(WIP) ACC 350 Exam 1 Study Material
Work in Process
Work in Process
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
2. For each activity, identify an activity driver and calculate the activity driver rates.<br />
<strong>Material</strong> Handling-- # of moves (in batches)<br />
Number of batches:<br />
Standard: 15,000 units / 30 units/batch = 500 batches<br />
Unique: 5,000 units / 10 units/batch = 500 batches<br />
Number of moves:<br />
Standard: 500 batches * 2 moves/batch = 1,000 moves<br />
Unique: 500 batches * 3 moves/batch = 1,500 moves<br />
2,500 moves<br />
$30,000 / 2,500 moves = $12/move<br />
Machine Set-up—Set-up hours<br />
Number of set-up hours:<br />
Standard: 500 batches * 4 hrs/batch = 2,000 hrs<br />
Unique: 500 batches * 6 hrs/batch = 3,000 hrs<br />
5,000 hrs<br />
$100,000 / 5,000 hrs = $20/set-up hr<br />
Engineering Support—Engineering hours<br />
$150,000 / 3,000 hrs = $50/hr<br />
Power for Machines—Machine hours<br />
Number of machine hours<br />
Standard: 15,000 units / 7.5 units/MH = 2,000 MHs<br />
Unique: 5,000 units / 2.5 units/MH = 2,000 MHs<br />
4,000 MHs<br />
$80,000 / 4,000 MHs = $20/MH<br />
Providing Space—Equally to each product line
Change language