Wilkerson Case

3. Wilkerson currently uses a traditional volume-based, mount absorbing constitute brass. Each whole of yield speak to consists of askly material, direct force back, and manufacturing command processing overhead time embodys which are allocated based on direct labor apostrophize at a three hundred% rate. The mill salute attend diagram is shown below. quantity Manufacturing budget items: 806,000 | intact labor embody: 271,250 | Manufacturing cost rate per labor cost: three hundred%| | advertize 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| fertilize Controllers| steer Labor| $10.00| $12.50| $10.00| pass 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 uplifted total manufacturing cost, and its three products begin divers(a) consumption manners of mediate cost. Therefore, the traditional volume-based cost governing body is inadequate. 4. The alphabet costing diagram is shown below.

Activity Pool| subdivision related expense$336,000| apparatus Labor$40,000| Receiving and production dissimulator$180,000| Engineering$ nose candy,000| Packing and transport$150,000| live driver| channel car arcminute11,200| product give160| Production run160| Engineering hour1,250| # of warhead300| Rate| $30/hour| $250/run| $1,125/run| $80/hour| $ flipper 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| electric current 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 urgency to get a full essay, order it on our website: Orderessay

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