- Eastern Chemical Company Produces Three Products The Operating Results Of The Current Year Are Product Sales Quantity 1 (388.75 KiB) Viewed 31 times
- Eastern Chemical Company Produces Three Products The Operating Results Of The Current Year Are Product Sales Quantity 2 (306.6 KiB) Viewed 31 times
- Eastern Chemical Company Produces Three Products The Operating Results Of The Current Year Are Product Sales Quantity 3 (284.81 KiB) Viewed 31 times
- Eastern Chemical Company Produces Three Products The Operating Results Of The Current Year Are Product Sales Quantity 4 (307.81 KiB) Viewed 31 times
LO 30 points eBook Print References Eastern Chemical Company produces three products. The operating results of the current year are: Sales Target Actual Product Quantity Price Price 1,700 $ 298.00 $ 299.00 8,500 850 A B 310.60 215.50 268.60 323.00 с The firm sets the target price of each product at 150% of the product's total manufacturing cost. It appears that the firm was able to sell Product C at a much higher price than the target price of the product and lost money on Product B. Tom Watson, CEO, wants to promote Product C much more aggressively and phase out Product B. He believes that the information suggests that Product C has the greatest potential among the firm's three products because the actual selling price of Product C was almost 50% higher than the target price, while the firm was forced to sell Product B at a price below the target price. Both the budgeted and actual factory overhead for the current year are $787,600. The actual units sold for each product also are the same as the budgeted units. The firm uses direct labor dollars to assign manufacturing overhead costs. The direct materials and direct labor costs per unit for each product are: Direct materials Direct labor Total prime cost Difference $ 1.00 (42.00) $ 107.50 Product A $ 63.00 33.00 $ 96.00 Number of setups Weight of direct materials (pounds) Waste and hazardous disposals Product B $ 127.40 25.00 $ 152.40 Product C $ 78.00 17.00 $95.00 The controller noticed that not all products consumed factory overhead similarly. Upon further investigation, she identified the following usage of factory overhead during the year: Product A Product B Product C 5 8 6 263 363 413 38 58 43 Total Overhead $ 8,600 187,000 425,000 Check my work 3
LO 30 points eBook Print References Number of setups Weight of direct materials (pounds) Waste and hazardous disposals Quality inspections Utilities (machine hours) Total Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Required: 1. Determine the manufacturing cost per unit for each of the products using the volume-based method. 2. What the least profitable and the most profitable product under oth the current and the Materials Labor Overhead systems? 3. What is the new target price for each product based on 150% of the new costs under the ABC system? Compare this price with the actual selling price. Total cost Product A 63.00 33.00 91.74 187.74 Product A 5 413 38 43 3,400 $ Determine the manufacturing cost per unit for each of the products using the volume-based method. (Round your intermediate calculations and final answers to 2 decimal places.) Product B 127.40 25.00 69.50 221.90 $ $ Product B 8 263 58 48 8,300 Product C $ Product c 6 363 43 48 1,700 $ TULAL Overhead 78.00 17.00 47.26 142.26 $ 8,600 187,000 425,000 88,000 79,000 $ 787,600 Check my work 3
LO 5 30 points eBook Print References Number of setups Weight of direct materials (pounds) Waste and hazardous disposals Quality inspections Utilities (machine hours) Total Required 1 Complete this question by entering your answers in the tabs below. Required 2 Product A 5 413 38 43 3,400 Required: 1. Determine the manufacturing cost per unit for each of the products using the volume-based method. 2. What is the least profitable and the most profitable product under both the current and the ABC systems? 3. What is the new target price for each product based on 150% of the new costs under the ABC system? Compare this price with the actual selling price. Required 3 Most profitable product Least profitable product Product B 8 263 58 48 8,300 < Required 1 Product C 6 363 43 48 1,700 TULAI Overhead What is the least profitable and the most profitable product under both the current and the ABC systems? ABC Costing System Current Cost Data Product B Product C Product C Product B Required 3 $ 8,600 187,000 425,000 88,000 79,000 $ 787,600 Check my work 3
5 30 points eBook Print References Number of setups Weight of direct materials (pounds) Waste and hazardous disposals Quality inspections Utilities (machine hours) Total Required 1 Complete this question by entering your answers in the tabs below. Required 2 Product costs: Required: 1. Determine the manufacturing cost per unit for each of the products using the volume-based method. 2. What is the least profitable and the most profitable product under both the current and the ABC 3. What is the new target price for each product based on 150% of the new costs under the ABC system? Compare this price with the actual selling price. Product A 5 413 38 43 3,400 Required 3 Activity system ABC-based product pricing: Target price Product B 8 263 58 48 8,300 Product A What is the new target price for each product based on 150% of the new costs under the ABC system? Compare this price with the actual selling price. (Round your intermediate calculations and final answers to 2 decimal places.) Product B Product C 6 363 43 48 1,700 HULAH Overhead Product C $ 8,600 187,000 425,000 88,000 79,000 $ 787,600 Check my work 3