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I need some assistance with these assignment. advantages and disadvantages of activity based management on the example of profitability of galvanized pallet nails Thank you in advance for the help!
I need some assistance with these assignment. advantages and disadvantages of activity based management on the example of profitability of galvanized pallet nails Thank you in advance for the help! The cost was $420000 and cost driver volume of $110000. The cost per driver was (420000/110000) = 3.82. The units consumed 2817 hence the total cost apportioned was (3.82*2817) = 10755.82.
Depreciation galvanizer was a cost pool with ton galvanized as the cost driver. The cost pool was $623000, the cost driver volume 45000. The cost per driver volume (623000/45000) = 13.84. The units consumed were 2817. Cost apportioned (13.84*2817) = 38999.8
Depreciation of heading and threading cost pool had the cost of $57500 with a cost driver volume of 2817. The cost per volume was ($57500/2817) = 20.41. The number of units consumed is 2817. The total cost apportioned (20.41*2817) = 57500. The material handling had a number of moves as the cost driver. The cost incurred was $350000 and cost volume of 4500. The cost per driver volume (350000/4500) = 77.78. The units consumed was 21 leading to the total cost amounting to (77.78*21) = 1633.33.
Dies retooling was cost pool that had tool shops hours cost driver. The cost incurred was $382000 with cost volume of 3300. The cost per volume (382000/3300) = 115.76. The numbers of units consumed were 13. The total cost apportioned was (115.76*13) = 1504.85.
Wire drawing changeovers had a number of changeovers cost drivers. The cost was $272000 with 700 cost driver volume. The cost per driver volume was ($272000/700) = 388.57. The units consumed were 2 leading to a total cost apportioned to be (388.57*2) = 777.14.
A quality inspection had the number of inspections as the cost driver. The cost of inspection incurred was $420000 with a cost driver volume of 1000. The cost per driver was computed as (420000/1000) = 420. The units consumed were 4 hence the total cost apportioned was (420*4) = 1680.
Order processing had the number of orders as the cost driver. The cost incurred was $143000 with cost volume of 3000. The cost per driver was (143000/3000) = 47.67. .
