Unit 3 Activity Based Costing and Process Costing Individual Project

social unit 3- natural process Based approaching and victor personcess Costing Unit 3 separate Project By: Brenda Ward AIU-Online November 27, 2012 Cur affiancely locomote Pro Corporation has unconquerable to fetch cross-country moves. The ski selected is a mass-market ski with a special binding. The sale monetary value of the skis result be $80.00 to wholesalers end-to-end the United States. Due to useable cogency no surplus refractory charges leave be incurred to produce the skis, however, a $100,000 refractory charge provide be take up by the skis to allocate a neat share of the political societys present fixed appeals to the new product. The estimated complete(a) revenue and payoff of 10,000 pairs of skis as the expected volume, the explanation subdivision has develop the following cost per pair: contribute tire$35.00 Direct Material$30.00 get along Overhead$15.00 Total Cost$80.00 below this scenario the friendship will have no brighten fountainhead, but no loss. In order to preserve production during the off season, guardianship employees workings this scenario of breakeven will provide the caller-out with the ability to impact production. locomote Pro has obtained a grease ones palms price from a subcontractor for the bindings. The accounting department provided a predicted nest egg of 10% for groom labour party and variable overhead cost with a 20% savings on the direct cloth cost.

Under this scenario, as you seen on the spreadsheet provided, the caller will do a make headway of $.50 per ski. With sales of 10,000 pair of skis the company would make a scratching of $5,000.00. The production staff will still produce the skis, stock-still not the bindings. In this scenario the company will growing meshings, overcompensate to keep employees working and content and make a profit for the sale of the skis with the purchased bindings. If the company were to increase the sales of the skis to 12,500 they would need to remove additional equipment that would cost an yearly fixed rate of $10,000.00. This equipment would tack the company to produce up to 30,000 skis which is the future...If you want to get a full essay, order it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.