Hello,
Please help me answer, activity table Alpha, i first pasted the instructions and numbers needed and then pasted the actual Alpha table, thank you in advance
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows:
1 |
Activity |
Activity Cost Pool |
2 |
Production |
$238,830.00 |
3 |
Setup |
96,585.00 |
4 |
Material handling |
9,660.00 |
5 |
Inspection |
52,364.00 |
6 |
Product engineering |
171,622.00 |
7 |
Total |
$569,061.00 |
The activity bases identified for each activity are as follows:
Activity |
Activity Base |
Production | Machine hours |
Setup | Number of setups |
Material handling | Number of parts |
Inspection | Number of inspection hours |
Product engineering | Number of engineering hours |
The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows:
Machine | Number of | Number of | Number of | Number of | ||
Hours | Setups | Parts | Inspection Hours | Engineering Hours | Units | |
Alpha | 901 | 62 | 73 | 428 | 134 | 1,245 |
Beta | 773 | 117 | 156 | 313 | 191 | 918 |
Omega | 421 | 232 | 254 | 247 | 213 | 520 |
Total | 2,095 | 411 | 483 | 988 | 538 | 2,683 |
Each product requires 40 minutes per unit of machine time.
Required: | |||||||||
Complete the Activity Tables for Alpha, Beta and Omega.
|
Answer
Activity | Usage | Activity Rate | Activity Cost | ||||
Production | 901 | mh | X | $ 114 | per mh | = | $ 102,714 |
Setup | 62 | setups | X | $ 235 | per setup | = | $ 14,570 |
Material handling | 73 | parts | X | $ 20 | per part | = | $ 1,460 |
Inspection | 428 | insp hours | X | $ 53 | per insp hour | = | $ 22,684 |
Product engineering | 134 | eng hours | X | $ 319 | per eng hour | = | $ 42,746 |
Total activity cost | $ 184,174 | ||||||
Total units | 1245 | ||||||
Activity cost per unit | $ 147.93 |
Calculations:
Activity | Activity Rate | |
Production | =$238,830 / 2,095 | per mh |
Setup | =$96,585 / 411 | per setup |
Material handling | =$9,660/ 483 | per part |
Inspection | =$52,364 / 988 | per insp hour |
Product engineering | =$171,622 / 538 | per eng hour |
In case of any doubt, please comment.
Hello, Please help me answer, activity table Alpha, i first pasted the instructions and numbers needed...
Instructions Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: 1 Activity Activity Cost Pool 2 Production $242,089.00 3 Setup 88,425.00 4. Material handling 9,253.00 5 Inspection 49,623.00 6 Product engineering 167,990.00 7 Total $557,380.00 Production Machine hours Setup...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:
1
Activity
Activity Cost Pool
2
Production
$238,830.00
3
Setup
96,585.00
4
Material handling
9,660.00
5
Inspection
52,364.00
6
Product engineering
171,622.00
7
Total
$569,061.00
The activity bases identified for...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:
1
Activity
Activity Cost Pool
2
Production
$238,830.00
3
Setup
96,585.00
4
Material handling
9,660.00
5
Inspection
52,364.00
6
Product engineering
171,622.00
7
Total
$569,061.00
The activity bases identified for...
Instructions Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process, Senior management has asked the controllor to conduct an activity based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows Activity 7 Production 1 Setup . Material handling Inspection Product engineering Total Activity Cost Pool $259,200.00 55,000.00 9,750.00 60,000.00 123,200.00 $507,150.00 1 The activity bases identified for each...
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Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: 1 Activity Activity Cost Pool 2 Production $251,598.00 3 Setup 92,035.00 4 Material handling 10,736.00 5 Inspection 49,833.00 6 Product engineering 136,230.00 7 Total $540,432.00 The activity bases identified for...
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: 1 Activity Activity Cost Pool 2 Production $251,598.00 3 Setup 92,035.00 4 Material handling 10,736.00 5 Inspection 49,833.00 6 Product engineering 136,230.00 7 Total $540,432.00 The activity bases identified for...
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