Using abc as the benchmark calculate the percentage error

Assignment Help Accounting Basics

Reference no: EM13597057

Glock company has identified hte following overhead activities, costs, and activity drivers for the coming year:

Activity Expected cost Activity driver Activity capacity
Setting up equipment 252000 number of setups 300
ordering materials 36000 number of orders 1800
Machining 252000 machine hours 21000
Receiving 60000 receiving hours 2500

Glock produces two models of cell phones with the following expected activity demand:

Model A Model B
Units completed 10000 20000
Number of setups 200 100
number of orders 600 1200
Machine hours 12000 9000
Receiving hours 750 1750

Required:
1) Determine the total overhead assigned to each product using the four activity drivers.
2) Determine the total overhead assigned to each model using the two most expensive activities.
3) Using ABC as the benchmark, calculate the percentage error and comment on the accuracy of the reduced system. Explain why this approach may be desirable.

Reference no: EM13597057

Questions Cloud

Mccawl company has developed value-added standards for four : mccawl company has developed value-added standards for four activities purchasing parts receiving parts moving parts

Julie has just completed the rigorous process of becoming a : julie has just completed the rigorous process of becoming a certified financial planner. she is looking forward to

The manager can invest in an additional project that would : the manager of a stock division projects the following for the next year sales185000 operating income 60000 operating

What conditions must be present for a translational : what conditions must be present for a translational equilibrium and b rotational equilibrium of a rigid body?if these

Using abc as the benchmark calculate the percentage error : glock company has identified hte following overhead activities costs and activity drivers for the coming year activity

Silver iodide agl is less soluble in aqueous ammonia than : silver iodide agl is less soluble in aqueous ammonia than either agbr or agcl. what two factors could contribute to

Lampshire inc is considering using stocks of an old raw : lampshire inc. is considering using stocks of an old raw material in a special project. the special project would

Barb and john reed want to know how much they must deposit : barb and john reed want to know how much they must deposit in a retirement savings account today to have payments of

Find the vertices of the image of deltaabc under the : let a -47 b 10 and c56a. find the vertices of the image of deltaabc under the translation t-25b. to what complex number

User Account

All Pages