Auebach Enterprises Essay Example for Free

Auebach Enterprises screen These be non presented in erudite parole, and atomic number 18 simply the solutions. bookman papers argon expected to be written in scholarly discussion following(a)(a) APA change guidelines incorporating solutions and supported with scholarly research.Auerbach Enterprises manufactures zephyr conditi unmatchablers for automobiles and trucks manufacture throughout normality America. The company designs its products with flexibleness to accommodate numerous makes and models of automobiles and trucks. The companys two important products are MaxiFlow and Alaska. MaxiFlow personas a few Gordian fabricated separate, alone these have been prove easy to lay out and test. On the otherwise hand, Alaska substance abuses many stock move but has a tortuous concourse and testing process. MaxiFlow requires direct materials cost which occur $ one hundred thirty-five per unit, while Alaskas direct materials requirements total $110 per unit. broadcast labor be per unit are $75 for MaxiFlow and $95 for Alaska. Auerbach Enterprises uses machine hours as the cost number one wood to assign operating expense cost to the air conditioners. The company has utilize a company-wide determine disk viewgraph rank in late(prenominal) years, but the youthful controller, Bennie Leon, is considering the use of discussion sectional overhead judge ancestry with the future(a) year.The following planning nurture is available for the next year for each the four manufacturing departments in spite of appearance the company overhead Machine cost Hours Radiator parts duplicity.. $ 80,000 10,000 Radiator convocation, weld, and test. 100,000 20,000 Compressor parts imposition. 120,000 5,000 Compressor assembly and test.. 180,000 45,000 entireness $480,000 80,000Normally, the air conditioners are produced in clasp sizes of 20 at a time. A production upsurge of 20 units requires the following number of hours in each departmen tMaxiFlow Alaska Radiator parts fabrication.. 28 16 Radiator assembly, weld, and test. 30 74 Compressor parts fabrication 32 8 Compressor assembly and test 26 66 fall 116 164Required 1. code the departmental overhead rates development machine hours as the cost driver. 2. compute a company-wide overhead rate development machine hours as the cost driver. 3. code the overhead cost per batch of MaxiFlow and Alaska take for granted (a) The company-wide rate.(b) The departmental rates. 4. deem the total costs per unit of MaxiFlow and Alaska anticipate (a) The company-wide rate.(b) The departmental rates. 5. Is one product touch more than the other by use of departmental rates rather than a company-wide rate? wherefore or why not?Auebach Enterprises. (2016, Apr 21).