this question has 3 attachments which i submit them in two submission. AnimPix Inc. is a small company that creates computer-generated animations for films and television. Much of the company's workconsists of short commercials for television, but the company also does realistic computer animations for special effects in movies.The young founders of the company have become increasingly concerned with the economics of the business-particularly sincemany competitors have sprung up recently in the local area. To help understand the company's cost structure, an ABC system hasbeen designed. Three major activities are carried out in the company: animation concept, animation production, and contractadministration. The animation concept activity is carried out at the contract proposal stage when the company bids on projects. This isan intensive activity that involves individuals from all parts of the company in creating storyboards and prototype stills to be shown tothe prospective client. After the client has accepted a project, the animation goes into production and contract administration begins.Technical staff do almost all of the work involved in animation production, whereas administrative staff are largely responsible forcontract administration. The activity cost pools and their activity measures and rates are listed below:Activity Cost PoolAnimation conceptAnimation productionContract administrationActivity MeasureNumber of proposalsActivity Rate6,040 per proposal$ 7,725 per minute of animation$ 6,800 per contractMinutes of animationNumber of contractsThese activity rates include all of the costs of the company, except for the costs of idle capacity and organization-sustaining costs.There are no direct labour or direct materials costs. Preliminary analysis using these activity rates has indicated that the local commercials segment of the market may be unprofitable.This segment is highly competitive. Producers of local commercials may ask several companies like AnimPix to bid, which results in anunusually low ratio of accepted contracts to bids. Furthermore, the animation sequences tend to be much shorter for localcommercials than for other work. Since animation work is billed at standard rates according to the running time of the completedanimation, the revenues from these short projects tend to be below average. Data concerning activity in the local commercials marketappear below:LocalActivity MeasureNumber of proposalsCommercials25Minutes of animationNumber of contracts510The total sales for local commercials amounted to $180.000.Required:1. Determine the cost of the local commercials market. (Think of the local commercials market as a product.)Activity Cost PoolAnimation conceptAnimation productionContract administrationABC CostTotal

ABC stands for Activity based costing, which is a method of costing and it identifies the activities…

AnimPix Inc. is a small company that creates computer-generated animations for films and television. Much of the company's wo consists of short commercials for television, but the company also does realistic computer animations for special effects in movie The young founders of the company have become increasingly concerned with the economics of the business-particularly sinc many competitors have sprung up recently in the local area. To help understand the company's cost structure, an ABC system ha been designed. Three major activities are carried out in the company: animation concept, animation production, and contract administration. The animation concept activity is carried out at the contract proposal stage when the company bids on projects. an intensive activity that involves individuals from all parts of the company in creating storyboards and prototype stills to be shov the prospective client. After the client has accepted a project, the animation goes into production and contract administration be Technical staff do almost all of the work involved in animation production, whereas administrative staff are largely responsible fo contract administration. The activity cost pools and their activity measures and rates are listed below: Activity Cost Pool Animation concept Activity Measure Number of proposals Activity Rate $ 6,040 per proposal

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter11: Strategic Cost Management

Section: Chapter Questions

Problem 4CE: Kagle design engineers are in the process of developing a new green product, one that will...