Home » The cost accountant of abc manufacturing

The cost accountant of abc manufacturing

The cost accountant of ABC Manufacturing attended a workshop on activity-based costing and was impressed by the results. After consulting with the production personnel, he prepared the following information on cost drivers and the estimated volume for each driver.

Activity

Cost driver

Cost driver volume

Total

Machining

 

Ace

Best

Champ

 

Setup

Number of setups

125

75

50

250

Machining

Machine hours

2,500

1,500

2,000

6,000

Assembly

         

Assembly

Direct labor hours

25,000

15,000

5,000

45,000

Inspection

Number of inspections

50

25

25

100

The cost accountant also determined how much overhead costs were incurred in each of the four activities as follows:

Activity

Overhead costs

Machining

 

Setup

$150,000

Machining

750,000

Total Machining department overhead

$900,000

Assembly

 

Assembly

$360,000

Inspection

90,000

Total Assembly department overhead

$450,000

Total overhead costs

$1,350,000

Required:

a. Determine the cost driver rate for each activity cost pool.

b. Use the activity-based costing method to determine the unit cost for each product.

c. Summarize and comment the results.

 

 







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10