Sparks Company Produces and Distributes Two Types of Garden Sculptures

question 77

Essay

Sparks Company produces and distributes two types of garden sculptures, Plain and Fancy. Budgeted cost and activity for each of its three activity cost pools are shown below. The company plans to produce and sell 64,000 plain units and 49,150 fancy units.

$$\begin{array} { | l | l | l | l | } \hline & &{ \text { Budgeted Activity } } \\\hline \text { Activity Cost Pool } & \text { Budgeted Cost } & \text { Plain } & \text { Fancy } \\\hline \text { Packaging } & \$ 360,000 & 70,000 \text { finished units } & 130,000 \text { finished units } \\\hline \text { Material handling } & \$ 262,500 & 140,000 \text { total parts } & 210,000 \text { total parts } \\\hline \text { Production setups } & \$ 125,000 & 5 \text { total setups } & 20 \text { total setups } \\\hline\end{array}$$
a. Compute the approximate overhead cost per unit of Plain under activity-based costing.
b. Compute the approximate overhead cost per unit of Fancy under activity-based costing.

Recognize the significance of strategic decisions in procurement, sourcing, and supply chain structure.

Identify the different types of inventory and their purposes within the supply chain.

Understand the role and types of facilities within the supply chain.

Grasp the concept of strategic fit between customer needs and supply chain responsiveness and efficiency.

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Definitions:

Genealogy of Power

A concept, heavily influenced by Michel Foucault, exploring the historical emergence and development of power structures within societies.

Knowledge

Information, understanding, and skills acquired through experience or education; the theoretical or practical understanding of a subject.

Semiotics

The study of signs and symbols, and their use or interpretation in communication processes.

Social Life

The interactions and relationships individuals have with each other within a society, forming the basis of social structure and culture.