These are not provided in scholarly discussion, but are simply the alternatives. Student papers are expected to get written in scholarly discussion following APA formatting suggestions incorporating alternatives and supported with educational research. CIRCUMSTANCE 3A – AUERBACH COMPANIES Auerbach Businesses manufactures air conditioning units for autos and vehicles manufactured during North America. The company designs its products with flexibility to accommodate many makes and models of automobiles and trucks.
The company’s two main products are MaxiFlow and Alaska. MaxiFlow runs on the few sophisticated fabricated parts, but these have been found simple to assemble and test. However, Alaska uses many common parts yet has a sophisticated assembly and testing process. MaxiFlow needs 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 Ak.
Auerbach Enterprises uses equipment hours since the cost rider to assign overhead costs for the air conditioners. The organization has used a company-wide established overhead price in earlier years, however the new control, Bennie Leon, is with the use of department overhead prices beginning with another year. The following planning data is available for year for each the several manufacturing departments within the organization: Normally, the environment conditioners have been in batch sizes of 20 at a time. A production set of 20 units needs the following range of hours in each office: