Question

P4-49 (similar to) Question Help O'Rourke Company is an automotive component sur une has been approached by Ford's Ohio plant to consider expanding production part 242 to lay of 2.500 units This part is a low-volume, complex product with gross in the based on a proposed quoted unt le price of 87 90 Our uses a traditional conting system that allocated indirect manufacturing costs based on direct labor costs The tale currently used to allocate indirect manufacturing cus 50% of director cost. This rate is based on the 56.4 16.000 annual tactory overhead cost vided by 51233200 annual rechtstercot. To produce 2.500 units / 2422 requires 55.500 of direct materials and $1.750 of dead ater. The unit cost and gross margin percentage for part 2422 based on the traditional cost system are computed as follow Click the icon todo costa) The management of Route decided to examine the effectiveness of the traditional costing system versus an activity-based costing The following dat we been collected by a team consisting of accounting and engineering the loon to the ABC cost data) Read more Requirement 1. Prepare a schedule in the cost and gross margin of part2Z2 using the activity based costingrach Use the contenvers given contactation bases (Round the cost to two decimale) Data Table Ana Co Cool location Base Cocivity Center Oy Production Petit Total 12.500 2.20 $ Director Deliber Indre production (50% of con 5.500 5 1.750 8.750 0 0 3.50 Shipping adston Production 5 5 Total intrect cost 700 5 150 Grossagin percentage Print Done Choose from any list friends and then click Check Awe

Answer 1

А B D G HA S.No. Nature of Costs Total Cost Cost Driver Activity assigned Amount allocated to Part to Part 2472 24Z2 =C*(F/E) 4 5 1 140 6 2 4 Total of Each Activity Cost Centres 17,000 800 800 63,000 1,900 18,000 7 Quality Production Scheduling Setup Shipping Shipping Administration Production 7,700 480 6,800 81 3 9,35,000 No. of Pieces Scrapped 96,000 Number of setups 13,60,000 Number of setups 5,67,000 Number of containers shipped 38,000 Number of Shipments 34,20,000 Number of Machine hours 4 8 4 9 5 6 120 10 6 18 3,420 11 12 Total 64,16,000 14,981 13 14 Total Indirect Production Costs assigned to 24Z2 = $ 14,981 Cost assigned to each unit = 14,981/ 2500 units = $5.99 per unit 15 16 17 18 19 Sheet 3 Sheet 2 Sheet 1 Sheet 101 | Sheet 102 Sheet 103 Sheet 104 Sheet 105 + 11296 Ready