Cost Analysis – 1-8

Need homework help,  Number problems exactly as they appear in  attachment below.  For eg. 1. – Problem 17-14.

Need in excel format.

 

Need by Wednesday, night.

 

Thanks

3117t13 A;signment Print View

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1,

orerhend (300% of direct labor cost) 18,600 3tt,700 il,300

Total c;ost

Quantity produced
Ar,eragie cost per ft.

$ 34,1ao $ €,tl,zoo g 1o3,3oo
10,500 ft. 14,1AO ft..

$ 3.25 $ 4.e1

Northwest’s controller wishes to apply activty{ased costing (ABi:)) to allocate the $54,300 of or,erhead
costs incuned by the two product lines to see whether cost per foot vvould change markedly ftom that
reported abo\,e. She has collected the bllowing information.

Overhead Cost Category (Actirity Cost Pool) Cost
Supervision $ 2,172
Depreciation of machinery 29,000
Assembly line preparation 23J29

Total orcrhead $ il,300

She has also collected the following information about the cost dri\,ers {or each category (cost pool) and the
amount rf each dri\,er used by the two product lines.

Usage

Overherd Cost Category
(Activity,Cost Pool) Drir,er Rounded Edg() Squared Edge Total
Supenision Direct taborcost (g) $ 6,200 $ 11,900 g 18,100
Depreciation ofmachinery Machine hours 300 hounr 700 hours 1,000 hours
Assemlty line preparation Setups (number) 31 timesr g3 times 124 times

l. Assign these thre€ overhead cost poots to each ofthe two proclucts using ABC. {Do not round your
interrnediafe Ealculations and round llnal ansl,v€rs to lhe neared dollar amosnl Omit th; ‘.$..
dgn iin your response.)

Product Assigned cost
Rounded edge $,
Squared edge $

2. Detenrnine a\,erage cost per foot for each of the two prcducl.j using ABC. (Do not round your
intermediste calculations. Round your answers to 2 decirn;rl places. omit the .’$,. sign in your
respc’nse.)

Rounded edge Squared edlF
Averirge cost per foot (ABC) $ $

Direct materials
Direct labor

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Fx*r*rs* 1″,7-t 4,Acflvdy-#a$## sosffr?g *f oy*rhe*rj
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Rounded Edge Squan:d Edge Total
$ 9,300 $zt,6oo $ 3o,goo

6,200 1 1,900 18,100

2.

Fxercise 1 i7-t 5 Activity-based cosfing L.O. PJ
Health Co-op is an outpatient surgical clinic that was profitable for rrrany years, but Medicare has cut its
reimbursements by as much as 50%. As a result, the clinic wants to better understand its costs. lt decides
to prepare an actiVtyiased cost analysis, including an estimate of thr: 6rpr6gg cost of both general surgery

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3t17t13

3.

Aisignrnent Print View
and orthopedic surgery. The clinic’s three cost centers and their c(rst driwrs follow.

Cost Center Cost Cost Drir,rer
Professional salaries . $ 1,2gg,000 professional l.rours
Patient seruices and supplies 2132A Number of palients
Buildirrgl cost 113,600 Square feet

The twcl rnain surgical units and their related data follow.

Service
Generill surgery
Ofthopedic surgery

Cost Center
Prcilessional salaries

Patient senices & supplies
Buildiing cost

Design de,partment

Clienll consultation

Drawings

Mode,lling

Project rnianagement departm ent
Superrision
Billings
Collections

Cost per driwr
$ 140.00 per hour [“”
$ 41 .00 per patient Lo”
$ 80.00 per sq.ft vr”

Activities

1,300 contact hours
2,800 design hours

45,000 square feet

1,200 days
9 jobs
9 jobs

Drirer Quantity
9,200

520
1,420

Costs .’
.:

t; 247,000
1681000

36,000

$ 216,ooo
g,200

17,450

er:tirlty cost pools where appropriate.
iir Srmur respx*nse.$

Hours Square Feet* Flatients
2,100 560 360
7J0A 860 rca

” Orthopedic surgery requires more space for patients, supplies, anll equipment.

Required
{. Compute the cost per cost drirer for each of the three cost centers. {Omit the ,,$,, sign in yourresponse.)

2′ Use the results fom part 1 to allocate costs fom each ofthe three cost centers to both the general
surgery and the orthopedic surgery units. compute total cost at d alerage cost per patient for both the
general surgery and the orthopedic surgery units. {omit the ‘-$” r;ign in }our response.}

General surgery Orttropedic suq;€ry
Total cost $ $
Ar,erage cost per patient $ $

W wykshs*Ett

Exgycise 17-12 Using ABC in a service campany L.O. p3
Singh and Smythe is an architectural lim that pror,ides seniices for residential construc{ion projects. The
tollowing data pertain to a recent reporting period,

Required:
1. using ABC, compute the firm’s actir,ity orcrhead rates. Fonn

{ffi*u*’ru$ ysx*r ffiilswsrw *s fr dec$rw** p$m*es. #rm$t tf}* **$no s*gxr

Clienll consultation
Drawings

Modeling

Supenrrision

Billings/Collection

Client consultation

Drawirrgls

Modeliing

Superrdsion

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$ 19o.oo
$ 60.00
$ o.Bo
$ 1go.oo
$ 2,850,00

/con. hr. ir’
/design hr. l- ‘

/sq.ft.
,, b,,n'”

lday
U

ljab ‘

Assign costs to a 8,400 square fi)ot job that requires 490 contar:rt houF, 34g design hours, and 22o
days to complete. (Round your intermediate calcuiations lo 2 rlecimal plaees. omit the ..g.. sign
in your response,) t

93, 100.00 ”*/
20,880;00 L’

J,
6,72(L00 L’

39,600.00 L./”

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4.

Billings/Collection

Toliall cost of job

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‘ As:iignrnent Print View
t!2,950.00 ‘r’

$ 163, f 50.00 v’

Yleurtryry

Wsrksheet

Ex*rcis* l7-12 Usrng A#C in a se{vi#* c*rftpany L.*.
p3

Fxercrse ’17-11 Using ABC lo assess pnbes L.O. AZ, pg
Real Cool produces two different models of air conditionem. Th,e company produces the mechanical
systems in their components department. The mechanical sysl:ems are combined with the housing
assembly in its fnishing department. The activities, costs, anrj dri\,ers associated with these two
manufactwing processes and the poduction support process follow

Procerss Activity
Components Changeowr

Machining
Setups

Finishing Welding
lnspecting
Rework

Supporl. Purchasing
Providing space
Providing utilities

Model 145
Units pniduced 1,000
Welding hours 1,000
Batches; 355
Number of inspections 4gA
Machine, hourc 2,TSA
Setups 110
Rework rorders 140
Purchase orders 340

Owrhead Cost Drirrc r’
$ 514,750 Number of batches

380,359 Machine hourr;
405,900 Number of selups

$ 1,301,009

$ 286,120 Welding houni,
299,700 Number of ins lrections
uo:1ol Rework orden;

$ 636,

220

$ 193,800 Purchase ordr:rs

30,400 Number of unil:s
60,320 Number of unils

Quantity
71A

9,1 10

220

4,600
810
240

510
4,900
4,900

$ 2U,520

Additionarl production information conceming its two product lines foll:lws.

Model 212

3,2A0
3,600

355
320

5,360
110
100
170

Required:
l. Using ABC, compute the overhead cost per unit for each product line- {Round your intermediate

*alcufiations and tinal anawers lo 2 decimal places omit the *$” sign in your response.]

Product
Modr+l 145

Model 212

Prodtilc:t

Moderl 145

Model ,212

Moder,l 145

Mode’il 212

Overhead cost

per unit

per unit

Total cost

$ per unit
$ per unit

2. Detennine the total cost per unit for each product line ifthe direc:t labor and direct materials costs per
unit are $250 for Model 145 and $122 for Model 212. (Round youl intermediate and final ansarers to
2 decinnal places Ornil the “$” rjgn in your response.)

3. AssumeifthemarketpticeforModel 145is$T55andthemarketl)riceforMcd/el2l2is$610,determine
the proft or loss per unit for each model. {lnput all amountii as positive valuer Round your
intermediate and final anslrrers lo 2 deciftal place* Omit tht, ..$. rign in your response,)

ffi$
ffi$

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5.

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Department
Mixing deqartment

Liquid rmaterials
Dry materials
Utilitiels

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:l,irrln Ewtuating producf trne cosfs andprbes usrng A
fftre rollo ryle information appft’es fo tfte guesfions dl’qplaye d below.]

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U\Iorksipeet

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FxercrSp 17-I f Usrng ABC fc assess prices l.O. Aa
P3i

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g nrnent Prirf Vieur

‘ 1T-AA ldentif – -rq$*s$
“ad””;ntafies +riivity*baser.l

Data about these products

;i:rfipe* cf

your intennediate calculatians
it the “$” sign in yaur respcnse,)

found intermediate calculations

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Productiofi r,olume
Liquid materials
Dry materials
Bottles i ,
Labels i i
Machine Jetups

. Machine fisurs
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Additional flata from

Driver

Gallons
Pounds
Machine hours

Bottling department

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Bottles Units
Labeliilrg Labels per botile
Machife se!.up- Setups

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ProS fem f ff f ,+ EvaJuafrng producf Jine cosfs and
pnces usrngiABC l.O. Ps

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Difficulty Hard

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PowerPunch Slimlife
12,5AA boftles 2gA,00O botfles
2,000 gallons 39,000 gallons

720 pounds 4,000 por.rnds
12,500 bottles 290,000 botiles

5 labels per bottle 1 label per
500 setups 600 setups

its two production departments follow.

C,ost

$ 2,870
1,416

790

$175,59A
13,7AO

44,Affi

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Prablem 17i1A Part 1
Required
1, Detern{ine the cost of each product line using Atsc. {sa not ro

and rs[thd yoilr final anslflsr$ to th* neares dollar amCIilnt,
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Problem

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3117113

Probl*m 1,7-1A Part 3
3. Assqme if PcnrerPunch sells far $7 “45 per botfie, how rnuch pn

PowfrPunch that it sells? {Do not round intermediate calcul

nnnrTt Print Meur

l”$” sisn in ycur respanse,)
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$limLiFe
*+! “-.n^.n-r

*:$”- r*.ri

i/ bottle
:[‘:. ::::”,:::].: .’..’ .:u…-: :..r ri..:

does the comqny @rfi per botttre of
o*s *nd rcund ysur final an$ri/ers

7.

to Z hecimal ptracesi Smit the “$” sign in your respon*e.!
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Profit per bottle $ : :
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Learning Qbi

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Problem 117:1A Part 4
4. What isitp’re rninimum price that the company should set per bottle

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t,j:’t; $0,74 perbotde
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*}1 $o.s+ per botue

i:] i gr .oe per bofle

ftfrultiple Chaice
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Prablem, 17-1A Part 4

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Prablem ITFA Applying acfiwfy-based cosfing l.O, P|, P3, A

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[The tollowirlg rnformafion applres rb fhe guesfrbns disptaye d below.]

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Crafrmore &lachining produces machine tools for the eonstruction
overhead cdsts were taken from its company records.tl

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Production Activity
Grinding

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Polishing
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Pnrduct modification
Providing power
Systgm cei!1brati91

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Additional iriformation on the dritrerc for its production actir,ities fdlorrs.
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Grinding
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Polishing
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Product modification
Providing pou/er
Syqtem cdlibration

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-.)., -+-.’ —. “..,…..

$ection Brdak
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Prah lem t iyin Appfying activity-based casting L-O.
Pt, P3, Af , flz, C3

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Worksf]eet

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Difficulty Hard

products using
: 17 -?3 Allscate awrhead costs tc
ivitpbased castirg.

SlimLife?

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stry. The following details about

lndirect Labor lndirect Materials
$ 320,000

$ 200,000
550,000

520,000

Ovefiead

260,000

9,000 machine hours
9,000 machine hours
1,900 engineering hours

14,000 direct labor hours
780 batches

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