ZuoTi.Pro
Question

(Home assignment #1 based on the Richards book, Chapter 12, Warehouse Costs.) Exercise 3. Activity-based vs. traditional costing Please use table 12.4 on page 355 of the Richards book for this exercise. Assume that it represents an accurate picture of costs in the warehouse by customer based on activities. Now lets compare it to traditional costing. 8. If under traditional costing all management overhead A were allocated only to storage space (number of pallets) and not to handling cost drivers (labor and MHE), which customer would be getting the most free ride (the highest number of free, unpaid management hours)? 9. How many free management hours would that customer get? 10. Which customer would be the most disadvantaged (the highest number of paid unused management hours)? 11. How many management hours would that customer pay for and not use?
Table 12.4


TABLE 124 Example ABC model Space Labour MHE (no of (no of No. of Administration Management BOther pallets) hours) hours hours 10,000 120,000 30,000 10,000 hours 20,000 hours 100% pallets hours hours 2,000 20,000 5,000 Overhead A Overhead hours costs Total capacity CustomerA Customer B Customer C Customer D Customer E Customer F 500 200 200 100 1000 1,400 25000 8,000 2,000 900 18,000 4500 2,500 2,300 21800 3,000 1500 1,000 12,000 1900 1,000 1500 18000 5000 1,000 1,000 2,000 3,500 5,000 1,000 500 4,000 5% 10% 20% 25% 15% 10% leeway/unproductive hours Unused capacity 700 5000 2,500 500 3,000 15% Thg-above hours can be further broken down into the individual activities within the warehouse and the costs allocated by customer. These costs can then be compared to the actual charges levied to the customer and any shortfall examined. We can also calculate the total handling and storage cost per
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

foyhl 500o om Total Annual aigs $ 20poo back pefod M39000 yrs 9 ให้norMu ROI (Rehm onoced) 80% 15

0 0
Add a comment
Know the answer?
Add Answer to:
Table 12.4 (Home assignment #1 based on the Richards book, Chapter 12, "Warehouse Costs.) Exercise 3....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Table 12.4 page 355 is below Subtitie 2 5 HA1-chapter12 (Home assignment #1 based on the...

    Table 12.4 page 355 is below Subtitie 2 5 HA1-chapter12 (Home assignment #1 based on the Richards book, Chapter 12, warehouse costs") Exercise 3. Activity-based vs. traditional costing Please use table 12.4 on page 355 of the Richards book for this exercise. Assume that it represents an accurate picture of costs in the warehouse by customer based on activities. Now let's compare it to traditional costing. 8. If under traditional costing all management overhead A were allocated only to storage...

  • HA1 – R12

    Exercise 3. Activity-based vs. traditional costingPlease use table 12.4 on page 286 of the Richards book for this exercise. Assume that it represents an accurate picture of costs in the warehouse by customer based on activities. Now let’s compare it to traditional costing.8. If under traditional costing all management overhead A were allocated only to storage space (number of pallets) and not to handling cost drivers (labor and MHE), which customer would be getting the most “free ride” (the highest number of free,...

  • HA1- chapter12 (Home assignment #1 based on the Richards book, Chapter 12, warehouse costs") Exercise 2....

    HA1- chapter12 (Home assignment #1 based on the Richards book, Chapter 12, warehouse costs") Exercise 2. Overhead A 3PL warehouse provides contract services to 3 customers: A, B and C. The direct annual costs of the whole warehouse are as follows: Space $2,000,000 Labor $800,000; [MHE (material handling equipment)-$200,000. Total overhead is $600,000. There is space for 10,000 pallet locations split between the customers as follows: A- 50%iB-25%, and C-2596. The total labor hours per year are 50,000; they are...

  • Hi HA1-R12 (Home assignment #1 based on theRIchärdsbookOhipterawmarehouseoostn Calculate answers to all the questions below. Then...

    Hi HA1-R12 (Home assignment #1 based on theRIchärdsbookOhipterawmarehouseoostn Calculate answers to all the questions below. Then go to Assessments Quizzes on Western Online and enter the answers into HA1-R12. Each answer is worth 2 points. You will have two attempts. Exercise 1. RO A warehouse manager is considering purchasin g an electric forklift for loading/unloading and handling of pallets on the dock, the operations that are currently performed with a hand pallet truck. The cost of a forklift is $20,000...

  • need help with exercise 1 parts 1-3 Exercise Oro Company has two departments with the following...

    need help with exercise 1 parts 1-3 Exercise Oro Company has two departments with the following production data. It has historically used a single-plant-wide overhead rate based on direct labor cost Welding Fabrication Manufacturing overhead cos $ 120,000 $ 180,000 Direct labor cost $ 25,000 $ 6,250 Direct labor hours 2,500 625 Machine hours 100 2,000 a) Single Plant-Wide Overhead Rate Compute departmental overhead rates. Assume welding applies overhead using direct labor hours and fabrication using machine hours. b) Departmental...

  • Exercise 4-7 Contrast ABC and Conventional Product Costs (L04-2, L04-3, L04-4) Kunkel Company makes two products...

    Exercise 4-7 Contrast ABC and Conventional Product Costs (L04-2, L04-3, L04-4) Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon $ 10.00 $ 7.00 1.40 1,000 Wurcon $ 7.00 $ 10.00 6.80 2,000 These products...

  • Exercise 5-28 Activity-Based Costing [LO 5-2,5-3] Hakara Company has been using direct labor costs as the...

    Exercise 5-28 Activity-Based Costing [LO 5-2,5-3] Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $22.86 per unit, while product B has been assigned $7.39 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Cost Pools Machine setup Materials handling...

  • Exercise 4-7 Contrast ABC and Conventional Product Costs (L04-2, LO4-3, LO4-4) Kunkel Company makes two products...

    Exercise 4-7 Contrast ABC and Conventional Product Costs (L04-2, LO4-3, LO4-4) Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon $ 15.00 $ 5.00 @.50 2,000 Wurcon $12.00 $ 7.00 6.25 4,000 These products are...

  • just help with D units 100 runs Problem B Sunshield Company makes three types of sunglasses:...

    just help with D units 100 runs Problem B Sunshield Company makes three types of sunglasses: Nerds, Stars, and Fashions Sunshield presently allocates overhead to products using a rate based on direct labor-hours. A consultant recommended that Sunshield switch to activity-based costing. Management decided to give ABC a try and identified the following activities, cost drivers, and costs for a typical year for each activity center. Use this information to compute the overhead rates for each cost driver. Activity Recommended...

  • Exercise 4-7 Contrast ABC and Conventional Product Costs (L04-2, L04-3, L04-4] Kunkel Company makes two products...

    Exercise 4-7 Contrast ABC and Conventional Product Costs (L04-2, L04-3, L04-4] Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon $ 8.00 $ 13.00 0.40 4,000 Wurcon $ 6.00 $ 16.00 2.80 8,000 These products...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT