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Manageril Acct

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Submitted By taylorgoodwine6
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Case #2 – Performance Drinks: Applying Activity Based Costing
Taylor Goodwine

Davenport University

December 11, 2015

1.
Cost-Driver Rate= AC/AV (Ex: 22,500/85=264.70) Particular | Amount | Equipment Set Ups | Production Runs | Number of Products | Machine-Hour Capacity | Indirect Labor | $55,000 | $11,000 | $24,750 | $8,250 | $11,000 | Fringe Benefits on Indirect Labor | $24,750 | 4950 | 11,138 | 3,713 | 4,950 | Utilities | $5000 | 250 | 3,250 | - | 1,500 | Processing Equipment Depreciation | $10,000 | - | 10,000 | - | - | Preventive Maintenance | $10,000 | 4,000 | 3,000 | - | 3,000 | Information Technology | $23,000 | 2300 | 3450 | 16,100 | 1,150 | Total | $127,750 | 22,500 | 55,588 | 28,063 | 21,600 | Total Cost Drive Quantity | | 85 | 250 | 4 | 20,000 | Cost Driver Rate | | $264.71 | $222.35 | $7.015.75 | $1.08 |

2.
PER UNIT COST FOR EACH PRODUCT Basic Hydration Intensity Post Workout Total | Direct Costs | Direct Materials 40,000 50,000 31,000 33,000 154,000 | Direct Labor 25,000 20,000 10,000 18,000 73,000 | Fringe Benefit(DL) 11,250 9,000 4,500 8,100 32,850 | Manufacturing OH | Equipment Set Ups 15 15 50 5 85 | Cost Driver Rate 264.71 264.71 264.71 264.71 264.71 | Total 3,970.59 3,970.59 13,235.29 1,323.53 22,500.00 | Production Runs 125 65 35 25 250 | Cost Driver Rate 222.35 222.35 222.35…...

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