Question

can someone please explain this problem in detail? step by step?

PROBLEM 6 GIVEN: SINGLE DRIVER INFORMATION MFG O/H MFG O/H ALLOCATED TO PRODUCT A MFG O/H ALLOCATED TO PRODUCT B DRIVER 162,000 105,300 56,700 DLHRS ABC INFORMATION MFG O/H POOL # 1 DRIVER 75,000 DLHRS MFG O/H POOL # 2 DRIVER PRODUCT A MH PRODUCT B MH M/H 870 2,030 REQUIRED: DETERMINE ADDITIONAL O/H ALLOCATED TO PRODUCT B PRODUCT A PRODUCT B TOTAL POOL # 1 POOL # 2 48,750 26,100 26,250 60,900 75,000 87,000 TOTAL USING ABC 74,850 87,150 162,000 TOTAL USING SINGLE DRIVER 105,300 56,700 162,000 CHANGE (30,450) 30,450

Answer 1

Activity based cosbing step: ) allocation of manufachoring oveon heads (MFG o/H) in fosimation. based Cost doivea Bingle on MFG 0/H 162,000 allo cated to amount is This besed on diaect lebous houry . poro du ct A Ee B amount of MFG o/# allocated to pro duct A = 105 300 product B= 56 700 -> 162000 step: a allo cation of MFG 0/H bajed on ABC analysis TDtal MFG olH= 162000 (75000) () MFG OH (peol; 1) = 87000 MFG o/H (poliz)

Step: 3 pool: 1 peivesn = dimect labour hours (DLMRS). = 75000 gince infoamation about numbea digect ebou houas is absent, we pool : 1 allocati can the follocoing mannes. In Step:), G gingle cost deiven Cie, DLHPS) is algeady done allocating MFG OlH using is which in poro por hen of 105300: 56700 beki en puo duct A Ec B resgechvely. l05300 pooduct. A= 75o00 X = 48750 MFG 0/H 162000 750o00 Y 56700 product. B = 26 250 162000 slep. 34 87000 pool:-2 = havar (m/ H). Doùvens machine machine housy cmlH) > paoduct A- -> ploduct B = fot al 870 2030 2900 based on machine hou allo cation of mFG olH > podu ce A= 87000 x 87 26100 %3D ৪৭০০ 8 to00 x pocaduct B= 203o G0900 -> 2900

step:- 5 Cal culation additional to producti B allo cated ovea heads by using ABC analysis pankeulary Tot al pool 1 (sep: 3) 26a50 48750 75000 pool : 2 (3lepi u) 26100 87000 60900 ABC allocation 87150 74850 162000 56700 [05300 Siogle dsivea allocation 1620000 change 304 30450 is to A BC analysis $30450 io addition bo be allo cated which 56700 8ingle doiver E by wing is allo cate d 8ystem