Auerbach Enterprises

Satisfactory Essays
Topics: Costs, Variable cost
Week 2 Written Assignment: Auebach Enterprises
These are not presented in scholarly discussion, but are simply the solutions. Student papers are expected to be written in scholarly discussion following APA formatting guidelines incorporating solutions and supported with scholarly research.
Solutions:
1.

Overhead Costs
Machine Hours
Departmental Rates
Radiator parts fabrication $ 80,000.00 10,000 $ 8.00
Radiatior assembly, weld, and test 100,000.00 20,000 $ 5.00
Compressor parts fabrication 120,000.00 5,000 $ 24.00
Compressor assembly and test 180,000.00 45,000 $ 4.00 Total $ 480,000.00 80,000

2.
Overhead Costs
Machine Hours
Company-Wide Rate Total $ 480,000.00 80,000 $ 6.00

3a.

Maxiflow
Departmental Rate
Department Cost
Radiator parts fabrication
28
$ 8.00 $ 224.00
Radiatior assembly, weld, and test
30
$ 5.00 $ 150.00
Compressor parts fabrication
32
$ 24.00 $ 768.00
Compressor assembly and test
26
$ 4.00 $ 104.00 Total Batch Cost

$ 1,246.00 OH Cost per unit

$ 62.30

Alaska
Departmental Rate
Department Cost
Radiator parts fabrication
16
$ 8.00 $ 128.00
Radiatior assembly, weld, and test
74
$ 5.00 $ 370.00
Compressor parts fabrication
8
$ 24.00 $ 192.00
Compressor assembly and test
66
$ 4.00 $ 264.00 Total Batch Cost

$ 954.00 OH Cost per unit

$ 47.70
3b.

Maxiflow
Company-wide Rate
OH Batch Cost
Total machine hours
116
$ 6.00 $ 696.00 OH Cost per unit

$

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