Wilkerson Case

3. Wilkerson currently uses a traditional volume-based, full absorbing last brass. Each whole of product speak to consists of askly material, direct labor, and manufacturing command processing overhead embodys which are allocated based on direct labor terms at a ccc% rate. The mill hail ply diagram is shown below. quantity Manufacturing Overhead: 806,000 | Total labor cost: 271,250 | Manufacturing cost rate per labor cost: 300%| | labor cost per unit| | Manufacturing cost per unit| Valves| $10.00| $10.00*300%| $30.00| Pumps| $12.50| $12.50*300%| $37.50| carry Controllers| $10.00| $10.00*300%| $30.00| | Valves| Pumps| proceed Controllers| steer Labor| $10.00| $12.50| $10.00| channel Material| 16.00| 20.00| 22.00| Manufacturing Overhead| 30.00| 37.50| 30.00| Total cost| $56.00| $70.00| $62.00| However, Wilkerson has very tall total manufacturing cost, and its three produc ts have divers(a) consumption manners of substantiating cost. Therefore, the traditional volume-based cost system is inadequate. 4. The ABC costing diagram is shown below.

Activity Pool| weapon related expense$336,000| apparatus Labor$40,000| Receiving and production fake$180,000| Engineering$100,000| Packing and fare$150,000| greet driver| cable car arcminute11,200| exertion ravel out160| Production run160| Engineering hour1,250| # of warhead300| Rate| $30/hour| $250/run| $1,125/run| $80/hour| $ five hundred/shipment| Valves| $30*0.5| $250*10/7,500| $1,125*10/7,500| $80*250/7,500| $500*10/7,500| | $15 .00| $0.33| $1.50| $2.66| $0.67| Pumps| $3! 0*0.5| $250*50/12,500| $1,125*50/12,500| $80*375/12,500| $500*70/12,500| | $15.00| $1.00| 4.50| 2.40| $2.80| Flow controllers| $30*0.3| $250*100/4,000| $1,125*100/4,000=| $80*625/4,000| $500*220/4,000| | $9.00| $6.25| $28.13| $12.50| $27.50| Cost per unit under ABC system? | Valves| Pumps| Flow Controllers| Direct...If you motive to get a full essay, order it on our website: OrderCustomPaper.com

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