Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

GAMMA produces over a hundred different types of residential water faucets as its

Delta, Florida plant .This plant uses activity -based costing to find out product costs.

The following table summarizes the plant's overhead for the year and the cost drivers

Used for each activity center:

Summary of plant Overhead and Activity Centers

Total cost
(millions
Activity center of dollars) Cost driver Amount of cost Activity cost per unit
&nbs p; &n bsp; Driver of cost drive

Materials handling $20.8 Direct materials $130 million $ 0.16

Purchasing 13.8 part numbers 800 $17,250

Set-up labor 6.8 &n bsp;Batches 500 $13,600

Engineering 10.9 Number of products 125 $87,200

Occupancy 16.2 &nb sp;Direct labor $ 90 million $0.18

----------------
Total plant overhead $ 68.5
----------------

One faucet model GAMMA manufactures is Explorer .Its total product cost is as follows:

Direct labor ; &nb sp; $ 121,700

Direct materials & nbsp; ; 90,500

Materials handling $ 90,500 $ 0.16 14,480

Purchasing 9 17,250 &nb sp; 155,250

Setup ; 8 13,600 &n bsp; 108,800

Engineering ; 1 87,200 &nb sp; 87, 200

Occupancy $121,70 0 $0.18 &nbs p; 21,906
&nbs p; &n bsp; ---------------------

Total cost &nbs p; $599,836

Number of units manufactured &nbs p; 12,500
&nbs p; &n bsp; ---------------------

Product cost per unit &nbs p; $ 47.99

&nbs p; &n bsp; ----------------------

Required problem:

find out the product cost per unit of the Explorer faucet using absorption costing where plant

Overhead is assigned to products using direct labor dollars.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M928628

Have any Question? 


Related Questions in Business Management

Read the synopsis of the scenario you viewed at the

Read the synopsis of the scenario you viewed at the beginning of this module: The two companies will need to merge their business information systems or find a new one that will work in a distributed organizational envir ...

A customer service center has customers call with questions

A customer service center has customers call with questions about the use of a product. The mean arrival rate of customer calls is 20 per hour and follows a Poisson distribution. The mean service rate (how long it takes ...

Campus networkprovide a review of what kind of campus and

Campus Network Provide a review of what kind of campus and between building networking components and services are needed to ensure communication for the medica center. This should include a brief review of: Router place ...

What would be the benefits of developing a team charter as

What would be the benefits of developing a team charter as part of a group project in this class or another class you are taking?

Microsoft word - case study project two Microsoft Word - Case Study Project Two

Microsoft Word - Case Study Project Two Instructions_f16Please analyze the external environment of the U.S. Oil and Gas Field Machinery and Equipment Industry based on the following six segments: Demographic, Economic, P ...

Twenty years ago the idea of e-commerce was largely

Twenty years ago, the idea of e-commerce was largely theoretical. Ten years ago, social networking and cloud computing were in their infancy. Today, we cannot imagine the Internet without these things. Are there trends i ...

In this one- to two-page 250-500 word paper you will

In this one- to two-page (250-500 word) paper, you will discuss each of the different components of an information system, and then explain how you can use the five-component model to guide your learning and thinking abo ...

The discussion of performance management and financial

The discussion of "performance management and financial control" identified two companies where the corporate HQ imposes a strong performance management system on its business units, PepsiCo and BP. For which company do ...

Is the internet an infrastructure architecture or an

Is the Internet an infrastructure, architecture, or an application program? Why? If none of the above, then what is it?

Every organization has its own particular needs as such

Every organization has its own particular needs. As such, organizations should have leadership put in place that is effective. That said, there's no such thing as a one-size-fits-all approach to leadership. In your local ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro