Wilkerson Co Case SolutionPosted by John Smith on May 19th, 2018 The leader of Wilkerson, confronted with decreasing profits, is battling to know why the organization is experiencing severe cost competition on a single products while in a position to raise prices without competitive response on another products. The controller proposes that the organization develop a task-based cost model to know better the various demands that every products makes around the organization's indirect and support assets. A rewritten form of an early on case. Excel CalculationsOperating Results Product Profitability Analysis Product Data Monthy Production and Operating Statistics Activity Based Costing Acivity Cost pool and Measures Acivity Cost pool and Cost Driver Rate Unit Cost Of Product Line Operating Results Product wise Operating results Questions CoveredWhat is the competitive situation faced by Wilkerson? Given some of the apparent problems with Wilkerson's cost system, should executives abandon overhead assignment to producer entirely by adopting a contribution margin approach in which manufacturing overhead is treated as a period expense? Why or why not? How does Wilkerson's existing cost system operate? Develop a diagram to show how costs flow from factory expense accounts to products. Develop and diagram an activity -based cost model using the information in the case. Provide your best estimates about the cost and profitability of Wilkerson's three product lines. What difference does your cost assignment have on reported product costs and profitability? What causes any shifts in cost and profitability? Like it? Share it!More by this author |