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 T 2270 V0850 2020 Spring (A) omework: Week #2 Chapter #4 Homework re: 0 of 2 pts 16 of 21 (14 complete) 49 (similar to) Data Table This urrent Materia ourke Company is an automotive component supplier O’Rourke has been s margin that is based on a proposed (quoted) unit sales price of $7.900 50% of direct labor cost. This rate is based on the $6,416,000 annual facto Es margin percentage for part 24Z2 based on the traditional cost system are (Click the icon to view the traditional cost data) management of O’Rourke decided to examine the effectiveness of their tre (Click the icon to view the ABC cost data) ad the requirements ng of Activity Center Quality Production scheduling Setup Shipping Shipping administration Production Total indirect production cost Factory Overhead Costs (Annual) $ 935,000 96,000 1,360,000 567.000 38,000 3,420,000 $ 6,416,000 quirement 1. Prepare a schedule calculating the unit cost and gross margin cos! Annual Cost Cost Allocation Base Activity Ceriter Jally oduction scheduling tup hipping hipping administration: roduction: Activity Center: Cost Drivers Annual Cost-Driver Quantity Quality: Number of pieces scrapped 17.000 Production scheduling and solup: Number of setups 800 Shipping: Number of containers shipped 63,000 Shipping administration Number of shipments 1,900 Production: Number of machine hours 18,000 The accounting and engineering team has performed activity analysis and provides the following estimates for the total quantity of cost drivers to be used to produce 2,500 units of part 2422 Cost Driver Cost-Driver Consumption Pieces scrapped 140 Setups Containers shipped ents Machine hours 18 tal indirect cost Print Done Choose from any list or enter any number in the input fields and then click 10 Pro remaining Clear All
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