question archive Come-On-In Manufacturing produces two types of entry doors: Deluxe and Standard
Come-On-In Manufacturing produces two types of entry doors: Deluxe and Standard
Subject:BusinessPrice: Bought3
Come-On-In Manufacturing produces two types of entry doors: Deluxe and Standard. The assignment basis for support costs has been direct labour dollars. For 2019, Come-On-In compiled the following data for the two products: Deluxe Standard Sales units 50,000 400,000 Sales price per unit $650.00 $475.00 Direct material and labour costs per unit $180.00 $130.00 Manufacturing support costs per unit $80.00 $120.00 Last year, Come-On-In Manufacturing purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an ABC analysis could be valuable to help evaluate a product mix and promotion strategy for the next sales campaign. She obtained the following ABC information: Activity Setups Machine Related Packing Cost Driver # of setups # of machine hours # of shipments Cost Deluxe $ 500,000 400 setups $46,500,000 300,000 machine hours $ 5,000,000 200,000 shipments Standard 100 setups 300,000 machine hours 50,000 shipments Required: Using the current traditional (simple) costing system, determine the estimated: A. total cost of manufacturing one unit for each type of door B. profit per unit for each type of door Using the activity-based costing data presented above, A. total cost of manufacturing one unit for each type of door B. profit per unit for each type of door
