rehearse the information in possess 2 to calculate the product costs per unit for valve, pumps and run for controllers that are reporter in Exhibit 1. Show your calculations.
count set up cost. (8 x 16) + (8 x 16) x 5 + (12 x 16) x 10 = $2,688
Total Overhead including square off Up = 680,000 + 2,688 = $82,688
Unit Cost
($682,688/9725hr) x 0.25 + $16(Material) + (0.25 x $16) = 37.55 Valves
($682,688/9725hr) x 0.5 + 20 + 8 = $63.10 Pumps
($682,688/9725hr) x .04 + 22 + 6.4 = $56.48 current Controllers
Valves Pumps Flow Controllers
Material 16 20 22
Run apprehend 4 8 6.4
Overhead 17.55 35.1 28.08
TOTAL COST 37.55
63.10
56.48
change determine 57.78 81.26 97.07
Gross Margin 35% 22% 42%
QUESTION 2
What is your estimate of the current contribution margins for the deuce-ace products? Show your calculations and explain them.
Contribution Margin is price little all variable cost. Since Maintenance and Depreciation are indomitable costs, we estimate current Contribution Margin.
Variable Overhead
682,688 30,000 270,000 = $382,688 (variable overhead)
(382,688 / 9725) x 0.25 = 9.84 Valves (per unit)
(382,688 / 9725) x 0.5 = 19.68 Pumps (per unit)
(382,688 / 9725) x 0.4 = 15.
74 Flow Controllers (per unit)
Valves Pumps Flow Controllers
Material 16 20 22
Run Labor 4 8 6.4
Variable Overhead 9.84 19.68 15.74
TOTAL COST 29.84
47.68
44.14
Selling Price 57.78 81.26 97.07
Contribution Margin 48.4% 41.3% 42%
QUESTION 3
Use the information in Exhibit 2 calculate the rewrite product cost mentioned by Mary Ford on page 245
Overhead
Receiving, Material Handling
(7,500 x 16)/458,000 = 0.262 (26.2%) Valves
250,000/458,000 =...If you unavoidableness to get a full essay, order it on our website: Ordercustompaper.com
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