Excerpt from Dissertation:
Managerial Analysis
RD activities get caught in four private pools with the subsequent annual costs.
Market evaluation $1, 050, 000
Item design a couple of, 350, 500
Product development 3, 600, 500
Prototype testing 1, 4 hundred, 000
Total
Activities Expense Drivers Predicted Drivers
Marketplace analysis Several hours of analysis 12-15, 000 several hours
Product design Number of designs 2, 500 designs
Product development Number of items 90 items
Prototype screening Number of tests 500 checks
(a) Compute the activity-based overhead rate for each activity cost pool area
Activity-based over head rate sama dengan total price range overhead / basis
= 1, 050, 000 / 15, 000
= seventy dollars per hour (Market Analysis)
Activity-based overhead price = total budget overhead/basis
= 2, 350, 000 / a couple of, 500
= $940 every design (Product Design Number)
Activity-based over head rate = total price range overhead/basis
sama dengan 3, 600, 000 as well as
=$40, 1000 per item (Product expansion number)
Activity-based overhead rate = total budget overhead/basis
= 1, 400, 500 / five-hundred
= $2, 800 every test (Number of tests)
(b) Simply how much cost billed to an in one facility manufacturing section that consumed 1, 800 hours of market research time, provided 280 patterns relating to twelve products, and 92 executive tests demands?
=Total Gross annual Cost for Market Examination / Range of Hours of Analysis
= you, 050, 000 / 1850
= $583. 333 per hour (Market Analysis)
= Total Annual Cost for Item Design as well as Total Number of Designs
= 2, 350, 000 / 280
= $8, 392. 86 per design (Product Design)
sama dengan Total Gross annual Cost intended for Product Development as well as Total Number of goods
= 3, 600, 1000 / 15
= $360, 000 every product (Product Development)
sama dengan Total Annual Costs pertaining to Number of Checks / Count of Checks
= 1, 400, 1000 / ninety two
=$15, 217. 39 per test (Prototype Testing)
(c) How much expense would serve as the basis for pricing an RD wager with another company on a contract that will consume 800 hours of research time, require 178 styles relating to 3 products, and result in 75 engineering tests?
=Total Annual Cost to get Market Research / Volume of Hours of research
= one particular, 050, 1000 / 800
= $5, 898. 88 per hour (Market Analysis)
= Total Twelve-monthly Cost to get Product Design and style / Total Number of Styles
= two, 350, 500 / a hundred and seventy-eight
= $13, 202. 25 per design and style (Design Development)
= Total Annual Price for Product Development / Total Number of Products
= 3, six hundred, 000 as well as 3
= $1, two hundred, 000 per product (Product Development)
sama dengan Total Gross annual Costs pertaining to Number of Assessments / Count of Checks
= 1, 400, 500 / 75
= 20 dollars, 000 per test (Prototype Testing)
(d) What is the power to Best Manufacturing of applying activity-based costing to
