2.Appleby Manufacturing uses an activity-based costing system.
The company produces Model F and Model G. Information...
2.Appleby Manufacturing uses an activity-based costing system.
The company produces Model F and Model G. Information relating to
the two products is as follows : Model F Model G Units produced
24,000 30,000 Machine hours 7,500 8,500 Direct labor hours 8,000
12,000 Material handling (number of moves) 4,000 6,000 Setups 5,000
7,000 Purchase orders 30 40 Inspections 10,000 14,000 Product line
variations 8 12 The following overhead costs are reported for the
following activities of the production process: Material handling...
Traditional Systems – detailed gross profit
statement
Product JCX-1
Product JCX-2
Total
Sales
10,000,000
8,400,000
18,400,000...
Traditional Systems – detailed gross profit
statement
Product JCX-1
Product JCX-2
Total
Sales
10,000,000
8,400,000
18,400,000
Cost of sales:
Direct material cost
3,120,000
1,580,000
4,700,000
Direct labour cost
2,200,00
3,300,00
550,000
Manufacturing overhead cost
3,340,000
1,910,000
5,250,000
Total Manufacturing cost
6,680,000
3,820,000
10,500,000
Gross profit
3,320,000
4,580,000
7,900,000
Number of units
20,000
10,000
30,000
Per unit product cost
$500
840
1,340
Activity Based Costing (ABC) – detailed gross profit
statement
Product JCX-1
Product JCX-2
Total
Sales
$
10,000,000.00
$ 8,400,000.00...
After reviewing the new activity-based costing system that Nancy
Chen has implemented at IVC's CenterPoint manufacturing...
After reviewing the new activity-based costing system that Nancy
Chen has implemented at IVC's CenterPoint manufacturing facility,
Tom Spencer, the production supervisor, believes that he can reduce
production costs by reducing the time spent on machine setups. He
has spent the last month working with employees in the plant to
change over the machines more quickly with the same reliability. He
plans to produce 110,000 units of the Sport model and 45,000 units
of the Pro model in the first...
After reviewing the new activity-based costing system that Nancy
Chen has implemented at IVC's CenterPoint manufacturing...
After reviewing the new activity-based costing system that Nancy
Chen has implemented at IVC's CenterPoint manufacturing facility,
Tom Spencer, the production supervisor, believes that he can reduce
production costs by reducing the time spent on machine setups. He
has spent the last month working with employees in the plant to
change over the machines more quickly with the same reliability. He
plans to produce 109,000 units of the Sport model and 44,500 units
of the Pro model in the first...
After reviewing the new activity-based costing system that Janis
McGee has implemented at Joplin Industries’s Port...
After reviewing the new activity-based costing system that Janis
McGee has implemented at Joplin Industries’s Port Arthur
manufacturing facility, Kris Kristoff, the production supervisor,
believes that he can reduce production costs by reducing the time
spent on machine setups. He has spent the last month working with
employees in the plant to change over the machines more quickly
with the same reliability. He plans to produce 106,000 units of
J25P and 43,000 units of J40X in the first quarter. He...