Wilkerson Company Case Summary
AIM 6202 – Wilkerson Company
Everything you need is in the case and in the requirements provided below. I will not provide any interim feedback on this case so please do not send me any preliminary analysis to check whether you are “on track.”
Address the issues/questions provided below in your case report. The format of the write up can be either in the form of detailed answers to each of the questions below or as a comprehensive, smooth-flowing case analysis. No page limits and you can include any number of exhibits. Please submit the case through the ELearning assignment drop box tool. One submission per group is enough.
I have observed in the past that the best reports are from those groups where all the group members …show more content…
How does Wilkerson’s existing cost system operate? Develop a diagram to show how costs flow from factory expense accounts to products.
4. Develop and diagram an activity-based cost (ABC) model using the information in the case.
5. Estimate the ABC-based cost and profitability of Wilkerson’s three product lines by estimating the various activity cost driver rates using the manufacturing overhead amount and actual total usage data of the various activity cost drivers in March 2000 provided in Exhibit 4. Why are these costs and profits different from the product costs reported in Exhibit 2? What causes any shifts in cost and profitability?
6. Repeat the ABC cost and profitability analysis in (5) by estimating the various activity cost driver rates using the March 2000 manufacturing overhead amount (because the heavy demand was handled without any production delays or use of overtime) and the “heavy demand” capacity information provided in the very last sentence of the case in page 3. Which of these, in your opinion, more accurately captures the consumption of factory resources by Wilkerson’s products?
7. Estimate the total overhead applied to the three products, respectively, under (5) and (6). Why are they different? How do you interpret the difference in this total applied
Everything you need is in the case and in the requirements provided below. I will not provide any interim feedback on this case so please do not send me any preliminary analysis to check whether you are “on track.”
Address the issues/questions provided below in your case report. The format of the write up can be either in the form of detailed answers to each of the questions below or as a comprehensive, smooth-flowing case analysis. No page limits and you can include any number of exhibits. Please submit the case through the ELearning assignment drop box tool. One submission per group is enough.
I have observed in the past that the best reports are from those groups where all the group members …show more content…
How does Wilkerson’s existing cost system operate? Develop a diagram to show how costs flow from factory expense accounts to products.
4. Develop and diagram an activity-based cost (ABC) model using the information in the case.
5. Estimate the ABC-based cost and profitability of Wilkerson’s three product lines by estimating the various activity cost driver rates using the manufacturing overhead amount and actual total usage data of the various activity cost drivers in March 2000 provided in Exhibit 4. Why are these costs and profits different from the product costs reported in Exhibit 2? What causes any shifts in cost and profitability?
6. Repeat the ABC cost and profitability analysis in (5) by estimating the various activity cost driver rates using the March 2000 manufacturing overhead amount (because the heavy demand was handled without any production delays or use of overtime) and the “heavy demand” capacity information provided in the very last sentence of the case in page 3. Which of these, in your opinion, more accurately captures the consumption of factory resources by Wilkerson’s products?
7. Estimate the total overhead applied to the three products, respectively, under (5) and (6). Why are they different? How do you interpret the difference in this total applied