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Question list Requirements a. What is the current overhead cost per unit for Simple machines, applying overhead based on machine hours? b. What is the material handling cost assigned to Simple machines under ABC? c. What is the machining cost assigned to Simple machines under ABC ? d. What is the full overhead cost per unit for Simple machines using ABC ? e. Compare the results under items (a) and (d). What do you conclude? f. Which strategic and operational decisions could be affected by not having accurate product cost information? g. What other information would you want to have if you were the manager of Tilton? Single Overhead Rate \begin{tabular}{|c|c|} \hline Total indirect costs & 1,995,000 \\ \hline Total machining hours & 30,000 \\ \hline Single overhead rate & $66.50 per hour \\ \hline \end{tabular} Print Done Cost Pool Data \begin{tabular}{|l|rr|c|c|c|} \hline \multirow{2}{*}{ Activity Cost Pool } & & \multirow{2}{*}{TotalCostAssigned} & Total Expected Activity & Simple & Complex \\ \cline { 3 - 6 } Material handling & $ & 43,000 & 4,300 orders & 2,580 orders & 1,720 orders \\ \hline Setups & $ & 47,000 & 100 setups & 80 setups & 20 setups \\ \hline Machining & $1,050,000 & 30,000 machine hours & 21,000 machine hours & 9,000 machine hours \\ \hline Quality control & $ & 209,000 & 1,100 inspections & 660 inspections & 440 inspections \\ \hline Total indirect costs & $1,995,000 & & & \end{tabular} Allocated Indirect Costs - Simple Machine Activity-Based Costing Information \begin{tabular}{|l|l|l|c|cr|} \hline \multicolumn{1}{|c|}{ Activity Cost Pool } & \multicolumn{2}{c|}{ Activity Rate } & \multicolumn{2}{c|}{ExpectedActivitySiple} & \multicolumn{1}{c|}{AllocatedCostSimple} \\ \hline Material handling & $43,0004,300=$10 per order & & 2,580 orders & $ & 25,800 \\ \hline Setups & $47,000100=$470 per setup & & 80 setups & $ & 37,600 \\ \hline Machining & $1,050,00030,000=$35 per machine hour & & 21,000 machine hours & $ & 735,000 \\ \hline Quality control & $209,0001,100=$190 per inspection & & 660 inspections & $ & 125,400 \\ \hline Total indirect overhead & & & & $ & 923,800 \\ \hline \end{tabular}

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