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university of california Operations And Supply Chain Management Assignment Help - Sandstorm Manufacturing Inc.

Question - Sandstorm Manufacturing Inc. makes two types of industrial component parts%u2014the LE100 and
the UL600. It annually produces 120,000 units of LE100 and 25,000 units of UL600. The
company%u2019s conventional cost system allocates manufacturing overhead to products using a
plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating
to the company%u2019s two product lines is shown below:
LE100 UL600 Total
Direct materials $ 720,000 $ 357,000 $ 1,077,000
Direct labor $ 240,000 $ 100,000 $ 340,000

The company is considering implementing an activity-based costing system that distributes all of its
manufacturing overhead to four activities as shown below:
Activity Cost Pool
(and Activit ...Read More

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