Broadening Your Prospective Essay Example for Free

Broadening Your Prospective essay1. Compute the body process-based smasher rate for each activity cost pool. Activity-based over operate is determined by dividing estimated overhead by the estimated cost drivers. Activity cost Pool Estimated Overhead /Cost drivers=ACB Overhead Rate commercialize analysis 1,050,00015,000$70Product Design2,350,0002,500$940Product development3,600,00090$40,000Prototype testing1,400,000500$2,8002. How much cost would be charged to an in-house manufacturing section that consumed 1,800 hours of market analysis time, was provided 280 designs relating to 10 yields, and requested 92 engineering tests?The total charged to an in-house manufacturing department would be $1,046,800. This dollar amount is determined by multiplying the overhead rates of each activity to the amount consumed for that activity and added together for a total. (1,800*70= 126,000), (280*940=263,200) (10*40,000=400,000), (2,800*92=257,600)3. How much cost would serve as the basi s for determine an RD bid with an after-school(prenominal) company on a contract that would consume 800 hours of analysis time, require 178 designs relating to 3 products, and result in 70 engineering tests?$539,320 would serve as the basis for pricing an RD bid with an exterior company because that dollar amount is the breakeven point. (800*70=56,000), (178*940=167,320), (3*40,000= 120,000), (70*2,800=196,000) 4. What is the benefit to pattern Manufacturing of applying activity-based costing to its RD activity for both in-house and outside charging purposes? The benefit to Ideal Manufacturing of applying activity-based costing to its RD activity for both in-house and outside charging purposes is it will allow the company to light upon control of the operating costs of the department.Activity-based costing allows a company to appropriately assign overhead head cost. For example, Ideal manufacturing activities fell into four pools and activity-based costing helped the company to properly allocate its overhead dollars. Under exploitation or over using overhead dollars means the company has to supplement those funds from or to some other activity which is a waste to the company. The basis of activity-based costing is to assign cost only to those activities of a product that is actually using the activity in essences cutting costs. This is not only a benefit to Ideal Manufacturing but to any company that is looking to become more efficient and effective.