Gg Toys

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ACTG 512
GG Toys
Setup Templates

Estimation of Cost Driver Rates

Cost PoolCost (from Exhibit 1)Allocation Base (from Exhibits 1 and 4) Cost Driver Rate (= Cost / Allocation Base) Plant Management 40,00027,000$1.48
Machine Related 112,00011,200$10.00
Setup 13,333160$83.33
Receiving/Production Control63,000161$391.30
Packaging and Shipping 53,000350$151.43

Product Cost Calculations – Chicago Plant (Based on March Production Data)

Geoffrey DollGeoffrey DollSpecialty Branded Doll # 106Specialty Branded Doll # 106
TotalPer Doll (if produce 7,500)TotalPer doll (if produce 4,000 )

Direct Materials (Exhibit 3)$375,000$5$24,000$6
Direct Labor (Exhibit 3) 225,000$315,000$3.75
*Plant Management (33333 of 225K)11,1110.158,888.80$2.22 *Machine Related ($xx per hr) 1,8750.5360$0.3
*Setups (@ $xx.xx) 833.31$83.338,333.13$83.33
*Production Runs (@ $xxx) 3,913.04$391.3039,130.43$391.30 *Shipments (@ $xxx.xx) 1,514.29$151.4333,314.29$151.43 Total$619,246.64$129,026.25
Sales Price$1,575,000$21$144,000$36
Margin61% ($955,753.36)10% (14,973.35)

*(from Cost Driver Rates as calculated in top table)

Comparison of Cost Allocations

Old System New System Geoffrey DollSpecialty Branded DollGeoffrey DollSpecialty Branded Dell

Unit:
DL Related (% of doll cost)61.66%22.24%
DM Related (% of doll cost)37%35.58%
Machine Related (% of doll cost)0.31%4.49%
Total Unit Related (% of doll cost)98.97%62.32%

Batch:
Setup Related (% of doll cost)0.14%4.49%
Receiving Related (% of doll cost) 0.66%21.10%
Shipping Related (% of doll cost)0.25%15.78%
Total Batch Related (% of doll cost)1.03%41.37%

TOTAL: (unit...
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