production of Android01

The production of Android01 will share some production facilities and service divisions with Processor01. Fixed costs are $5 million per year, and will be assigned at the rate of 30 percent to Android01 and 70 percent to Processor01.
project_3_step_1_q1.docx

Unformatted Attachment Preview

Don't use plagiarized sources. Get Your Custom Essay on
production of Android01
Just from $13/Page
Order Essay

You have been asked to look at production options for the
Android01, since production methods and allocation of costs
have implications for cost per unit. Two alternative methods of
production are being considered. Begin by gathering data (using
financial information in decision making), then determine the
suitability of the project.
The production of Android01 will share some production
facilities and service divisions with Processor01. Fixed costs are
$5 million per year, and will be assigned at the rate of 30
percent to Android01 and 70 percent to Processor01.
The variable cost of the production facilities and service
divisions is $25 million per year. The square footage of factory
space and labor needed for the production of 500 units of
Processor01 and 300 units of Android01 are listed below.
Processor01 (500 units)
Android01 (300 units)
Square Feet
70,000
30,000
The remaining cost for the production of Android01 is for
components, at $25,000 per unit.
Question 1: In Method B, what would be the cost per unit of
producing Android01 using factory space as the allocation
basis? What would be the cost per unit using labor as the
allocation basis?
Before starting on your calculations, review materials
on production cost allocation.
Labor
120
80
Submit your Allocation of Costs Report and Calculations to the
dropbox below. Submit a spreadsheet showing your calculations
in Excel and provide a narrative analysis in Word. Please note
that narrative in this Project does not mean audio. It rather
means a presentation of the results of your analysis using words
and the important numbers. Your narrative analysis should
summarize the results of your analysis and make
recommendations for the benefit of company.
An alternate method of assigning costs is activity-based
costing.The major activities for the production of both
Processor01 and Android01 are fabricator setup and component
assembly. There are 500 units of Processor01 and 300 units of
Android01 produced every year. There will be a total of 25,000
setups per year for at a total cost of $10 million. Each unit of
Android01 will require 40 setups. There will be a total of
125,000 assemblies per year at a total cost of $15 million. Each
unit of Android01 will require 180 assemblies. The remaining
cost for the production of Android01 is for components, at
$25,000 per unit.

Purchase answer to see full
attachment

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency

Order your essay today and save 15% with the discount code ESSAYHELP