Compute the total costs per unit of maxiflow and alaska

Fixed costs do not change based on production. Examples of fixed costs include rent, utilities and salary of employees. Variable costs vary based on the number of units produced such as raw materials, packaging and wages of hourly workers. The cost per unit is based on the total fixed cost, variable cost and the number of units produced during an accounting period.

Compute the total costs per unit of maxiflow and alaska

Case 3A Auerbach Enterprises. In this case, you are provided the overhead cost data for the Auerbach Enterprises. Management needs advice in determining how to allocate these costs utilizing a job order costing system either department-wide or company-wide.

Address Questions 1 through 5 located at the end of the case.

Compute the total costs per unit of maxiflow and alaska

The written report should be properly formatted according to APA guidelines and demonstrate research and critical thinking skills. Conclusions and recommendations should be supported by at least two scholarly sources from the Ashford Library or other external sources, excluding the textbook.

For Questions 1 through 4, you will need to complete several calculations. Be sure to label and clearly identify your work to demonstrate your understanding of the concept even if you arrive at the incorrect answer.

The calculations should be included as part of your analysis and written recommendations required for submission. The written analysis should be supported by at least two scholarly sources, excluding the textbook.

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Week 2 Written Assignment should: The company designs its products with flexibility to accommodate many makes and models of automobiles and trucks.

MaxiFlow uses a few complex fabricated parts, but these have been found easy to assemble and test. On the other hand, Alaska uses many standard parts but has a complex assembly and testing process.

Compute the total costs per unit of maxiflow and alaska

Auerbach Enterprises uses machine hours as the cost driver to assign overhead costs to the air conditioners. The company has used a company-wide predetermined overhead rate in past years, but the new controller, Bennie Leon, is considering the use of departmental overhead rates beginning with the next year.

The following planning information is available for the next year for each the four manufacturing departments within the company: Overhead Machine Costs Hours Radiator parts fabrication…………. A production batch of 20 units requires the following number of hours in each department: MaxiFlow Alaska Radiator parts fabrication……….

Compute the departmental overhead rates using machine hours as the cost driver. Compute a company-wide overhead rate using machine hours as the cost driver. Compute the overhead costs per batch of MaxiFlow and Alaska assuming: Compute the total costs per unit of MaxiFlow and Alaska assuming: Is one product affected more than the other by use of departmental rates rather than a company-wide rate?

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Why or why not? Use the order calculator below and get ordering with essaygeek. Contact our live support team for any assistance or inquiry.MaxiFlow uses a few complex fabricated parts, but these have been found easy to assemble and test.

On the other hand, Alaska uses many standard parts but has a complex assembly and testing process. MaxiFlow requires direct materials costs which total $ per unit, while Alaska’s direct materials requirements total $ per unit.

Using the information from the computer printout, develop a cost function that can be used to estimate maintenance costs at different volume levels.

Estimate the maintenance costs if expected production for the next month is 20, units. Back to Login Get New Password. x Let's create your account. First Name. MaxiFlow uses a few complex fabricated parts, but these have been found easy to assemble and test.

On the other hand, Alaska uses many standard parts but has a complex assembly and testing process. MaxiFlow requires direct materials costs which total $ per unit, while Alaska's direct materials requirements total $ per unit/5(K).

(a) To compute the total costs per unit of MaxiFlow and Alaska for company-wide rates you first need to take the direct material costs per unit from each company, your company-wide overhead costs per batch and add them together to get the total.

Read this essay on Bus Week 2 Assignment Auerbach Enterprises. Come browse our large digital warehouse of free sample essays. MaxiFlow requires direct materials costs which total $ per unit, while Alaska’s direct materials requirements total $ per unit.

Direct labor costs per unit are $75 for MaxiFlow and $95 for Alaska.

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