2024 ACC 206 – MANAGERIAL ACCOUNTING – PROJECT #2 – Ramsey Company Assignment Help
ACC 206 MANAGERIAL ACCOUNTING PROJECT 2 Fall 2015 DUE DATE TUESDAY Octtober 13 th 2023
ACC 206 – MANAGERIAL ACCOUNTING PROJECT #2 Fall 2015 DUE DATE: TUESDAY, Octtober 13 th , at the beginning of class. Ramsey Company produces speakers (Model A and Model B). Both products pass through two production departments. Model A’s production is much more labor-intensive than that of Model B. Model B is the more popular of the two speakers. The following data have been gathered for the two products: MODEL A MODEL B Units produced per year 10,000 100,000 Prime costs $150,000 $1,500,000 Direct labor hours 140,000 300,000 Machine hours 20,000 200,000 Production runs (Number of setups) 40 60 Inspection hours 800 1,200 Maintenance hours 10,000 90,000 Overhead costs: Setup costs $270,000 Inspection costs 210,000 Machining costs 240,000 Maintenance costs 270,000 Total $990,000 REQUIRED (Show and Label all supporting calculations!!!!): A. Compute the overhead cost per unit for each product by using a plantwide rate based on direct labor hours. B. Compute the overhead cost per unit for each product by using Activity Based Costing. C. Suppose that Ramsey decides to use departmental overhead rates. There are two departments: Dept. 1 (machine intensive) with a rate of $3.50 per machine hour and Dept. 2 (labor intensive) with a rate of $.90 per direct labor hour. The consumption of these two drivers is as follows: DEPT. 1 DEPT. 2 Machine hours Labor hours Model A 10,000 130,000 Model B 170,000 270,000 Compute the overhead cost per unit for each product by using departmental rates. D. Calculate the consumption ratios for Model A using the four activities: machining, production, inspection, and maintenance. What conclusion can you reach based upon these consumption ratios?