Wilkerson Case Study on Costing
Autor: dennis221990 • October 19, 2016 • Case Study • 400 Words (2 Pages) • 934 Views
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Analysis
Traditional Costing System | ||||||
| Valves (in $) | Pumps (in $) | Flow Controllers (in $) | |||
Production(units) | 7500 | 12500 | 4000 | |||
| per unit | Total | per unit | total | per unit | total |
Direct Labor Cost | 10 | 75000 | 12.5 | 156250 | 10 | 40000 |
Direct Material Cost | 16 | 120000 | 20 | 250000 | 22 | 88000 |
Manufacturing Overhead (@300%) | 30 | 225000 | 37.5 | 468750 | 30 | 120000 |
Total(in$) | 56 | 420000 | 70 | 875000 | 62 | 248000 |
Activity Based Costing | ||||||
Valves (in $) | Pumps (in $) | Flow Controllers (in $) | ||||
Production(units) | 7500 | 12500 | 4000 | |||
per unit | total | per unit | total | per unit | total | |
Direct Labor Cost | 10 | 75000 | 12.5 | 156250 | 10 | 40000 |
Direct Material Cost | 16 | 120000 | 20 | 250000 | 22 | 88000 |
1. Machine Related Expenses | 15 | 112500 | 15 | 187500 | 9 | 36000 |
Rate = (336000/11200) = 30 per hr | ||||||
2. Setup Labour | 0.333333333 | 2500 | 1 | 12500 | 6.25 | 25000 |
Rate = (40000/160) = 250 per production run | ||||||
3. Receiving and Production Control | 1.5 | 11250 | 4.5 | 56250 | 28.125 | 112500 |
Rate = (180000/160) = 1125 per run | ||||||
4. Engineering | 2.666666667 | 20000 | 2.4 | 30000 | 12.5 | 50000 |
Rate = (100000/1250) = 80 per hr | ||||||
5. Packaging and Shipping | 0.666666667 | 5000 | 2.8 | 35000 | 27.5 | 110000 |
Rate = (150000/300) = 500 per shipment | ||||||
Total Cost | 46.16666667 | 346250 | 58.2 | 727500 | 115.375 | 461500 |
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