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| Teaching Since: | May 2017 |
| Last Sign in: | 431 Weeks Ago, 3 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
| Blue Ridge Manufacturing | ||||||
| ABC Analysis of Indirect Costs | ||||||
| Activity Measure Used By: | ||||||
| Activity Cost Pool | Amount | Activity Measure | Designer | Children's | Sports | |
| Designer Pay | $488,260 | Hours worked | 10,105 | 3,857 | 14,760 | |
| Supervisory pay | 163,176 | Hours worked | 76,411 | 82,606 | 47,498 | |
| Samples | 218,711 | Number of items | 2,223 | 2,224 | 1,229 | |
| Setup costs | 76,220 | Number of setups | 15,806 | 15,807 | 11,290 | |
| Travel for design | 47,266 | Travel hours | 3,985 | 2,213 | 6,476 | |
| Scheduling | 67,142 | Number of orders | 246 | 1,870 | 11,990 | |
| Customer service | 13,369 | Number of calls | 118 | 882 | 13,580 | |
| Design office costs | 7,925 | Square feet occupied | 900 | 811 | 1,004 | |
| Supervisory, setup, and | ||||||
| schedulers office costs | 66,665 | Square feet occupied | 1,800 | 1,622 | 2,008 | |
| Inspection | 13,501 | Number of inspections | 1,897 | 1,297 | 7,113 | |
| Purchasing | 175,356 | Number of unique items | 1,870 | 246 | 11,990 | |
| Materials handling | 71,641 | Number of material moves | 118 | 882 | 13,580 | |
| Total Costs | $1,409,232 | |||||
| Blue Ridge Manufacturing | ||||||
| Segmented Income Statement | ||||||
| Designer | Children's | Sports | Total | |||
| Sales | $3,464,915 | $3,246,587 | $1,739,510 | $8,451,012 | ||
| Less: | ||||||
| Variable product costs | 1,829,464 | 1,977,798 | 1,137,225 | 4,944,487 | ||
| Commissions | 236,805 | 256,006 | 147,202 | 640,013 | ||
| Contribution Margin | $1,398,646 | $1,012,783 | $455,083 | $2,866,512 | ||
| Less: | ||||||
| Indirect expenses | 687,601 | 497,903 | 223,728 | 1,409,232 | ||
| Income | $711,045 | $514,880 | $231,355 | $1,457,280 | ||
| 1. Use an excel spreasheet to determine the amount of indirects cost that coud be attributable to each product line | ||||||||||
| using activity-based costing (ABC. Data is in the ABC analysis tab of the file | ||||||||||
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