High Country Outfitters, Inc., makes backpacks for large sporting goods chains that are sold under the customers store brand names.

High Country Outfitters, Inc., makes backpacks for large sporting goods chains that are sold

under the customers store brand names. The accounting department has identified the following

overhead costs and cost drivers for the next year:

Overhead Item

Expected Costs

Cost Driver

Maximum Quantity

Setup costs……………………$936,000

Number of Setups…………………..7200

Ordering costs…..…………….$240,000

Number of orders…………..………60,000

Maintenance…………………..$1,200,000

Number of machine hours……..80,000

Power………………………………$120,000

Number of kilowatt

hours……….600,000

Total predicted direct labor hours for next year is 60,000. The following data are for tow recently

completed jobs:

Job 201

Job 202

Cost of Direct Materials

$13,500

$15,000

Cost of Direct Labor

$19,125

$71,250

Number of units completed

1,125

915

Number of direct labor hours

270

330

Number of setups

18

22

Number of orders

24

45

Number of machine hours

540

450

Number of kilowatt hours

270

360

Required:

a) Determine the unit cost for each job using a traditional plantwide overhead rate based on

direct labor hours

b) Determine the unit cost for each job using ABC (Round answers to two decimal places).

c) As the manger of High Country, is there additional information that you would want to

help you evaluate the pricing and profitability of Jobs 201 and 202?

d) Assuming the company has been using the method required in part a, how should

management react to the finding in part b?

Calculate Your Essay Price
(550 words)

Approximate price: $22

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
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