Case Study: Auerbach Enterprises
Required: 1. Compute 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 why not?
In this case, you are provided the overhead cost data for the Auerbach Enterprises. Management needs advice in determining how to allocate these costs utilizing a job order costing system either department-wide or company-wide. Address Questions 1 through 5 located at the end of the case. Based on the case questions, you are required to provide a three to five double-spaced written report addressing management's concerns and providing recommendations. The written report should be properly formatted according to APA guidelines and demonstrate research and critical thinking skills. Conclusions and recommendations should be supported by at least two scholarly sources from the Ashford Library or other external sources, excluding the textbook.
For Questions 1 through 4, you will need to complete several calculations. Be sure to label and clearly identify your work to demonstrate your understanding of the concept even if you arrive at the incorrect answer. The calculations should be included as part of your analysis and written recommendations required for submission.
For Question 5, fully address management's concerns as part of your written analysis and recommendation using the new or the previous calculations to support your recommendation/explanation. The written analysis should be supported by at least two scholarly sources, excluding the textbook.
Week 2 Written Assignment should:
• Demonstrate graduate level work including appropriate research and critical thinking skills.
• Be presented as a written analysis (not a question/answer format).
• Incorporate case questions into the overall analysis.
• Follow APA formatting guidelines including title page, reference page and in-text citations.
• Consists of three to five double-spaced pages of content.
Provide at least two scholarly sources, excluding the textbookInsert prompt
Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.
Information related to above question is enclosed below:
Attachment:- Week2AssignmentCASE3A.rar