Wilkerson Case

Published: 2021-06-29 06:57:13
essay essay

Category: Business

Type of paper: Essay

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Hey! We can write a custom essay for you.

All possible types of assignments. Written by academics

GET MY ESSAY
3. Wilkerson currently uses a traditional volume-based, full absorbing cost system. Each unit of product cost consists of direct material, direct labor, and manufacturing overhead costs which are allocated based on direct labor cost at a 300% rate. The factory cost flow diagram is shown below.
Total Manufacturing Overhead: 806,000 |
Total labor cost: 271,250 |
Manufacturing cost rate per labor cost: 300% |
| Labor cost per unit | | Manufacturing cost per unit |
Valves | $10.00 | $10.00*300% | $30.00 |
Pumps | $12.50 | $12.50*300% | $37.50 |
Flow Controllers | $10.00 | $10.00*300% | $30.00 |

| Valves | Pumps | Flow Controllers |
Direct Labor | $10.00 | $12.50 | $10.00 |
Direct Material | 16.00 | 20.00 | 22.00 |
Manufacturing Overhead | 30.00 | 37.50 | 30.00 |
Total cost | $56.00 | $70.00 | $62.00 |
However, Wilkerson has very high total manufacturing cost, and its three products have diverse consumption manners of indirect cost. Therefore, the traditional volume-based cost system is inadequate.

Warning! This essay is not original. Get 100% unique essay within 45 seconds!

GET UNIQUE ESSAY

We can write your paper just for 11.99$

i want to copy...

This essay has been submitted by a student and contain not unique content

People also read