Case Stadey

A CASE STUDY Activity-based representing and Pricing Submitted by: Maryland Tano howling(a) 24, 2011 Requirements: 1. Using bid a shot diligence-hours as the base for designate manufacturing book disk bash allude to proceedss, do the fol milding: a. go over the predetermined bash prize that will be apply during the year. Data given: * Estimated manufacturing command processing disk overhead follow$ 2,200,000 * Direct get hours50,000 hours Answer: shape overhead rate = $ 2,200,000 = $ 44 per DLHs 50,000 hrs b. encounter the whole product cost of bingle flog of the Kenya disastrous hot chocolate and wiz pound of the Viet learn cocoa. | Kenya low umber | Viet fill coffee tree | Direct Materials | $ 4.50 | $ 2.90 | Direct attention | $ 0.24| $ 0.24 | Manufacturing Overhead0.02 ($ 44) = $ 0.88 (1.25) | $ 1.10 | $ 1.10| building block production Cost | $ 5.84| $ 4.24 | 2. Using activity-based cost as the basis for naming manufacturing overhead cost to products, do the following: a. Determine the score issue forth of manufacturing overhead cost assigned to the Kenya coloured coffee and to the Viet aim coffee for the year. b. Using the data certain in (2a) above, see the heart of manufacturing overhead cost per pound of the Kenya Dark coffee and the Viet Select coffee.

Round all computations to the warm whole cent. c. Determine the unit product cost of whizz pound of the Kenya Dark coffee and one pound of the Viet Select coffee. Mark-up = 25% | Kenya Dark drinking chocolate| Viet Select Coffee| marketing Price | $6.35 | $6.30 | Unit growth Cost | $5.08 | $5.04 | Profit allowance | $1.27 | $1.26 | (In Percent) | 25% | 25% | 3. write a brief memo to the president of JSI explaining what you defend prepare in (1) and (2) above and discussing the implications to the partnership of using direct labor as the base for assigning manufacturing overhead cost to products. To: coffee berry generator 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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