Auerbach Enterprises

 Auerbach Businesses Essay

COACH 630 Week 2 Project


Ashford University

Managerial Accounting

BUS 630

Doctor Barrett

The spring 14, 2013

BUS 630 Week two Assignment

MaxiFlow requires immediate materials costs which total $135 per unit, when Alaska's immediate materials requirements total $110 per product. Direct labor costs every unit will be $75 pertaining to MaxiFlow and $95 for Alaska. Auerbach Enterprises uses machine hours as the charge driver to assign overhead costs to the air conditioning units. The company has used a company-wide predetermined overhead rate in past years, but the fresh controller, Bennie Leon, can be considering the make use of departmental overhead rates you start with the next year. The following organizing information exists for the next 12 months for each the four production departments within the company: Over head Machine

Costs Hours

Radiator parts fabrication.............. $ eighty, 000 12, 000

Rad assembly, welds, and check.... 100, 000 20, 000

Compressor parts fabrication.......... 120, 000 5, 000

Air compressor assembly and test........ one hundred and eighty, 000 forty five, 000

Total $480, 1000 80, 500

Normally, the air conditioners are in batch sizes of twenty at a time. A production set of 20 units needs the following volume of hours in each office: MaxiFlow Ak

Radiator parts fabrication........... 28 16

Radiator assembly, weld, and test....... 30 74

Compressor parts fabrication......... 32 8

Converter assembly and test......... twenty six 66

Total 116 164

1 . В В В Compute the departmental overhead rates applying machine several hours as the cost driver. В

В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В 

Departmental Expense RatesВ В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В |Radiator Parts Manufacture |$80, 000/10, 000 = 8 |В | |Radiator Assembly, Welds, Test |100, 000/20, 500 = five |В | |Compressor Parts Fabrication |120, 000/5, 500 = 24 |В | |Compressor Set up, Test |180, 000/45, 500 = four |В

2 . В В В Compute a company-wide cost to do business rate using machine hours as the cost driver. В

Total Expense HoursВ В В В В В В В В В $480, 000

Total Machine HoursВ В В В В В 80, 1000 В

$480, 000/80, 000 = six company-wide expense rate

three or more. В В В Calculate the overhead costs per set of MaxiFlow and Alaska assuming: В

(a)В The company-wide price.

MaxiFlowВ В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В Ak В

|Radiator parts manufacturing |28 hours periods. * six = 168 |16 hrs. * 6th =В В 96 | |Radiator assembly, welds, and evaluation |30 days. * 6th = one hundred and eighty |74 hours. * 6 = 444 | |Compressor parts manufacture |32 hrs. * 6 = hundranittiotv? |В eight hrs. 2. 6 =В В 48 | |Compressor assembly and check |26 days. * 6 = one hundred and fifty six |66 hours periods. * 6th = 896 | |Total |В В В В В В В В В В В В В В В В В В В В 698 |В В В В В В В В В В В В В В В В В you, 484

(b) The departmental costs.

MaxiFlowВ В В В В В В В В В В В В В В В В В В В В В В В Alaska В

|Radiator parts architecture |В |28 hrs. 5. 8 =В В В 224 |16 hrs. 5. 8 sama dengan 128 | |Radiator assembly, weld, and test |В |30 days. * a few =В В 150 |74 hrs. * your five =В 370 | |Compressor parts fabrication |В |32 hrs. 5. 24 sama dengan 768 |8 hrs. 2. 24 = 192 | |Compressor set up and test |В |26 hrs. * 4 =В В 104 |66 hrs. * 4 sama dengan...


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