HA1 – R12
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%; B – 25%, and C – 25%. The total labor hours per year are 50,000; they are split between the customers as follows: A – 50%; B – 40%, and C – 10%. MHE is used to serve the customers in the same proportions as labor.
3. What is the rate of overhead in percent?
4. What is the average warehouse labor rate per hour with overhead in dollars and cents?
5. What is the share of customer B in total overhead contribution as a percentage?
6. What is the amount in total overhead contribution of customer A in dollars?
7. How much overhead in dollars will remain undistributed if customer C reduces its storage needs by 20% and handling (i.e. labor and MHE use) by 10%.
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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...
HA1 – R12
Exercise 5. Charging for storage and handlingPlease use table 12.5 on p. 288 of the Richards book for this exercise without any changes given in exercise 4. Assume that the cost of one pallet storage is $10 per week, inbound (intake) handling is $2.50 per pallet and the cost of outbound handling (dispatch) is $4.00 per pallet. All overhead is applied at a rate of 20% to both storage and handling. Assume the week consists of seven days, Monday through...
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,...
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...
Table 12.4 (Home assignment #1 based on the Richards book, Chapter 12, "Warehouse Costs.) Exercise 3....
Table 12.4
(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 space (number of pallets) and not to handling...
Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50...
Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $212,000 Direct materials $2,000,000 Selling expenses- variable 480,000 Selling expenses- fixed 330,000 Administrative expenses-variable 50,000 Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed 28,000 90,000 350,000 Administrative expenses-fixed 280,000 Prepare a CVP income statement for 2020 based on management's estimates. SHERIDAN...
A.) B/C.) D/E.) Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is...
A.)
B/C.)
D/E.)
Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $2,000,000 480,000 330,000 350,000 280,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $212,000 50,000 28,000 90,000 Prepare a CVP income statement for 2020 based on management's estimates....
Best company supplies furniture to three local retailers, Danny, Penner, and Victor Inc. The following exhibit...
Best company supplies furniture to three local retailers, Danny, Penner, and Victor Inc. The following exhibit presents representative revenues and costs of Best by customers for the year 2019. Additional information on Best's costs for different activities at various levels of the cost hierarchy is as follows: Danny $540,000 370,000 47,000 Penner $340,000 220,000 20,000 Victor $450,000 380,000 37,000 Total $1,330,000 $970,000 $104,000 Sales Cost of goods sold Materials-handling labour Materials-handling equipment (Cost written off as amortization) Rent Marketing support...
ULRIKE Company bottles and distributes Apfelsaft, a children’s drink. The beverage is sold for 50 cents...
ULRIKE Company bottles and distributes Apfelsaft, a children’s drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charges customers 70 cents per bottle. For the year 2018, management estimates the following revenues and costs. Sales $2,500,000 Direct Materials 360,000 Direct Labor 450,000 Manufacturing overhead – variable 270,000 Manufacturing overhead – fixed 380,000 Selling expenses – variable 80,000 Selling expenses – fixed 250,000 Administrative expenses – variable 40,000 Administrative expenses – fixed 150,000 Instructions Prepare a...
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 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...
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...
Table 12.4
(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 space (number of pallets) and not to handling...
Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $212,000 Direct materials $2,000,000 Selling expenses- variable 480,000 Selling expenses- fixed 330,000 Administrative expenses-variable 50,000 Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed 28,000 90,000 350,000 Administrative expenses-fixed 280,000 Prepare a CVP income statement for 2020 based on management's estimates. SHERIDAN...
A.)
B/C.)
D/E.)
Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $2,000,000 480,000 330,000 350,000 280,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $212,000 50,000 28,000 90,000 Prepare a CVP income statement for 2020 based on management's estimates....
Best company supplies furniture to three local retailers, Danny, Penner, and Victor Inc. The following exhibit presents representative revenues and costs of Best by customers for the year 2019. Additional information on Best's costs for different activities at various levels of the cost hierarchy is as follows: Danny $540,000 370,000 47,000 Penner $340,000 220,000 20,000 Victor $450,000 380,000 37,000 Total $1,330,000 $970,000 $104,000 Sales Cost of goods sold Materials-handling labour Materials-handling equipment (Cost written off as amortization) Rent Marketing support...
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