wilkerson company
DESCRIPTION
FRATRANSCRIPT
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Wilkerson ABC Costs at Actual VolumeActivity Activity Cost Driver Activity CostMachine Components Machine Hours 336000Set up Machines Number of Prod Runs 40000Receive ans Schedule Number of Prod Runs 180000Paking and Shipment Number of Shipments 150000Engineering Support Engineering Hours 100000
Cost AllocationProduct wise Activity Base
Volves PumpsMachine Components 3750 6250Set up Machines 10 50Receive ans Schedule 10 50Paking and Shipment 10 70Engineering Support 250 375
Cost CalculationTotal Cost
Production (Units) 7500 12500Direct Material Cost 120000 250000Direct Labour Cost 75000 156250Manufecturing OverheadsMachine Components 112500 187500Set up Machines 2500 12500Receive ans Schedule 11250 56250Paking and Shipment 5000 35000Engineering Support 20000 30000Total Maufecturing Overhead 151250 321250Total Cost 346250 727500
Unit CostDirect Material Cost 16.00 20.00Direct Labour Cost 10.00 12.50
Machine Components 15.00 15.00Set up Machines 0.33 1.00Receive ans Schedule 1.50 4.50Paking and Shipment 0.67 2.80
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Engineering Support 2.67 2.40Total Maufecturing Overhead 20.17 25.70Total Cost 46.17 58.20Price 86.00 87.00Profit 39.83 28.80Profit Margin 46% 33%
VolvesOld ABC
Direct Material Cost 16.00 16.00Direct Labour Cost 10.00 10.00Overheads 30.00Machine Components 15.00Set up Machines 0.33Receive ans Schedule 1.50Paking and Shipment 0.67Engineering Support 2.67Total 56.00 46.17
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Wilkerson ABC Costs at Actual VolumeActivity Base Cost Driver Rate
11200 30160 250160 1125300 500
1250 80
Cost AllocationProduct wise Activity Base Allocated Cost
Flow Controllers Volves Pumps1200 112500 187500
100 2500 12500100 11250 56250220 5000 35000625 20000 30000
151250 321250
Cost CalculationTotal Cost
400088000 45800040000 271250
36000 33600025000 40000
112500 180000110000 150000
50000 100000333500 806000461500 1535250
Unit Cost22.0010.00
9.006.25
28.1327.50
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12.5083.38
115.38105.00-10.38
-10%
Pumps Flow ControllerOld ABC Old
20.00 20.00 22.0012.50 12.50 10.0037.50 30.00
15.001.004.502.802.40
70.00 58.20 62.00
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Wilkerson ABC Costs at Actual Volume
Cost AllocationAllocated Cost
Flow Controllers Total36000 33600025000 40000
112500 180000110000 150000
50000 100000333500 806000
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Flow ControllerABC
22.0010.00
9.006.25
28.1327.5012.50
115.38
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Wilkerson ABC Costs at Actual VolumeActivity Activity Cost DriverMachine Components Machine HoursSet up Machines Number of Prod Runs Receive ans Schedule Number of Prod Runs Paking and Shipment Number of ShipmentsEngineering Support Engineering Hours
Cost AllocationProduct wise Activity Base
VolvesMachine Components 3750Set up Machines 10Receive ans Schedule 10Paking and Shipment 10Engineering Support 250
Cost CalculationTotal Cost
VolvesProduction (Units) 7500Direct Material Cost 120000Direct Labour Cost 75000Manufecturing OverheadsMachine Components 105000Set up Machines 2222Receive ans Schedule 10000Paking and Shipment 3750Engineering Support 20000Total Maufecturing Overhead 140972Total Cost 335972Sales 645000Profit 309028
Unit CostDirect Material Cost 16.00
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Direct Labour Cost 10.00
Machine Components 14.00Set up Machines 0.30Receive ans Schedule 1.33Paking and Shipment 0.50Engineering Support 2.67Total Maufecturing Overhead 18.80Total Cost 44.80Price 86.00Profit 41.20Profit Margin 48%
Income StatementGross MarginValves 309028Pumps 388889Flow Controllers 3678
701594Capacity Cost 84344Total Gross Margin 617250General, Admin, Selling o\h 559650Operating Profit 57600
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Wilkerson ABC Costs at Actual VolumeActivity Cost Activity Base Cost Driver Rate
336000 12000 2840000 180 222
180000 180 1000150000 400 375100000 1250 80
Cost AllocationProduct wise Activity Base
Pumps Flow Controllers Unused Capacity6250 1200 800
50 100 2050 100 2070 220 100
375 625 0
Cost CalculationTotal CostPumps Flow Controllers Total
12500 4000250000 88000 458000156250 40000 271250
175000 33600 31360011111 22222 3555650000 100000 16000026250 82500 11250030000 50000 100000
292361 288322 721656698611 416322 1450906
1087500 420000 2152500388889 3678 701594
Unit Cost20.00 22.00
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12.50 10.00
14.00 8.400.89 5.564.00 25.002.10 20.632.40 12.50
23.39 72.0855.89 104.0887.00 105.0031.11 0.92
36% 1%
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Wilkerson ABC Costs at Actual Volume
Cost AllocationAllocated Cost
Volves Pumps Flow Controllers105000 175000 33600
2222 11111 2222210000 50000 100000
3750 26250 8250020000 30000 50000
140972 292361 288322
Cost CalculationTotal Cost
Unit Cost
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Wilkerson ABC Costs at Actual Volume
Cost AllocationAllocated Cost
unused capacity Total22400 336000
4444 4000020000 18000037500 150000
0 10000084344 806000
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ABC 1ABC 2