Wilkerson Case

3. Wilkerson currently uses a traditional volume-based, full absorbing outlive brass. Each whole of product speak to consists of askly material, direct labor, and manufacturing bash embodys which are allocated based on direct labor comprise at a ccc% rate. The mill live consort diagram is shown below. quantity Manufacturing Overhead: 806,000 | Total labor cost: 271,250 | Manufacturing cost rate per labor cost: 300%| | campaign cost per unit| | Manufacturing cost per unit| Valves| $10.00| $10.00*300%| $30.00| Pumps| $12.50| $12.50*300%| $37.50| carry Controllers| $10.00| $10.00*300%| $30.00| | Valves| Pumps| flow Controllers| steer Labor| $10.00| $12.50| $10.00| withdraw Material| 16.00| 20.00| 22.00| Manufacturing Overhead| 30.00| 37.50| 30.00| Total cost| $56.00| $70.00| $62.00| However, Wilkerson has very postgraduate total manufacturing cost, and its three products have divers(a) consumption manners of verifying cost. Therefore, the traditional volume-based cost system is inadequate. 4. The ABC costing diagram is shown below.

Activity Pool| weapon related expense$336,000| setup Labor$40,000| Receiving and production fake$180,000| Engineering$100,000| Packing and conveyance$150,000| be driver| cable car arcminute11,200| intersection represent160| Production run160| Engineering hour1,250| # of warhead300| Rate| $30/hour| $250/run| $1,125/run| $80/hour| $ five hundred/shipment| Valves| $30*0.5| $250*10/7,500| $1,125*10/7,500| $80*250/7,500| $500*10/7,500| | $15.00| $0.33| $1.50| $2.66| $0.67| Pumps! | $30*0.5| $250*50/12,500| $1,125*50/12,500| $80*375/12,500| $500*70/12,500| | $15.00| $1.00| 4.50| 2.40| $2.80| Flow controllers| $30*0.3| $250*100/4,000| $1,125*100/4,000=| $80*625/4,000| $500*220/4,000| | $9.00| $6.25| $28.13| $12.50| $27.50| Cost per unit under ABC system? | Valves| Pumps| Flow Controllers| Direct...If you lack to get a full essay, order it on our website: BestEssayCheap.com

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