As the overhead cost per unit of Part #127 is less as per Activity Based Costing by approx $6.10 per unit which will bring down our production cost to approx $15 which will make feasible for us to sell the part at the market competitive price of $20. As per Activity Based costing our production price of Part #234 will increase by approx $31 which will make it non feasible to sell this product even after increasing selling price by 25%.
There is no 1 or 2, only 3-5 Problem 4.34 Product-Costing Accuracy, Corporate Strategy, ABC Autotech...
Product-Costing Accuracy, Corporate Strategy, ABC Autotech Manufacturing is engaged in the production of replacement parts for automobiles. One plant specializes in the production of two parts: Part #127 and Part #234. Part #127 produced the highest volume of activity, and for many years it was the only part produced by the plant. Five years ago, Part #234 was added. Part #234 was more difficult to manufacture and required special tooling and setups. Profits increased for the first three years after...
There is no 1 or 2, only 3-5 Problem 4.34 Product-Costing Accuracy, Corporate Strategy, ABC Autotech Manufacturing is engaged in the production of replacement parts for automobiles. One plant specializes in the production of two parts: Part #127 and Part #234, Part #127 pro- duced the highest volume of activity, and for many years it was the only part produced by the plant. Five years ago, Part #234 was added. Part #234 was more difficult to manufacture and required special...
Hello, If anyone can help me I will grestly appreciate it! I will also give a thumbs up! Autotech Manufacturing is engaged in the production of replacement parts for automobiles. One plant specializes in the production of two parts: Part 127 and Part 234. Part 127 produces the highest volume of activity, and for many years it was the only part produced by the plant. Five years ago, Part 234 was added. Part 234 was more difficult to manufacture and...
Scenario Cartech Manufacturing is engaged in the production of replacement parts for automobiles. One plant specializes in the production of two parts: Part 271 and Part 342. Part 271 produces the highest volume of activity, and for many years it was the only part produced by the plant. Five years ago, Part 342 was added. Part 342 was more difficult to manufacture and required special tooling and setups. Profits increased for the first three years after the addition of the...
Product Costing: Department Versus ABC for Overhead Advertising Technologies, Inc. (ATI) specializes in providing both published and online advertising services for the business marketplace. The company monitors its costs based on the cost per column inch of published space printed in print advertising media and based on the cost per minute of telephone advertising time delivered on "The AD Line," a computer-based, online advertising service. ATI has one new competitor, Tel-a-Ad, in its local teleadvertising market; and with increased competition,...
Cost Accounting Assignment 1 Fellco Manufacturing Fellco Manufacturing produces replacement parts for motorcycles. They specialize in the production of Part 240 and Part 390. Part 240 is the highest volume of the two and for many years was the only part the company produced. Four years ago, Part 390 was added. Part 390 is much more difficult to manufacture and requires special tooling and setups. Profits were on the rise for the first two years after the addition of Part...
Product Costing: Department Versus ABC for Overhead Advertising Technologies, Inc. (ATI) specializes in providing both published and online advertising services for the business marketplace. The company monitors its costs based on the cost per column inch of published space printed in print advertising media and based on the cost per minute of telephor advertising time delivered on "The AD Line," a computer-based, online advertising service. ATI has one new competitor, Tel-a-Ad, in its local teleadvertising market; and with increased competition, ATI...
Barnes Boards produces skateboard parts for six different major US skateboard manufacturers. Barnes specializes in the production of trucks, which attach the skateboard wheels to the skateboard deck and allow the rider to turn the skateboard. Barnes Boards' trucks are made primarily of molded aluminum. Currently, Barnes Boards produces two different types of trucks: The 700 and the 775. The 700 has the highest sales and for many years was the only truck produced by Barnes Boards. As a result of the...
Name Section Alphabetical Number Week #5- Chapter 4 Homework Assignment Problem 1 (Supplemental Problem #1 )-Tradition al Costing versus Activity-based Costing You have been hired by Casson Manufacturing to assess and make recommendations for the profitability of its Bobbichead line of products. Casson Manufacturing makes two tvpes of Pistol Pete Bobbleheads. The Huge Bobblehead is 15 feet tall and is sold as a lawn ornament. The Tiny Bobblehead is 15 centimeters tall and is sold as a jewelry apparel item....
3. Using activity-based costing, calculate the total amount that each of the two product lines will contribute toward covering fixed costs and profit in 20x1. Manchester Technology, Inc. manufactures several different types of printed circuit boards; however, two of the boards account for the majority of the company's sales. The first of these boards, a television circuit board, has been a standard in the industry for several years. The market for this type of board is competitive and price-sensitive. Manchester...