Driver and guard wages 40% 45% 10% 5% 100%

Vehicle operating expense 75% 5% 0% 20% 100%

Vehicle depreciation 70% 10% 0% 20% 100%
Customer representative salariesand
expenses
0% 0% 85% 15% 100%
Office expenses 0% 25% 35% 40% 100%
Administrative expenses 0% 5% 55% 40% 100%
Driver and guard wages 336,000 378,000 84,000 42,000 840,000
Vehicle operating expense 202,500 13,500 - 54,000 270,000
Vehicle depreciation 105,000 15,000 - 30,000 150,000
Customer representative salariesand
expenses
- - 153,000 27,000 180,000
Office expenses - 10,000 14,000 16,000 40,000
Administrative expenses - 17,000 187,000 136,000 340,000
643,500 433,500 438,000 305,000 1,820,000
Driver and guard wages $ 840,000
Vehicle operating expense 270,000
Vehicle depreciation 150,000
Customer representative salaries and expenses 180,000
Office expenses 40,000
Administrative expenses 340,000

Total cost $ 1,820,000
Activity Cost Pool Estimated
Overhead
Cost Expected Activity
Caring for lawn 77,400 180,000 square feet of lawn
Caring for garden bedslow maintenance 30,000 24,000 square feet of low-maintenance beds
Caring for garden bedshigh maintenance 57,600 18,000 square feet of high-maintenance beds
Travel to jobs 4,200 15,000 miles
Customer billing and service 8,700 30 customers
Cost Expected Activity
Caring for lawn 0.43
Caring for garden bedslow maintenance 1.25
Caring for garden bedshigh maintenance 3.20
Travel to jobs 0.28
Customer billing and service 290.00
square feet of low-maintenance beds
square feet of high-maintenance beds
Activity Cost Pool Activity Rate
Supporting direct labor 18 per direct labor-hour
Order processing 192 per order
Custom designing 261 per custom design
Customer service 426 per customer
Standard Custom
Model Design
Number of gliders 10 2
Number of orders 1 2
Number of custom designs 0 2
Direct labor-hours per glider 28.5 32
Selling price per glider 1,650 2,300
Direct materials cost per glider 462 576
Order processing
Custom designing
Customer service
Standard Custom
Model Design
M 4620 1152
L 5415 1216
Supporting direct labor 5130 1152
Order processing 192 384
Custom designing 0 522
Customer service 426
15783 4426
16500 4600
717 174 891
Selling price per unit 127
Direct materials per unit 64.8
Direct labor per unit 18.2
Direct labor-hours per unit 1.4 DLHs
Estimated annual production and sales 25,000 units
35000

Estimated total manufacturing overhead $2,200,000
Estimated total direct labor-hours 110,000 DLHs
20
3175000 6675000
1620000 2075000 4800000
455000 700000 1500000
400000 375000
58.4% 2775000 6300000
16.4%
25.2%
Batch setups (setups)
Product sustaining (number of products)
Other
M
L
89
51
13
1 DLHs
75,000 units

3825000 5445000
975000 1430000
775000 2200000
9075000
Estimated
Expected Activity
Activities and Activity Measures Overhead Cost Xactive PathbreakerTotal
Supporting direct labor (direct labor-hours) $ 797,500 35,000 75,000 110,000
Batch setups (setups) 680,000 250 150 400
Product sustaining (number of products) 650,000 1 1 2
Other 72,500 NA NA NA
Supporting direct labor (direct labor-hours) 253750 543750 797500
Batch setups (setups) 425000 255000 680000
Product sustaining (number of products) 325000 325000 650000
Other 0
M 2075000 4800000 6875000
L 0
3078750 5923750 9002500
96250 751250 847500
9,075,000
60.7%
15.5%
23.8%
Activity Cost Pool (and activity measure) Overhead Cost Rims Posts
Machine setups (number of setups) 17,010 90 72
Special processing (machine-hours) 171,000 3,800 -
General factory (direct labor-hours) 470,400 21,000 12,600
Machine setups (number of setups) 17,010 9,450 7,560
Special processing (machine-hours) 171,000 171,000 -
General factory (direct labor-hours) 470,400 294,000 176,400
total 474,450 183,960
DM 1,140,000 714,000
DL 336,000 201,600
1,950,450 1,099,560
65.02 26.18
Total rate
162 105
3,800 45
33,600 14
DLH Production
Rims 0.7 30,000 units
Posts 0.3 42,000 units
M
Rims 21000 336000 1140000
Posts 12600 201600 714000