1. Calculate the total time for all primary activities. fill in the blank hours
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Simplifying the ABC System: DBC
Electan Company produces two types of printers. The company uses ABC, and all activity drivers are duration drivers. Electan Company is considering using DBC and has gathered the following data to help with its decision.
A. Activities with duration drivers:
| Activities | |||||
| Products | Changeover | Assembly | Testing | Rework | Total Hours |
| Printer A | 1,000 | 12,000 | 8,000 | 8,000 | 25,000 |
| Printer B | 4,000 | 8,000 | 12,000 | 12,000 | 25,000 |
| Total hours | 5,000 | 20,000 | 20,000 | 20,000 | 50,000 |
B. Activities with consumption ratios and costs:
| Activities | |||||
| Products | Changeover | Assembly | Testing | Rework | Cost Assignment |
| Printer A | 0.20 | 0.60 | 0.40 | 0.80 | $155,000 |
| Printer B | 0.80 | 0.40 | 0.60 | 0.20 | $155,000 |
| Activity costs | $75,000 | $120,000 | $60,000 | $55,000 | $310,000 |
C. Products with cycle time and practical capacity:
| Products | Cycle Time | Practical Capacity |
| Printer A | 2.5 hours | 10,000 units |
| Printer B | 1.25 hours | 20,000 units |
Required:
1. Calculate the total time for all primary activities.
fill in the blank hours
2. Calculate the overhead rate that DBC uses to assign costs.
| $fill in the blank 2 per labor hour |
3. Use the overhead rate calculated in Requirement 2 to calculate the overhead cost per unit for each product.
| Printer A | $fill in the blank 3 |
| Printer B | $fill in the blank 4 |
Calculate the total overhead assigned to each product.
| Printer A | $fill in the blank 5 |
| Printer B | $fill in the blank 6 |
4. What if the units actually produced were 10,000 for Printer A and 18,000 for Printer B. Using DBC, calculate the cost of unused capacity.
$fill in the blank 7
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