Student Number 284739 Student Name Instructions: ACT202 ASSIGNMENT DATA - SEMESTER 1 2017 Enter your student number in the cell above (shaded Yellow) When you enter your student number you will generate the relevant data and figures necessary to complete your assignment. These data and figures will be unique to your student number. Do NOT use figures generated for other student numbers. You cannot use this workbook, or link to this workbook to complete your assignment. You will need to print this worksheet and/or transcribe the data and figures manually. HINT!! If you print this worksheet to PDF format, you can "copy & paste" or "export" the details from the PDF document to an excel worksheet.[Select the right-click dropdown menu options, after selecting the text in the PDF document.] SCROLL DOWN TO VIEW YOUR DATA MISS INUL DEWI PRAMITA SARI (WFD) Wurst Company Case and Data Schedules Wurst Company Case Background Wurst Company manufactures a wide range of smallgoods (processed meats). Twenty years ago Wurst Company had only three product lines (Mettwurst, Bologna sausage, and Saveloys). The company produced large volumes of each product, using very simple machinery and a lot of hard work. The company still makes and sells a lot of the original three product lines, but now also produces a wide range of low-volume speciality lines (Clobassy, Csabai, and Chorizo, amongst many others). The low-volume speciality lines are complex to produce and their short production runs involve a lot of extra machinery setups and material handling. But the current figures indicate that these speciality lines have very good profit margins. The company has undergone some dramatic changes within the business over the past 20 years. The factory had seen the introduction of computer-controlled mincing and mixing machines and smoking ovens that replaced a lot of the direct labour operations, and an increased emphasis on quality and delivery performance. In fact, right across the business, more and more effort had been placed on keeping the customer happy. Despite all this progress, the company seems to be struggling. Profits are declining, and for the company to survive senior management has indicated to staff that they must be more productive. Senior management also indicated that the company must focus on increasing sales, particularly in the range of high-margin specialty products. The company's management accountant had become concerned about the conventional product costing system at Wurst Company. The manufacturing people were also sure that the costing system was distorting product costs. Schedule 1 Resource Cost Categories and Resource Drivers Cost category Cost Resource driver Wages $3,216,000 Number of employees Building costs $335,000 Floor space Depreciation $670,000 Machine hours Consumables $33,500 Orders placed by centre Energy $140,700 Kilowatt hours used Other $33,500 Number of employees Total $4,428,700 Schedule 2 Resource drivers consumed by activity centres Wages Building costs Depreciation Consumables Energy Other (employees) (m2) (machine hours) (orders) (kilowatt hours) (employees) 2 200 0 10 0 2 6 500 0 10 0 6 1 500 0 0 0 1 16 1,000 4000 100 130000 16 16 1,000 5000 70 200000 16 13 1,000 1000 100 130000 13 6 500 0 30 0 6 7 300 0 20 0 7 67 5,000 10000 340 460000 67 Schedule 3 Activities and resource drivers used - Mincing labour time floor space 10% 5% 10% 5% 40% 70% 20% 5% 10% 5% 10% 10% 100% 100% Clean mincer Activity Set up mincer Load mincer Operate mincer Unload mincer Move to mixing room Total * All Calculations to 4 decimal places In this Activity Centre, the only activity that makes significant use of machinery (and therefore depreciation, consumables and energy) is Operate mincer Various consumables used in this Activity Centre are almost all used by the Operate mincer personnel, who order these supplies as and when needed. * All Calculations to 4 decimal places Cost categories (resource drivers) - All Wages Costs can be considered indirect costs for the purposes of this case. - The current conventional approach to allocation of overheads is to use a plantwide rate. - The current plantwide rate in use can be approximated by using the estimated annual number of units produced as the level of activity. Total quantity of resource drivers across all activity centres Activity centres New Product Development Sales and dispatch Inspecting Mincing Mixing Smoking and Packing Administration Corporate management Schedule 4 Activity cost Activity driver of activity driver $361,571 Assigned directly to products $127,632 No. of invoices 3,400 invoices $72,191 No. of purchase orders 1,700 purchase orders $127,632 No. of production schedules 670 production schedules $8,200 No. of Reports 67 Reports $201,991 No. of sales orders 2,680 sales orders $123,494 No. of dispatches 1,700 dispatches $111,385 Assigned directly to new products lines $31,300 No. of batches 670 batches $8,200 No. of batches 670 batches $8,200 No. of batches 670 batches ?? No. of batches 670 batches ?? No. of batches 670 batches ?? No. of litres 134,000 litres ?? No. of batches 670 batches ?? No. of batches 670 batches ?? No. of batches 670 batches $42,150 No. of batches 670 batches $80,950 No. of batches 670 batches $161,900 No. of batches 670 batches $831,271 No. of litres 134,000 litres $84,300 No. of batches 670 batches $45,500 No. of litres 134,000 litres $174,375 No. of products 536,000 products $66,400 No. of trays 10,720 trays $34,875 No. of trays 10,720 trays $465,366 No. of trays 10,720 trays $34,875 No. of trays 10,720 trays $17,900 No. of trays 10,720 trays $8,200 No. of trays 10,720 trays $38,225 No. of trays 10,180 Finished trays “??” indicates that these figures must be calculated. Setup smokehouse Move to smokehouse Smoke products Unload smokehouse Inspect finished products Disposal of substandard product Move to truck * All Calculations to 4 decimal places Load mixers Operate mixers Clean mixers Move mixture to smokehouse Pack into skins Unload mincer Clean mincer Move to mixing room Set up scales Weigh ingredients Disposal of substandard meat Move to mincing room Set up mincer Load mincer Operate mincer Reports to Health Dept Process sales order Dispatch sales order New Product Development Inspect meat Corporate management Process receivables Process payables Production planning List of activities Activity Schedule 5 of activity driver $72,854 Assigned directly to products 300 invoices 100 purchase orders 60 production schedules 6 Reports 340 sales orders 300 dispatches $0 Assigned directly to new products lines 60 batches 60 batches 60 batches 60 batches 60 batches 27,000 litres 60 batches 60 batches 60 batches 60 batches 60 batches 60 batches 27,000 litres 60 batches 27,000 litres 107,200 products 1,080 trays 1,080 trays 1,080 trays 1,080 trays - trays - trays 1,080 Finished trays $6 per litre $14 per unit of product 2,000 108,000 Smoke products Unload smokehouse * All Calculations to 4 decimal places Inspect finished products Disposal of substandard product Current Market Selling Price Batch size Move to truck Direct Materials Annual Volume Set up mincer Load mincer Operate mincer Unload mincer Clean mincer Dispatch sales order New Product Development Inspect meat Disposal of substandard meat Move to mincing room Clean mixers Move mixture to smokehouse Pack into skins Setup smokehouse Move to smokehouse Move to mixing room Set up scales Weigh ingredients Load mixers Operate mixers Process receivables Process payables Production planning Reports to Health Dept Process sales order Activities consumed Corporate management Mettwurst Schedule 6 of activity driver $8,769 Assigned directly to products 100 invoices 100 purchase orders 30 production schedules 4 Reports 100 sales orders 100 dispatches $36,757 Assigned directly to new products lines 40 batches 40 batches 40 batches 40 batches 40 batches 6,500 litres 40 batches 40 batches 40 batches 40 batches 40 batches 40 batches 6,500 litres 40 batches 6,500 litres 13,400 products 270 trays 270 trays 270 trays 270 trays 270 trays 270 trays 260 Finished trays $8 per litre $18 per unit of product 400 13,000 New Product Development Inspect meat Disposal of substandard meat Corporate management Process receivables Process payables Production planning Reports to Health Dept Process sales order Dispatch sales order Activities consumed Csabai Clean mincer Move to mixing room Set up scales Weigh ingredients Load mixers Move to mincing room Set up mincer Load mincer Operate mincer Unload mincer * All Calculations to 4 decimal places Direct Materials Current Market Selling Price Batch size Annual Volume Move to smokehouse Smoke products Unload smokehouse Inspect finished products Operate mixers Clean mixers Move mixture to smokehouse Pack into skins Setup smokehouse Disposal of substandard product Move to truck