Compute amount of overhead cost allocated to each product

Assignment Help Case Study
Reference no: EM131321144

Apple Case Study

In September 2005, Apple Computers unveiled a new version of smaller, sleeker iPods (i.e., digital music players).  The new iPod-Nano holds up to 1,000 songs (4-GB) and works with Macs and PCs. The Nano has a color display and is available at conventional retailers in the United States for $249.

Apple also offers a 20-GB, standard iPod for $299.  Many potential customers have said they were disappointed that the Nano cost only $50 less than the standard iPod which has more than five times the storage capacity.  Nonetheless, the media hype for the Nano has already exceeded expectations.

A new division of Apple will manufacture only the Nano (4-GB) and the Standard (20-GB) iPods.  The critical part of the manufacturing process uses a single machine that produces the color displays on both types of iPods.  Traditionally Apple has made production and marketing decisions based on product profitability.  The planned annual financials for each product are presented in the table below.

Please See Apple Attach 1

Apple wants to reallocate the existing overhead costs to products using recently collected information with respect to key activities and activity cost drivers.  They have the following three activities and other information

Please see Apple Attach 2

Compute the amount of overhead cost allocated to each product and the profitability of each product using the activity based costing approach. What do you learn from the ABC analysis?  How can Apple change in order to improve the profitability of its iPods?

Should Apple analyze the Selling and Admin costs using an ABC system? Why or why not?

For this question, assume that Apple is considering eliminating either the iPod-Nano or the iPod-Standard. Explain two important factors that Apple should consider in a decision to eliminate either one of these products. Your answer should include 1 quantitative fact.

Attachment:- Assignment.zip

Reference no: EM131321144

Questions Cloud

Calculate the voltage in the secondary : A ideal transformer has 50 turns in its primary and 250 turns in its secondary. a) Calculate the voltage in the secondary if 12 V DC is connected to primary b) Calculate the voltage in the secondary if 12V AC is connected to primary
Derive the equation of gate current waveform : A sheet of oxide traps is being charged and discharged via trap-band tunneling. Derive the equation of gate current waveform valid for all times assuming that this is the only time dependence.
Find the force supplied by the rocket engines : a) Find the force supplied by the rocket's engines. b) Find the rocket's speed two seconds after it leaves the ground. c) How high will it be in 5 secs under the same acceleration.
Describe racial incident pertaining to each realm in detail : Franklin hears about people being discriminated against at the workplace and in society but rarely experiences it first hand. Cortez, on the other hand, speaks English poorly and is often subject to derogatory comments from peers and coworkers.
Compute amount of overhead cost allocated to each product : Compute the amount of overhead cost allocated to each product and the profitability of each product using the activity based costing approach. What do you learn from the ABC analysis?  How can Apple change in order to improve the profitability of ..
Distinguish between theory model and hypothesis : Describe how researchers use induction versus deduction to generate research hypotheses.
Find the initial velocity : 1. How far, in terms of wavelength, does a wave travel in 1.5 periods? 2. A ball is tossed upward so that it will be airborne for six seconds. a) Find the initial velocity.
Sketch a case in which the na sheet is moving : Sketch a case in which the Na+ sheet is moving at a constant velocity. Sketch a second case in which the Na+ sheet is moving a constant electric field.
Why must hypotheses be falsifiable : Is it true that most of the findings of behavioral research are just common sense?

Reviews

Write a Review

Case Study Questions & Answers

  What type of purchasing structure does pbc currently utilize

What type of purchasing structure does PBC currently utilize (centeralized, decentralized, hybrid).  Create an organizational (departments or groups not individual employees) showing overall structure and purchasing responsibilities for PBC along ..

  Aviation management financial analysis

Financial analyst to conduct a comparative analysis on two members of this consortium, namely BAE Systems and Rolls Royce. You are required to submit a professionally produced report which should include a detailed analysis

  What factors contributed to success or failure of meeting

How successful was the post- meeting? What factors contributed to the success or failure of this meeting? What kind of project management structure does Horizon use? Is it the right structure? Explain.

  Raising the age for medicare eligibility

Review the capstone 11 policy analysis, and revise as its possible to make it a high quality - Raising the age for Medicare eligibility - Increasing the Medicare age limit in US to 67 old and Medicare cost saving from coverage of group exercise se..

  Create a weebly blog post on american beauty and blue jasmin

create a weebly blog post on American Beauty, Sympathy for Mr. Vengeance, pan's Labyrinth, Momento, What's Eating Gilbert Grape and Blue Jasmin.

  Prepare a report analysing the issues in the case

Prepare a report analysing the issues in the case, and identify logistics management strategies that enable Zara (page 71 in the text) to become so successful. Contrast this with Dell and Myer and a top 500 listed company on the Fortune 500.

  How could fraud have been prevented

May 13, 1988, a Friday incidentally, will be remembered by a major Chicago bank.- How could this fraud have been prevented? - Why is this a difficult fraud to prevent?

  This is all about speed and flexibility its about

case study merging it at daimlerchryslerwhen daimler-benz ag bought chrysler corp. in 1998 the german luxury carmaker

  Identify the specific accounting issue that you believe need

Identify the specific accounting issue that you believe needs to be initially addressed for JE's consideration of goodwill with regards to both Dynamic and ZD.

  Case study developed on the bank of nova scotia

Need a case study developed on the Bank of Nova Scotia. The case study should cover The Banks Corporate governance policy, Diversity and inclusion, based on financial and historic data taken from the Banks 2016 CSR Reports, Financial statements et..

  What weaknesses were found in the security screening methods

What weaknesses were found in the security screening methods used prior to the 9-11 attacks?- What other weaknesses/failures were cited as contributing to the 9-11 attacks?

  Functions that must be served by the primary package

Describe the functions that must be served by the primary package for this product and what is your recommendation for the material(s) that should be used for the primary package?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd