1) | predetermined overhead rate | ||||||||
total estimated manufacturing overhead/total estimated direct labor dollars | |||||||||
511330/163200 | |||||||||
3.13315 | |||||||||
product margin using traditional appraoch | |||||||||
B300 | T500 | total | |||||||
sales | 1208000 | 508000 | 1716000 | ||||||
less:Expenses | |||||||||
direct materials | 400000 | 162100 | 562100 | ||||||
direct labor | 120700 | 42500 | 163200 | ||||||
manufacturing OH applied @3.13 | 378171 | 133159 | 511330 | ||||||
total manufacturing cost | 898871 | 337759 | 1236630 | ||||||
product margin | 309129 | 170241 | 479370 | answer | |||||
2) | ABC activity based | ||||||||
Activity rates | |||||||||
(a) | (b) | c=a/b | |||||||
Activity cost pools | total cost | total | Activity rate | ||||||
activity | |||||||||
machining | 206,010 | 152,600 | 1.35 | per machine hour | |||||
Setups | 143,220 | 341 | 420 | per setup hour | |||||
product sustaining | 102,000 | 2 | 51000 | per product | |||||
product margin under ABC accounting | |||||||||
B300 | T500 | total | |||||||
sales | 1208000 | 508000 | 1716000 | ||||||
less:Expenses | |||||||||
direct materials | 400000 | 162100 | 562100 | ||||||
direct labor | 120700 | 42500 | 163200 | ||||||
Advertising expense | 51,000 | 103,000 | 154000 | ||||||
manufacturing overhead assigned | |||||||||
machining | 121635 | 84375 | 206010 | ||||||
Setups | 29820 | 113400 | 143220 | ||||||
product sustaining | 51000 | 51000 | 102000 | ||||||
total cost | 774,155 | 556,375 | 1330530 | ||||||
product margin | 433845 | -48375 | 385470 | ||||||
Traditional cost system | B 300 | T -500 | |||||||
3) | % of total | % of total | Total | ||||||
amount | amount | amount | amount | amount | |||||
Traditional cost system | |||||||||
Direct materials | 400000 | 71.2% | 162100 | 28.8% | 562100 | ||||
direct labor | 120700 | 74.0% | 42500 | 26.0% | 163200 | ||||
manufacturing overhead | 378171 | 74.0% | 133159 | 26.0% | 511330 | ||||
total cost assigned to products | 1236630 | ||||||||
selling & administrative cost | 590,000 | ||||||||
total cost. | 1826630 | ||||||||
B 300 | T -500 | ||||||||
% of total | % of total | Total | |||||||
amount | amount | amount | amount | amount | |||||
ABC based costing system | |||||||||
Direct costs | |||||||||
direct materials | 400000 | 71.2% | 162100 | 28.8% | 562100 | ||||
direct labor | 120700 | 74.0% | 42500 | 26.0% | 163200 | ||||
Advertising expense | 51,000 | 33.1% | 103,000 | 66.9% | 154000 | ||||
Indirect costs: | |||||||||
machining | 121635 | 59.0% | 84375 | 41.0% | 206010 | ||||
Setups | 29820 | 20.8% | 113400 | 79.2% | 143220 | ||||
product sustaining | 51000 | 50.0% | 51000 | 50.0% | 102000 | ||||
total cost assigned to products | 774155 | 556375 | 1330530 | ||||||
cost not assigned to products | |||||||||
Selling & administrative expense | 436,000 | ||||||||
other | 60,100 | ||||||||
total cost. | 1826630 | ||||||||
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts--the B300 and the T500. An absorption...
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc.Income StatementSales$1,716,000Cost of goods sold1,217,184Gross margin498,816Selling and administrative expenses610,000Net operating loss$(111,184) Hi-Tek produced and sold 60,200 units of B300 at a price of $20 per unit and 12,800 units of T500 at a price of $40 per unit. The company’s traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and...
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,716,000 1,227,300 488,700 590,000 $ (101,300) Hi-Tek produced and sold 60,200 units of B300 at a price of $20 per unit and 12,800 units of T500 at a price of $40 per unit. The...
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts--the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,639, 100 1,211,630 427, 470 570,000 $ (142,530) Hi-Tek produced and sold 60,200 units of B300 at a price of $19 per unit and 12,700 units of T500 at a price of $39 per...
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: $ Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,768, 200 1,247,348 520,852 640,000 (119,148) $ Hi-Tek produced and sold 60,200 units of B300 at a price of $21 per unit and 12,600 units of T500 at a price of $40 per unit....
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: $ Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,697,400 1,214,028 483,372 600,000 (116,628) $ Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12,600 units of T500 at a price of $39 per unit. The...
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,772,400 Cost of goods sold 1,242,484 Gross margin 529,916 Selling and administrative expenses 610,000 Net operating loss $ (80,084 ) Hi-Tek produced and sold 60,400 units of B300 at a price of $21 per unit and 12,600 units of T500 at a price of $40 per unit....
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,774,300 Cost of goods sold 1,251,130 Gross margin 523,170 Selling and administrative expenses 630,000 Net operating loss $ (106,830 ) Hi-Tek produced and sold 60,300 units of B300 at a price of $21 per unit and 12,700 units of T500 at a price of $40 per unit....
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,655,600 Cost of goods sold 1,233,735 Gross margin 421,865 Selling and administrative expenses 600,000 Net operating loss $ (178,135 ) Hi-Tek produced and sold 60,400 units of B300 at a price of $19 per unit and 12,700 units of T500 at a price of $40 per unit....
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,708,000 Cost of goods sold 1,228,693 Gross margin 479,307 Selling and administrative expenses 550,000 Net operating loss $ (70,693 ) Hi-Tek produced and sold 60,000 units of B300 at a price of $20 per unit and 12,700 units of T500 at a price of $40 per unit....
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,649,900 Cost of goods sold 1,222,294 Gross margin 427,606 Selling and administrative expenses 560,000 Net operating loss $ (132,394 ) Hi-Tek produced and sold 60,100 units of B300 at a price of $19 per unit and 12,700 units of T500 at a price...