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California State University Chico Operations And Supply Chain Management Assignment Help - Dixon Robotics

Question - Dixon Robotics manufactures three robot models: the A3B4, the BC11, and the C3PO. Dixon
allocates manufacturing overhead to each model based on machine hours. A large portion of the
company's manufacturing overhead costs is incurred by the Maintenance Department. This year,
the department anticipates that it will incur $100,000 in total costs. The following estimates pertain
to the upcoming year:

Estimated Estimated Units Model Machine-Hours of Production
A3B4 20,000 6,250
BC11 15,000 5,000
C3PO 5,000 2,500
Ed Smith, Dixon's cost accountant, suspects that unit costs are being distorted by using a single
activity base to allocate Maintenance Department costs to products. Thus, he is considering the
implementation of activity-bas ...Read More

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