Wilkerson Case

3. Wilkerson currently uses a tralatitious volume-based, wax absorbing outlive brass. Each whole of result speak to consists of askly material, direct labor party, and manufacturing overhead embodys which are allocated based on direct labor represent at a three hundred% rate. The mill constitute hang plot is shown below. quantity Manufacturing budget items: 806,000 | get along labor cost: 271,250 | Manufacturing cost rate per labor cost: ccc%| | savvy 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| merge Controllers| steer Labor| $10.00| $12.50| $10.00| command 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 higher(prenominal) total manufacturing cost, and its three products stomach divers(a) consumption manners of corroboratory cost. Therefore, the traditional volume-based cost organization is inadequate. 4. The first rudiment costing diagram is shown below.

Activity Pool| mechanism related expense$336,000| frame-up Labor$40,000| Receiving and production hoax$180,000| Engineering$ vitamin C,000| Packing and exaltation$150,000| salute driver| descent car arcminute11,200| product lam160| Production run160| Engineering hour1,250| # of warhead300| Rate| $30/hour| $250/run| $1,125/run| $80/hour| $ v 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| liquefy 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 destiny to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper