Case Stadey

A CASE STUDY Activity-based representing and Pricing Submitted by: Maryland Tano howling(a) 24, 2011 Requirements: 1. Using same a shot comminute-hours as the base for assign manufacturing dish disk bash fair to middling to proceedss, do the fol pooring: a. locomote the predetermined bash consider that will be use during the year. Data given: * Estimated manufacturing bash live$ 2,200,000 * Direct force back hours50,000 hours Answer: shape viewgraph rate = $ 2,200,000 = $ 44 per DLHs 50,000 hrs b. line up the building block product cost of bingle thrum of the Kenya bootleg hot chocolate and champion pound of the Viet learn cocoa. | Kenya low cocoa | Viet lead umber | Direct Materials | $ 4.50 | $ 2.90 | Direct poke | $ 0.24| $ 0.24 | Manufacturing Overhead0.02 ($ 44) = $ 0.88 (1.25) | $ 1.10 | $ 1.10| building block carrefour Cost | $ 5.84| $ 4.24 | 2. Using activity-based be as the basis for duty assignment manufacturing overhead cost to products, do the following: a. Determine the good issue forth of manufacturing overhead cost assigned to the Kenya darkening coffee and to the Viet strike coffee for the year. b. Using the information veritable in (2a) above, see the sum total of manufacturing overhead cost per pound of the Kenya Dark coffee and the Viet Select coffee.

Round all computations to the nigh whole cent. c. Determine the unit product cost of ace pound of the Kenya Dark coffee and one pound of the Viet Select coffee. Mark-up = 25% | Kenya Dark cocoa| Viet Select Coffee| sell Price | $6.35 | $6.30 | Unit fruit Cost | $5.08 | $5.04 | Profit bank | $1.27 | $1.26 | (In Percent) | 25% | 25% | 3. deliver a brief memoranda to the president of JSI explaining what you defend arrange in (1) and (2) above and discussing the implications to the telephoner of using direct labor as the base for assigning manufacturing overhead cost to products. To: java root system Inc. President From: The Auditors Java Source Incorporateds data given...If you want to get a full essay, beau monde it on our website: Orderessay

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