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Auerbach Enterprises Complete: Case 3A (Auerbach Enterprises) In this case, you are provided the overhead cost data for the Auerbach Enterprises. Management needs advice in determining how to allocate...

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Auerbach Enterprises

Complete: Case 3A (Auerbach Enterprises)Preview the document
In this case, you are provided the overhead cost data for the Auerbach Enterprises. Management needs advice in determining how to allocate these costs utilizing a job order costing system either department-wide or company-wide. Address Questions 1 through 5 located at the end of the case. Based on the case questions, you are required to provide a three to five double-spaced written report addressing management’s concerns and providing recommendations. The written report should be properly formatted according to APA guidelines and demonstrate research and critical thinking skills. Conclusions and recommendations should be supported by at least two scholarly sources from the Ashford Library or other external sources, excluding the textbook.

For Questions 1 through 4, you will need to complete several calculations. Be sure to label and clearly identify your work to demonstrate your understanding of the concept even if you arrive at the incorrect answer. The calculations should be included as part of your analysis and written recommendations required for submission.

For Question 5, fully address management’s concerns as part of your written analysis and recommendation using the new or the previous calculations to support your recommendation/explanation. The written analysis should be supported by at least two scholarly sources, excluding the textbook.

Week 2 Written Assignment should:

  • Demonstrate graduate level work including appropriate research and critical thinking skills.
  • Be presented as a written analysis (not a question/answer format).
  • Incorporate case questions into the overall analysis.
  • Follow APA formatting guidelines including title page, reference page and in-text citations.
  • Consists of three to five double-spaced pages of content.
  • Provide at least two scholarly sources, excluding the textbook.
Answered Same Day Apr 01, 2021

Solution

Ashish answered on Apr 02 2021
157 Votes
Running Head: Case analysis (Aue
ach Enterprises)
Case analysis (Aue
ach Enterprises)
Student name:
Student ID:
1st April 2019
Solution-1
The department overhead rate with the uses of machine hours as the cost driver as follows:
Departmental Overhead Rates  = Overhead Costs /Machine hours         
    A
    B
    C
    =
    D=B/C
    
    Overhead Costs
    Machine hours
    =
    Departmental Overhead Rates
    Radiator Parts (Fa
ication)
    $80,000
    10000
    =
    8
    Radiator Assembly (Weld and Test)
    $100,000
    20000
    =
    5
    Compressor Parts (Fa
ication)
    $120,000
    5000
    =
    24
    Compressor Assembly (Test)
    $180,000
    45000
    =
    4
 Solution-2
The company wide overhead rate with uses of machine hours as the cost driver as follows: 
Company-wide overhead rate = Total Cost Hours / Total Machine Hours      
Company-wide overhead rate = $480,000 / 80000
Company-wide overhead rate = 6
Solution-3
a. Calculation of company-wide rate are as follows:
    A
    B
    C
    D=B*C
    E
    F
    G=E*F
    Â 
    Maxi Flow
    Company-wide overhead rate
    Company-wide rate (Maxi Flow )
    Alaska
    Company-wide overhead rate
    Company-wide rate (Maxi Flow )
    Radiator Parts (Fa
ication)
    28 hours
    6
    168
    16 hours
    6
    96
    Radiator Assembly (Weld and Test)
    30...
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