Waterways Continuing Problem This is a tination of the Waterways Polen from Charters through WCP Spirits were high at the monthly meeting of the top management of Waterways. Installation was proceeling nicely se te la jobs for the city, and the company has just received continuation that the local school boani had alcupted its bid to install irrigation systems in 25, school Pourvus Valores. 00 Ecuvas Celing WILL, Live vice-presiden vil installe.icu u Lisinin cin, was rouldel. Ile las ecupervising e cily julie suni de believes be currealyel afgerlesd vello low jobs cuee wol accurately tellset Lalu of vriend Several majur things have changed since we get toedrale al 20% of direct labour cus," Lee explained. "Tve noticed that the assiems are requiring a lot of the more expensive glue and they were designed to accomodale only titanium Casleners. We are using special parging to Les per le volens lo lle siles, al lo atention de new levy equipulle wedlu purchsce lo prepare le ground for Leistellation." Madison Tremblay, pier-president of sales and maricting, was quick ta respond. "I can't hele tint ya hesaggisting there's something wrong with car hids, be tooted. He was visibly omnoyed. This is the first time in several years that car sales group has been successful in increasing can markul sltare," he continued, 3d aww you want to mess with the pricing! I want you to explain that to the salespeople to have just received their first bonus commission cheques in a very long time." Ben Cars, to designed the new aystem, agreed with Madison, usting that maybe the probleme was not with the cost, but was more likely cast como Their accountant. Jordan Leigh, did not like conflict. Thase an idea," he said. "We have been investigating using a nne casting system in aur manufacturing factory called activity based costing, or ABC. ABC is upansed to lead to more accurate anerhard costing and it provides a hetter way to control overbed costs. Wi.laabtle work, I Link we could apli. Lo our installation services. We believed to do analysis and bring his recomendations back to the next genel lei, le rest of Le Grouped to wait for the results before taking any changes Javiens first action was to dentity and classifill the activities that come roses during this specific typeof installation imta number of cast pools, and the determine the overhead casts that should he assigned to cach cact pool. At the same time, la determina neret driver for each pool. The following table shows these rost incls along with the estimated anche allocation to each onc. Estimated Estininted Activity Cast Pools Cost Driver Overhead per activity Supervision, security, maintenance Number of workdays 845UUDU 1.00 Linbuilt Nubeoles 100,000 Hoo Equipment costs Hours of operation KID 12.XIO Indirect supplies and delivery Lengibile 250.000 250,000 Emplog henerita In laborat 1571. $ancon $1,040,00 Then, based on the information ased to prepare the bids, lordan determined that each of the project for the school board would require the following overhead activities. Activity Cast Perols Cast Drivers Estimated Use per Job Supervision, aurity maintenance Number of days ya Liability Lasurance Number oferiplovees Equipment act: Hour of operation 210 Indirect supplies and delivery Tergth in metres 3.XK Employee benelit Direct labour cost $12,000 The slecials cellue each pevjecHere expected to be $13,000 Instructions Calculale Le estimated cost of uslope of installation using boll Le laditional well and actively-based costing b.Civen the information calented parti), make a commendation to the management of Waterways as to what action they should take. 1. Explain way you think Waterways curreal bidding process would lead to increased cake stare. Waterways Continuing Problem This is a tination of the Waterways Polen from Charters through WCP Spirits were high at the monthly meeting of the top management of Waterways. Installation was proceeling nicely se te la jobs for the city, and the company has just received continuation that the local school boani had alcupted its bid to install irrigation systems in 25, school Pourvus Valores. 00 Ecuvas Celing WILL, Live vice-presiden vil installe.icu u Lisinin cin, was rouldel. Ile las ecupervising e cily julie suni de believes be currealyel afgerlesd vello low jobs cuee wol accurately tellset Lalu of vriend Several majur things have changed since we get toedrale al 20% of direct labour cus," Lee explained. "Tve noticed that the assiems are requiring a lot of the more expensive glue and they were designed to accomodale only titanium Casleners. We are using special parging to Les per le volens lo lle siles, al lo atention de new levy equipulle wedlu purchsce lo prepare le ground for Leistellation." Madison Tremblay, pier-president of sales and maricting, was quick ta respond. "I can't hele tint ya hesaggisting there's something wrong with car hids, be tooted. He was visibly omnoyed. This is the first time in several years that car sales group has been successful in increasing can markul sltare," he continued, 3d aww you want to mess with the pricing! I want you to explain that to the salespeople to have just received their first bonus commission cheques in a very long time." Ben Cars, to designed the new aystem, agreed with Madison, usting that maybe the probleme was not with the cost, but was more likely cast como Their accountant. Jordan Leigh, did not like conflict. Thase an idea," he said. "We have been investigating using a nne casting system in aur manufacturing factory called activity based costing, or ABC. ABC is upansed to lead to more accurate anerhard costing and it provides a hetter way to control overbed costs. Wi.laabtle work, I Link we could apli. Lo our installation services. We believed to do analysis and bring his recomendations back to the next genel lei, le rest of Le Grouped to wait for the results before taking any changes Javiens first action was to dentity and classifill the activities that come roses during this specific typeof installation imta number of cast pools, and the determine the overhead casts that should he assigned to cach cact pool. At the same time, la determina neret driver for each pool. The following table shows these rost incls along with the estimated anche allocation to each onc. Estimated Estininted Activity Cast Pools Cost Driver Overhead per activity Supervision, security, maintenance Number of workdays 845UUDU 1.00 Linbuilt Nubeoles 100,000 Hoo Equipment costs Hours of operation KID 12.XIO Indirect supplies and delivery Lengibile 250.000 250,000 Emplog henerita In laborat 1571. $ancon $1,040,00 Then, based on the information ased to prepare the bids, lordan determined that each of the project for the school board would require the following overhead activities. Activity Cast Perols Cast Drivers Estimated Use per Job Supervision, aurity maintenance Number of days ya Liability Lasurance Number oferiplovees Equipment act: Hour of operation 210 Indirect supplies and delivery Tergth in metres 3.XK Employee benelit Direct labour cost $12,000 The slecials cellue each pevjecHere expected to be $13,000 Instructions Calculale Le estimated cost of uslope of installation using boll Le laditional well and actively-based costing b.Civen the information calented parti), make a commendation to the management of Waterways as to what action they should take. 1. Explain way you think Waterways curreal bidding process would lead to increased cake stare