Problem 1 b ABC Product AA Product BB

. .
system
a .
Machine related Answer :
Direct materials 1000001240 , 000

Machine operations #150 , 000 12 50

.
Direct Labor 100,000 700, 000

Machine 11 80 Overhead
setup 100 000 . :

Total 250, 000 Setup related :

: Machine hours 20000 AA/500K = 400) X 240 : 300 000

12 50 .
BB (500k = 400) X 160 :
200 000

Design related
Other cost : AA (700K = 20k) x 12K =
420000

material handling 90 , 000 BB (700K = 20K)x 8K =

280000

Other materials related 120, 000 Other cost

other overhead 380, 000 AA (1800K = 100k) x 61 :

108 000

Total 590000 BB (180K : 100K) x94K =

1492 , 000

- Labor hours -
50000 Factory cost 1328, 000 4112000
II So
.
:
Units produced 1000 31008

Unit cost 1328 132 65 .

b . Machine setup (100,000 = 2000 =

50

materials handling (90000 : 2000 45 Problem 3

. multifunctional Technical
:

Other material overhead (120000 = 2400)

:
50 material handling
50000
!
Other overhead (380, 000 = =
7 U
.
Multi 10. x 12000) 1200

Machine operations (150000 : 000) 7 5 Techi 10% x 15400) # 1548

:
20, .

Machine Setup

M(640x
45
Problem .
2 28808

a .
Existing Cost System Product AA Product BB T(640x25 16000

1400 x 1000) (40x31000)

Direct materials 400 , 000 1240 , 000 Assembly
Direct Labor 100 , 000 700, 000 M(48 x 400) 19200

Overhead T 148 x 700) 33600

AA (3M = 100K) X 6K :
180 , 000 Inspection
BB (3M = 100K)x 94K :
2820, 000 m (20 x 400) 8000

Total Factory Cost 600, 000 4760000 ↑ (20 x 700) 14000

: units Produced = 1000 = 31000

Packaging & shipping

m40x "
Unit cost 680 153 55 .
9 360

T40X14 648

Total Overhead cost 57568 45780

- units of keyboard 408 700

Unit Cost per product unit 143 90

.
93 97 .
Problem 4

material handling (60K = 1000) :

60

machine Setup (54K : 450) :

120

Quality Inspection (4817 : 600) : so

Product AA Product BB

material handling

AA(60 400)
x 24000

BB 60 x 600 36000
machine setups
AA/120 x
"
150 18000

BB (120 X 300 36000

Quality Inspection

A80 !
x 200 16000

BB 80 x 400 32000

Total Allocated Overhead 58000 104000