Company XYZ has six standard products from stainless steel and brass. The companys most popular...
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Company XYZ has six standard products from stainless steel and brass. The companys most popular product is product XX. The information below shows product X axis data for next years budget using this information A) calculate the budget overhead cost using activity based costing principles B) calculate the budgeted overhead cost using absorption costing (absorb overhead using machine hours )and C) how can the company reduce the ABC for product XX: 1. 2.- 3. Customer AAA. BBB Component type A999. B999 Contract value ($) $27,000 $100,000 Contract quantity 1000 unit 2000 unit. Material cost /unit. $15. $20. Molding time /batch. 5 hours. 7.5 hours. Batch size. 100 units. 50 minutes. Activity Cost driver cost driver volume/Yr cost pool Purchasing purchase orders 1500 $75,000 Setting batches produced 2800$112,000 Material handling materials moved 8000$96,000 Inspection batches produced 2800 $70,000 Machining costs machine hours 50,000 $150,000 Purchase orders 25 Output 15,000 units Production batch size 100 units Materials movements per batch 6 Machine hours per unit 0.1
Company XYZ has six standard products from stainless steel and brass. The companys most popular product is product XX. The information below shows product X axis data for next years budget using this information A) calculate the budget overhead cost using activity based costing principles B) calculate the budgeted overhead cost using absorption costing (absorb overhead using machine hours )and C) how can the company reduce the ABC for product XX: 1. 2.- 3. Customer AAA. BBB Component type A999. B999 Contract value ($) $27,000 $100,000 Contract quantity 1000 unit 2000 unit. Material cost /unit. $15. $20. Molding time /batch. 5 hours. 7.5 hours. Batch size. 100 units. 50 minutes. Activity Cost driver cost driver volume/Yr cost pool Purchasing purchase orders 1500 $75,000 Setting batches produced 2800$112,000 Material handling materials moved 8000$96,000 Inspection batches produced 2800 $70,000 Machining costs machine hours 50,000 $150,000 Purchase orders 25 Output 15,000 units Production batch size 100 units Materials movements per batch 6 Machine hours per unit 0.1
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