MGAB03H3 Lecture Notes - Lecture 7: Product Design, Cost Driver, Steam Whistle Brewing
8 Oct 2015
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Identifying costs using the abc cost hierarchies steam whistle brewing. Following are the cma answers to this question. However, one could argue that some of the unit-level costs could instead be categorized as batch-level: facility-sustainingcosts: manufacturing facility, product-sustaining costs: product development, batch-level costs: production setup, unit-level costs: Power (assuming most power is to cool beer and run machines, not for overhead) 7. 25 traditional versus abc costing - kalder products: total engineering change cost. 1. 5 mhr * /mhr: total engineering change cost. 2 change orders * : comparison of costs allocated under the two systems: Cross-subsidization means that one product is allocated more overhead cost relative to its use of overhead resources and, therefore, other products" overhead cost is less than their use of resources. 7. 29 abc costing, abm - palmer company: manufacturing cost per unit: 100 units x 1. 25 machine hours x . 00. 100 units x 1. 5 direct labour hours x . 00. Total full cost per unit: cost savings required:
