Wilkerson ABC

 Wilkerson Company ABC cost system Exhibit 1.a Machine expenses Setup Labor Receiving and production control "ngineering Pachaging and Shipping

336,000.00 40,000.00 !0,000.00 00,000.00 '0,000.00 $ 80!000.00 *alves

Production units Machine hours Production runs (u)ber o shp)ents #ours o engineering engineeri ng %or&

Cost Pool Machining Setup Labor Receiving "ngineering Pac&aging

$

Pu)ps -,'00 3,-'0 0 0 '0

,'00 6,'0 '0 -0 3-'

+lo% ontrollers ontroller s "#"A 4,000 4,000 ,00 ,00 00 60 0 300 6' ,'0

C#%" A%%#%&A"ED W&"' C#%" P## Machining Setup Labor Receiving "ngineering Pac&aging alculations ost pool 1 ost 2river  verhead per unit Price per unit 5 ost 2river  cost assosiated %ith cost pool

/nit *alves Pu)ps +lo% ontrollers ontroller s "#"A $ 30.00 $ ,'00.00 $ !-,'00.00 $ 36,000.00 $ 336,000.00 $ '0.00 $ ,'00.00 $ ,'00.00 $ ',000.00 $ 40,000.00 $ ,'.00 $ ,'0.00 $ '6,'0.00 $ ,'00.00 $ !0,000.00 $ !0.00 $ 0,000.00 $ 30,000.00 $ '0,000.00 $ 00,000.00 $ '00.00 $ ',000.00 $ 3',000.00 $ 0,000.00 $ '0,000.00 $ 80!000.00

Cost Driver Machine hours Production runs Production runs #ours o engineering engineeri ng %or& (u)ber o ship)ents

 Exhibit (.a Selling Price 2irect Materials 2irect Labor )an*+act*rin, #verheaMachine expenses Setup Labor Receiving and production control "ngineering Pachaging and Shipping 7ross Margin  7ross Margin 8

2irect labor cost 2irect )aterial cost Manuacturing overhead Standard unit costs  9arget selling price Planned gross )argin 8

Act*al sellin, price Act*al ,ross mar,in 3 alculations Selling Price : 2M:2L:M 7ross Margin 7ross Margin 1 Selling Price  7ross Margin 8

*alves Pu)ps +lo% ontrollers $ !6.00 $ !-.00 $ 0'.00 6.00 0.00 .00 0.00 .'0 0.00 '.00 '.00 0.33 .00 .'0 4.'0 .6.40 0.6.!0 $ /.8 $ (8.80 $ 2.(3 .103

.00 6.' !.3 .'0 -.'0 10.8 4/.883

*alves Pu)ps +lo% ontrollers 0.00 .'0 0.00 6.00 0.00 .00 0.2.15

'.-0 68.(0

!3.3! 116.8

!6.' 3'8

0-.6 3'8

'.3! 3'8

8.00 2.(3

85.00 .103

106.00 4/.883