Table 3.4: Unit cost determination Total of Total OH OH Rate Activity Cost-S (5/unit) 13,000 10,000 520,000 40,000 Casting Products Produced Production Data Crank Rear Exhaust Piston shaft Axel Manifold Production Units 38,000 8,000 6,700 34,000 Selling Price: $/unit 10 132 75 2 3 Direct Labor: hours 1,000 5,000 2,000 5,000 Utility Cost: Machine hours 2,000 4,000 2,000 Direct Unit Costs and Overhead Activities Directly Related to Products Crank Rear Exhaust Production Costs Piston shaft Axel Manifold Direct Materials S/unit 4.000 32.000 19.000 6.000 Direct Labor S/unit 1.053 25.000 11.940 5.882 Purchase OH S/unit 0.177 2.100 1.672 0.626 Material Handling S/unit 0.211 1.750 2.687 0.471 Depreciation Expenses S/unit 2.632 25.000 14.925 2.941 Machine Utility S/unit 0.211 2.000 1.194 0.215 Total Direct Costs S/unit 8.284 87.850 51.418 16.155 Table 3.5: Total product cost using different time basis Direct Lahar Hlour Basis for Factory and Administrative Overhead Unit Cost Piston Crankshaft Rear Axel Exhaust Manifold Total Direct Costs S/unit 8.284 87.850 51.418 16.155 Factory OH S/unit 1.012 24.038 11.481 5.656 Administrative OH 0.810 19.231 9.185 4.525 Total Product Cost S/unit 10.106 131.119 72.084 26.336 Selling Price S/unit 10.000 132.000 75.000 23.000 Product Profit/Loss Sunit -0.106 0.881 2.916 -3.336 Machine Hour OH Basis for Factory and Administrative Overhead Unit Costs Piston Crankshalt Rear Axel Exhaust Manifold Total Direct Costs S/unit 8.284 87.850 51.418 16.155 Factory OH S/unit 2.632 25.000 14.925 2.941 Administrative OH S /unit 2.105 20.000 11.940 2.353 Total Product Cost S/unit 13.021 132.850 78.284 21.449 Selling Price S/unit 10.000 132.000 75.000 23.000 Product Profit/Loss S/unit -0.850 -3.284 1.551 Total of Machine plus Labor Hour OH Basis for Factory and Administrative Overhead Unit Costs Piston Crankshaft Rear Axel Exhaust Manifold Total Direct Costs S/unit 8.284 87.850 | 51.418 16.155 Factory OH S /unit 1.716 24.457 1 2.979 4.476 Administrative OHS /unit 1.373 19.565 10.383 3.581 Total Product Cost S/unit 11.373 131.872 24.212 S/unit 10.000 132.000 75.000 Product Profit/Loss S/unit -1.373 0.128 0 .221 -1.212 -3.021 74.779 1. (25% Marks) Determine the unit costs and total unit cost for the crankshaft if 12,000 units were produced instead of 8,000) and compare the results (costs and profits) to the previous (for 8000) total and unit costs given in Tables 3.4 and 3.5. Assume all other values remain the same as in Tables 3.3, 3.4, and 3.5. Table 3.3. Cost data for overhead evaluations for an automotive metal casting facility Casting Products Produced Odlems Overhead Crew E T Total OH OH Rate Purchase Ondien 120 000 100 000 Manding of Me HoMed 2000 2000 2000 200 Uy Cats Hous 1562 The Unit cost determination Casting Padaterad Cum Rex E T Total OH OH M od Activity Cow S unil O 0 000 SHES 10 75 Dubben LODD .000 200 1 2000 Ulary C Mach 3000 3000 0 0 0 Direct Unit Couts and webcad Active Directly Related Products Pro C AM DM0020 Duet La 10211 52 PurchaOH Sunt 0.177 2.100 1672 0635 Material Handling Sun 0.211 1.750 Depui s 2 25.000 1435 Machine Utility 0211 2009 Total De Co u nt 254 7950514 Table 3.5: Total product cost using different time basis Die Lalafo Basury and d m Caus Crank Rew F M TDC 5 14 FOHOL MOHON 16155 Med HOH and Face OC TC 12.00 Total Machine plus L B F r O P for C 35.000 15 ie Overhead Costs Remul Exhaust Me 51.41 16.155 12 TDC T rade C Selling Table 3.3: Cost data for overhead evaluations for an automotive metal casting facility Casting Products Produced Crank Rear Exhaust Piston shaft Axel Manifold Total of Total OHO Activity Cost 1,000 56,000 R nit) u 56 120 200 2,000 300 350 4,000 200 450 2,000 380 400 2,000 1,400 56,000 40 10,000 500,000 Overhead Item Cost Driver Activity #of Purchase Orders Orders Material Handling #of Moves Depreciation # of Machine Expense Hours # of Machine Utility Costs Hours Factory Expenses Administrtive Expenses Total Expenses 2,000 4,000 2,000 2,000 10,000 40,000 500,000 400,000 1,552,000 Table 3.4: Unit cost determination Total of Total OH OH Rate Activity Cost-S (5/unit) 13,000 10,000 520,000 40,000 Casting Products Produced Production Data Crank Rear Exhaust Piston shaft Axel Manifold Production Units 38,000 8,000 6,700 34,000 Selling Price: $/unit 10 132 75 2 3 Direct Labor: hours 1,000 5,000 2,000 5,000 Utility Cost: Machine hours 2,000 4,000 2,000 Direct Unit Costs and Overhead Activities Directly Related to Products Crank Rear Exhaust Production Costs Piston shaft Axel Manifold Direct Materials S/unit 4.000 32.000 19.000 6.000 Direct Labor S/unit 1.053 25.000 11.940 5.882 Purchase OH S/unit 0.177 2.100 1.672 0.626 Material Handling S/unit 0.211 1.750 2.687 0.471 Depreciation Expenses S/unit 2.632 25.000 14.925 2.941 Machine Utility S/unit 0.211 2.000 1.194 0.215 Total Direct Costs S/unit 8.284 87.850 51.418 16.155 Table 3.5: Total product cost using different time basis Direct Lahar Hlour Basis for Factory and Administrative Overhead Unit Cost Piston Crankshaft Rear Axel Exhaust Manifold Total Direct Costs S/unit 8.284 87.850 51.418 16.155 Factory OH S/unit 1.012 24.038 11.481 5.656 Administrative OH 0.810 19.231 9.185 4.525 Total Product Cost S/unit 10.106 131.119 72.084 26.336 Selling Price S/unit 10.000 132.000 75.000 23.000 Product Profit/Loss Sunit -0.106 0.881 2.916 -3.336 Machine Hour OH Basis for Factory and Administrative Overhead Unit Costs Piston Crankshalt Rear Axel Exhaust Manifold Total Direct Costs S/unit 8.284 87.850 51.418 16.155 Factory OH S/unit 2.632 25.000 14.925 2.941 Administrative OH S /unit 2.105 20.000 11.940 2.353 Total Product Cost S/unit 13.021 132.850 78.284 21.449 Selling Price S/unit 10.000 132.000 75.000 23.000 Product Profit/Loss S/unit -0.850 -3.284 1.551 Total of Machine plus Labor Hour OH Basis for Factory and Administrative Overhead Unit Costs Piston Crankshaft Rear Axel Exhaust Manifold Total Direct Costs S/unit 8.284 87.850 | 51.418 16.155 Factory OH S /unit 1.716 24.457 1 2.979 4.476 Administrative OHS /unit 1.373 19.565 10.383 3.581 Total Product Cost S/unit 11.373 131.872 24.212 S/unit 10.000 132.000 75.000 Product Profit/Loss S/unit -1.373 0.128 0 .221 -1.212 -3.021 74.779