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BUS 630 Week 2 Assignment CASE 3A AUERBACH ENTERPRISES

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BUS 630 Week 2 Assignment CASE 3A  AUERBACH ENTERPRISES

Ashford University
Managerial Accounting
BUS 630

BUS 630 Week 2 Assignment
 
MaxiFlow requires direct materials costs which total $135 per unit, while Alaska’s direct materials requirements total $110 per unit. Direct labor costs per unit are $75 for MaxiFlow and $95 for Alaska.
Auerbach Enterprises uses machine hours as the cost driver to assign overhead costs to the air conditioners. The company has used a company-wide predetermined overhead rate in past years, but the new controller, Bennie Leon, is considering the use of departmental overhead rates beginning with the next year.
The following planning information is available for the next year for each the four manufacturing departments within the company:
Overhead Machine

 

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