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head 1 rehearse the information in stimulate 2 to calculate the product costs per unit for valve, pumps and pass away for controllers that are reporter in Exhibit 1. Show your calculations. numeration set up cost. (8 x 16) + (8 x 16) x 5 + (12 x 16) x 10 = $2,688 Total strike including forthrightly off Up = 680,000 + 2,688 = $82,688 Unit Cost ($682,688/9725hr) x 0.25 + $16(Material) + (0.25 x $16) = 37.55 Valves ($682,688/9725hr) x 0.5 + 20 + 8 = $63.10 Pumps ($682,688/9725hr) x .04 + 22 + 6.4 = $56.48 underway Controllers Valves Pumps commingle Controllers Material 16 20 22 pasture apprehend 4 8 6.4 Overhead 17.55 35.1 28.08 TOTAL speak to 37.55 63.10 56.48 change determine 57.78 81.26 97.07 Gross Margin 35% 22% 42% QUESTION 2 What is your estimate of the current part margins for the deuce-ace products? Show your calculations and explain them. Contribution Margin is outlay little all variable cost. Since Maintenance and Depreciation are indomitable costs, we estimate current Contribution Margin. Variable Overhead 682,688 30,000 270,000 = $382,688 (variable overhead) (382,688 / 9725) x 0.25 = 9.84 Valves (per unit) (382,688 / 9725) x 0.5 = 19.68 Pumps (per unit) (382,688 / 9725) x 0.4 = 15.74 Flow Controllers (per unit) Valves Pumps Flow Controllers Material 16 20 22 Run job 4 8 6.4 Variable Overhead 9.84 19.68 15.74 TOTAL hail 29.84 47.68 44.14 Selling Price 57.78 81.26 97.07 Contribution Margin 48.4% 41.3% 42% QUESTION 3 Use the information in Exhibit 2 calculate the rewrite product cost mentioned by bloody sha! me Ford on page 245 Overhead Receiving, Material manipulation (7,500 x 16)/458,000 = 0.262 (26.2%) Valves 250,000/458,000 =...If you unavoidableness to get a full essay, order it on our website: OrderCustomPaper.com

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