Florida International University Operations And Supply Chain Management Assignment Help - Segmented Income

Question - Blue Ridge Manufacturing
ABC Analysis of Indirect Costs
Activity Measure Used By:
Activity Cost Pool Amount Activity Measure Designer Children's Sports
Designer Pay $488,260 Hours worked 10,105 3,857 14,760
Supervisory pay 163,176 Hours worked 76,411 82,606 47,498
Samples 218,711 Number of items 2,223 2,224 1,229
Setup costs 76,220 Number of setups 15,806 15,807 11,290
Travel for design 47,266 Travel hours 3,985 2,213 6,476
Scheduling 67,142 Number of orders 246 1,870 11,990
Customer service 13,369 Number of calls 118 882 13,580
Design office costs 7,925 Square feet occupied 900 811 1,004
Supervisory, setup, and
schedulers office costs 66,665 Square feet occupied 1,800 1,622 2,008
Inspection 13,50 ...Read More 1 Number of inspections 1,897 1,297 7,113
Purchasing 175,356 Number of unique items 1,870 246 11,990
Materials handling 71,641 Number of material moves 118 882 13,580
Total Costs $1,409,232




Blue Ridge Manufacturing
Segmented Income Statement
Designer Children's Sports Total
Sales $3,464,915 $3,246,587 $1,739,510 $8,451,012
Less:
Variable product costs 1,829,464 1,977,798 1,137,225 4,944,487
Commissions 236,805 256,006 147,202 640,013

Contribution Margin $1,398,646 $1,012,783 $455,083 $2,866,512
Less:
Indirect expenses 687,601 497,903 223,728 1,409,232
Income $711,045 $514,880 $231,355 $1,457,280






1. Use an excel spreasheet to determine the amount of indirects cost that coud be attributable to each
product line
using activity-based costing (ABC. Data is in the ABC analysis tab of the file ...Read Less

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