Auebach Enterprises Essay

These are non presented in scholarly tidings, notwithstanding are simply the solutions. Student paper are expected to be written in scholarly discussion following APA formatting guidelines incorporating solutions and supported with scholarly research.CASE 3A AUERBACH ENTERPRISESAuerbach Enterprises manufactures air conditi unrivaledrs for automobiles and trucks construct throughout North America. The beau monde designs its products with flexibility to accommodate many makes and models of automobiles and trucks. The companys two main products are MaxiFlow and Alaska. MaxiFlow uses a few analyzable fabricated parts, but these have been found easy to assemble and examen. On the other hand, Alaska uses many standard parts but has a compound assembly and testing process. MaxiFlow requires direct materials be which total $135 per unit, art object Alaskas direct materials requirements total $110 per unit. Direct labor prices per unit are $75 for MaxiFlow and $95 for Alaska. Aue rbach Enterprises uses machine hours as the monetary value driver to assign overhead costs to the air conditioners. The company has utilize a company-wide predetermined overhead rate in past social classs, but the new controller, Bennie Leon, is considering the use of departmental overhead rates reference with the next year.The following planning information is available for the next year for each the four manufacturing departments within the companyOverhead Machinecost HoursRadiator parts fabrication.. $ 80,000 10,000Radiator assembly, weld, and test. 100,000 20,000Compressor parts fabrication. 120,000 5,000Compressor assembly and test.. 180,000 45,000Total $480,000 80,000Normally, the air conditioners are produced in batch sizes of 20 at a time. A production batch of 20 units requires the following enumerate of hours in each departmentMaxiFlow AlaskaRadiator parts fabrication.. 28 16Radiator assembly, weld, and test. 30 74Compressor parts fabrication 32 8Compressor assembly an d test 26 66Total 116 164Required1. guess the departmental overhead rates using machine hours as the cost driver. 2. Compute a company-wide overhead rate using machine hours as the cost driver. 3. Compute the overhead costs per batch of MaxiFlow and Alaska assuming (a) The company-wide rate.(b) The departmental rates.4. Compute the total costs per unit of MaxiFlow and Alaska assuming (a) The company-wide rate.(b) The departmental rates.5. Is one product affected more than the other by use of departmental rates rather than a company-wide rate? Why or wherefore not?