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Author Question: Brilliant Accents Company manufactures and sells three styles of kitchen faucets: Brass, Chrome, and ... (Read 82 times)

K@

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on: Mar 6, 2021
Brilliant Accents Company manufactures and sells three styles of kitchen faucets: Brass, Chrome, and White. Production takes 25, 25, and 10 machine hours to manufacture 1,000-unit batches of brass, chrome, and white faucets, respectively. The following additional data apply:

BRASSCHROMEWHITE
Projected sales in units30,00050,00040,000
PER UNIT data:
Selling price$40$20$30
Direct materials$ 8$ 4$ 8
Direct labor$15$ 3$ 9
Overhead cost based on direct labor hours
(traditional system)$12$ 3$ 9

Hours per 1000-unit batch:
Direct labor hours401030
Machine hours252510
Setup hours1.00.51.0
Inspection hours302020

Total overhead costs and activity levels for the year are estimated as follows: 

ActivityOverhead costsActivity levels
Direct labor hours2,900 hours
Machine hours2,400 hours
Setups$465,50095 setup hours
Inspections$405,0002,700 inspection hours
$870,500

Required:
a.Using the traditional system, determine the operating profit per unit for the brass style of faucet. 
b.Determine the activity-cost-driver rate for setup costs and inspection costs. 
c.Using the ABC system, for the brass style of faucet:
1.compute the estimated overhead costs per unit.
2.compute the estimated operating profit per unit. 
d.Explain the difference between the profits obtained from the traditional system and the ABC 
system. Which system provides a better estimate of profitability? Why?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by K@ on Mar 6, 2021

Expo

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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K@

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Reply 2 on: Mar 6, 2021
Excellent

hramirez205

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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