The following data pertain to Montrose Company's three products: Unit sales per month Selling price per unit Variable costs per unit Unit contribution margin Batches Setups Direct fixed costs Advertising Supervision Common fixed costs Inspecting products Materials handling Customer service Plant depreciation General administration Inspecting products Materials handling Customer service M 9,000 Plant depreciation General administration $6.00 3.00 $3.00 5 6 $3,000 5,000 $10,000 4,000 5,000 6,000 8,000 N 14,000 $11.25. 9.00 $ 2.25 10 3 When Montrose converted to ABC to help assess relevant decision making, it discovered the followin 20% of the inspection activity was unused. The inspections used were based on the number of batches produced. 8,000 $7.50 7.00 $0.50 5 1 $2,000 $1,000 5,000 5,000 10% of the materials handling activity was unused. The materials handling activity used was based on the number of production runs. Facility-level cost 50% of the customer service activity was unused. The usage was given as follows: M 1,000, N 1000, O 500

The following data pertain to Montrose Company's three products: Unit sales per month Selling price per unit Variable costs per unit Unit contribution margin Batches Setups Direct fixed costs Advertising Supervision Common fixed costs Inspecting products Materials handling Customer service Plant depreciation General administration Inspecting products Materials handling Customer service M 9,000 Plant depreciation General administration $6.00 3.00 $3.00 5 6 $3,000 5,000 $10,000 4,000 5,000 6,000 8,000 N 14,000 $11.25. 9.00 $ 2.25 10 3 When Montrose converted to ABC to help assess relevant decision making, it discovered the followin 20% of the inspection activity was unused. The inspections used were based on the number of batches produced. 8,000 $7.50 7.00 $0.50 5 1 $2,000 $1,000 5,000 5,000 10% of the materials handling activity was unused. The materials handling activity used was based on the number of production runs. Facility-level cost 50% of the customer service activity was unused. The usage was given as follows: M 1,000, N 1000, O 500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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