Overhead Cost Drivers
Refer to the original data given in the preceding problem for Tulsa Photographic Supply Company.
Required:
1. Calculate the unit cost of a production order for 100 specially coated plates used in film development. In addition to direct material costing $120 per plate and direct labor costing $40 per plate, the order requires the following:
Machine setups | 3 |
Raw material | 900pounds |
Hazardous materials | 300 pounds |
Inspections | $3 |
Mac'1ine hours | 50 |
2. Build a spreadsheet: Construct an Excel spreadsheet to solve the preceding requirement. (This will be an extension of the spreadsheet constructed for the preceding problem.) Show how the solution will change if the data given ill the preceding problem change as follows: the overhead associated with machine setups is $375,000, and there are 500 inspections budgeted.
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