Abc Classic Pen Company
Individual Project #2
Classic Pen Company
Professor Vanover
Management 30B
03/12/2013
Assignment #1:
Assignment #2:
The Production Preparation, Records Maintenance, Computer System Operation, and Records Keeping in Computer were the four new activities Dempsey likely have identified, which Dempsey interviewed the department head in charge of indirect labor and the manager of the Data Center and the Management Information System departments for information.
Assignment #3:
Overhead Costs:
Activity Cost Pools Blue Black Red Purple
1. Production Preparation: $3,333.5 $3,333.5 $2,533.46 $800.04 2. Color Change-over: 3,042 760.5 3,467.88 730.08 3. Records Maintenance: 1,000 800 180 20 4. Computer System Operations: 2,666.5 2,666.5 2,026.54 639.96 5. Records Keeping in Computer: 1,000 800 180 20 6. Machinery, Maintenance
& Energy: 7,000 5,600 1,260 140 7. Parts Administrations
(Indirect Fringe): 2,000 2,000 2,000 2,000 8. Direct Fringe: 4,000 3,200 720 80
Total: $24,042 $19,160.5 $12,367.88 $4,430.08
Direct Costs: 1. Direct Material: $25,000 $20,000 $4,680 $550 2. Direct Labor: 10,000 8,000 1,800 200
Total costs: $50,042 $47,160.5 $18,847.88 $5,180.08
Calculations:
Overhead Costs: 1. Blue: 50 runs * $66.67/run = $3,333.5
Black: 50 runs * $66.67/run = $3,333.5
Red: 38 runs * $66.67/run = $2,533.46
Purple: 12 runs * $66.67/run = $800.04
2. Blue: 200 hrs * $15.21/setup hr = $3,042
Black: 50 hrs * $15.21/setup hr = $760.5
Red: 228 hrs * $15.21/setup hr = $3,467.88
Purple: 48 hrs * $15.32/setup hr = $730.08
3. Blue: 50,000 units * $0.02/unit = $1,000
Classic Pen Company
Professor Vanover
Management 30B
03/12/2013
Assignment #1:
Assignment #2:
The Production Preparation, Records Maintenance, Computer System Operation, and Records Keeping in Computer were the four new activities Dempsey likely have identified, which Dempsey interviewed the department head in charge of indirect labor and the manager of the Data Center and the Management Information System departments for information.
Assignment #3:
Overhead Costs:
Activity Cost Pools Blue Black Red Purple
1. Production Preparation: $3,333.5 $3,333.5 $2,533.46 $800.04 2. Color Change-over: 3,042 760.5 3,467.88 730.08 3. Records Maintenance: 1,000 800 180 20 4. Computer System Operations: 2,666.5 2,666.5 2,026.54 639.96 5. Records Keeping in Computer: 1,000 800 180 20 6. Machinery, Maintenance
& Energy: 7,000 5,600 1,260 140 7. Parts Administrations
(Indirect Fringe): 2,000 2,000 2,000 2,000 8. Direct Fringe: 4,000 3,200 720 80
Total: $24,042 $19,160.5 $12,367.88 $4,430.08
Direct Costs: 1. Direct Material: $25,000 $20,000 $4,680 $550 2. Direct Labor: 10,000 8,000 1,800 200
Total costs: $50,042 $47,160.5 $18,847.88 $5,180.08
Calculations:
Overhead Costs: 1. Blue: 50 runs * $66.67/run = $3,333.5
Black: 50 runs * $66.67/run = $3,333.5
Red: 38 runs * $66.67/run = $2,533.46
Purple: 12 runs * $66.67/run = $800.04
2. Blue: 200 hrs * $15.21/setup hr = $3,042
Black: 50 hrs * $15.21/setup hr = $760.5
Red: 228 hrs * $15.21/setup hr = $3,467.88
Purple: 48 hrs * $15.32/setup hr = $730.08
3. Blue: 50,000 units * $0.02/unit = $1,000
Cited: Garrison, Ray H., Eric W. Noreen, and Peter C. Brewer. Managerial Accounting. 14th ed. New York: McGraw-Hill/Irwin, 2012. Print.