C. Products with cycle time and practical capacity: Practical Product Cycle Time Сараcity 10,000 units 20,000 units Printer A 2.5 hours Printer B 1.25 hours A. Activities with duration drivers: 即 雷管 Activities Products Changeover Assembly Testing Rework Total Hours Printer A 1,000 12,000 8,000 8,000 8,000 25,000 Printer B 4,000 12,000 20,000 12,000 20,000 25,000 50,000 Total hours 5,000 20,000 B. Activities with consumption ratios and costs: Activities Cost ETIIIË Products Changeover Assembly Testing Assignment Rework Printer A Printer B 0.20 0.60 0.40 0.80 S155,000 S155,000 S310,000 0.80 0.40 0.60 0.20 Activity costs S75,000 S120,000 S60,000 $5,000
Simplifying the ABC System: DBC
Electan Company produces two types of printers. The company uses ABC, and all activity driv-
ers are duration drivers. Electan Company is considering using DBC and has gathered the fol-
lowing data to help with its decision.
Required:
1. Using cycle time and practical capacity for each product, calculate the total time for all pri-
mary activities.Comment on the relationship to ABC.
2. Calculate the overhead rate that DBC uses to assign costs. Comment on the relationship to
a unit-based plantwide overhead rate.
3. Use the overhead rate calculated in Requirement 2 to calculate (a) the overhead cost per
unit for each product, and (b) the total overhead assigned to each product. How does this
compare to the ABC assignments shown in Part B of the Information set?
4. What if the units actually produced were 10,000 for Printer A and 18,000 for Printer B.
Using DBC, calculate the cost of unused capacity.
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4. What if the units actually produced were 10,000 for Printer A and 18,000 for Printer B. Using DBC, calculate the cost of unused capacity. can you give me the formula
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