XYI manufactures two products: A and B. A review of the company's accounting record revealed the...
XYI manufactures two products: A and B. A review of the
company's accounting record revealed the following per-unit
information:
Production volume (units) A: 2,500 B: 5,000
Direct material A: $40 B: $60
Direct labor: A: 2 hours B: 3 hours
Direct labor costs budgeted for the period are $ 240,000. The total
amount of direct labor hours available is 24,000.
Manufacturing overhead per units is currently computed by
spreading overhead of $1,860.000 for direct labor hours. The
variable portion of manufacturing overhead is $300,000. Management
is considering a shift to activity-based costing in an effort to
improve the accounting procedures, and the following data are
available:
Cost Poo
| Cost pool | Cost | Cost Driver | A | B |
| Setups | $240,000 | Number of setups | 100 | 200 |
| General factory | 1,500,000 | Direct labor hours | 5,000 | 15,000 |
| Machine processing | 120,000 | Machine hours | 2,200 |
8,000 |
| 1,860,000 |
XYZ determines selling prices by adding 40% to a product's total
cost.
Required:
I. Compute the per-unit cost and selling price of product B by using XYZ's current procedures.
2 Compute the per-unit overhead cost of product B if the company switches to activity based costing.
3. Compute the total per-unit cost and selling price under
activity-based costing.
Homework Answers
Add Answer to:
XYI manufactures two products: A and B. A review of the
company's accounting record revealed the...
Could you please help me to solve this exercise, i know it is quite long, but...
Could you please help me to solve this exercise, i know it is
quite long, but please do as much as as you are allowed to do. I
appreciate very much if you can explain in details how the numbers
come from so that I can apply using the way for similar
exercises
Many thanks
) Cost assisgnment Evercise NYz manufactures two products: A and the following per-unit information A rview of the company accounting records revealed per-unit intformation Production...
Maxey & Sons manufactures two types of storage cabinets—Type A and Type B—and applies manufacturing overhead...
Maxey & Sons manufactures two types of storage cabinets—Type A and Type B—and applies manufacturing overhead to all units at the rate of $104 per machine hour. Production information follows. Type A Type B Anticipated volume (units) 20,800 39,000 Direct-material cost per unit $ 20 $ 30 Direct-labor cost per unit 25 25 The controller, who is studying the use of activity-based costing, has determined that the firm’s overhead can be identified with three activities: manufacturing setups, machine processing, and...
Maxey & Sons manufactures two types of storage cabinets—Type A and Type B—and applies manufacturing overhead...
Maxey & Sons manufactures two types of storage cabinets—Type A and Type B—and applies manufacturing overhead to all units at the rate of $160 per machine hour. Production information follows. Type A Type B Anticipated volume (units) 32,000 60,000 Direct-material cost per unit $ 48 $ 72 Direct-labor cost per unit 53 53 The controller, who is studying the use of activity-based costing, has determined that the firm’s overhead can be identified with three activities: manufacturing setups, machine processing, and...
Written please Dandy Desks Company manufactures two products: a standing desk and a portable desk. The...
Written please
Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Activity Pool Overhead Costs Total Driver Usage Setup $768,000 9,600 setups Materials purchasing $330.000 8.250 purchase orders Machining/fabricating $408,000 81,600 machine hours Total overhead costs $1,506,000 Standing Desks Portable Desks Number of Units Produced 120,000 30,000 Direct materials...
Please help Accounting question Snavely, Inc., manufactures and sells two products: Product E1 and Product A7....
Please help Accounting question
Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Labor-Hours Per Unit Total Direct Labor- Hours 4,800 800 5,600 Expected Production 600 200 Product E1 Product A7 Total direct labor-hours 8.0 4.0 The direct labor rate is $2710 per DLH. The direct materials cost per unit for each product is...
Salvatori, Inc., manufactures and sells two products: Product A4 and Product Q5. Data concerning the expected...
Salvatori, Inc., manufactures
and sells two products: Product A4 and Product Q5. Data concerning
the expected production of each product and the expected total
direct labor-hours (DLHs) required to produce that output appear
below: Expected Production Direct Labor-Hours Per Unit Total Direct
Labor-Hours Product A4 650 7.5 4,875 Product Q5 950 4.5 4,275 Total
direct labor-hours 9,150 The company has an activity-based costing
system with the following activity cost pools, activity measures,
and expected activity: Estimated Expected Activity Activity Cost...
Problem 1: Dandy Desks Company manufactures two products: a standing desk and a portable desk. The...
Problem 1: Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Manufacturing overhead is currently assigned to the products on the basis of direct labor hours. The company has gathered some activity information and is interested in the differences between its present costing method and activity-based costing. All overhead...
Activity Based Costing Maxey & Sons manufactures two types of storage cabinets-Type A and Type 8...
Activity Based Costing Maxey & Sons manufactures two types of storage cabinets-Type A and Type 8 and applies manufacturing overhead to all units at the rate of $160 per machine hour. Production Information follows. Type A 32.000 Type B 60,000 Anticipated volume (units) Direct-naterial cost per unit Direct-labor cost per unit The controller, who is studying the use of activity based costing, has determined that the firm's overhead can be identified with three activities: manufacturing setups, machine processing, and product...
Required information Greenwood Company manufactures two products-15,000 units of Product Y and 7,000 units of Product...
Required information Greenwood Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z Estimated Overhead Cost s 221,100 Expected ActivitY Activity Cost Pool Machining Machine setups Production...
Private Corporation manufactures two types of transponders—no. 156 and no. 157—and applies manufacturing overhead to all...
Private Corporation manufactures two types of transponders—no.
156 and no. 157—and applies manufacturing overhead to all units at
the rate of $78.00 per machine hour. Production information
follows.
No. 156
No. 157
Anticipated volume (units)
6,600
15,500
Direct material cost
$
43
$
68
Direct labor cost
40
28
The controller, who is studying the use of activity-based
costing, has determined that the firm's overhead can be identified
with three activities: manufacturing setups, machine processing,
and product shipping. Data on...
Could you please help me to solve this exercise, i know it is
quite long, but please do as much as as you are allowed to do. I
appreciate very much if you can explain in details how the numbers
come from so that I can apply using the way for similar
exercises
Many thanks
) Cost assisgnment Evercise NYz manufactures two products: A and the following per-unit information A rview of the company accounting records revealed per-unit intformation Production...
Written please
Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Activity Pool Overhead Costs Total Driver Usage Setup $768,000 9,600 setups Materials purchasing $330.000 8.250 purchase orders Machining/fabricating $408,000 81,600 machine hours Total overhead costs $1,506,000 Standing Desks Portable Desks Number of Units Produced 120,000 30,000 Direct materials...
Please help Accounting question
Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Labor-Hours Per Unit Total Direct Labor- Hours 4,800 800 5,600 Expected Production 600 200 Product E1 Product A7 Total direct labor-hours 8.0 4.0 The direct labor rate is $2710 per DLH. The direct materials cost per unit for each product is...
Salvatori, Inc., manufactures
and sells two products: Product A4 and Product Q5. Data concerning
the expected production of each product and the expected total
direct labor-hours (DLHs) required to produce that output appear
below: Expected Production Direct Labor-Hours Per Unit Total Direct
Labor-Hours Product A4 650 7.5 4,875 Product Q5 950 4.5 4,275 Total
direct labor-hours 9,150 The company has an activity-based costing
system with the following activity cost pools, activity measures,
and expected activity: Estimated Expected Activity Activity Cost...
Problem 1: Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Manufacturing overhead is currently assigned to the products on the basis of direct labor hours. The company has gathered some activity information and is interested in the differences between its present costing method and activity-based costing. All overhead...
Activity Based Costing Maxey & Sons manufactures two types of storage cabinets-Type A and Type 8 and applies manufacturing overhead to all units at the rate of $160 per machine hour. Production Information follows. Type A 32.000 Type B 60,000 Anticipated volume (units) Direct-naterial cost per unit Direct-labor cost per unit The controller, who is studying the use of activity based costing, has determined that the firm's overhead can be identified with three activities: manufacturing setups, machine processing, and product...
Required information Greenwood Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z Estimated Overhead Cost s 221,100 Expected ActivitY Activity Cost Pool Machining Machine setups Production...
Private Corporation manufactures two types of transponders—no.
156 and no. 157—and applies manufacturing overhead to all units at
the rate of $78.00 per machine hour. Production information
follows.
No. 156
No. 157
Anticipated volume (units)
6,600
15,500
Direct material cost
$
43
$
68
Direct labor cost
40
28
The controller, who is studying the use of activity-based
costing, has determined that the firm's overhead can be identified
with three activities: manufacturing setups, machine processing,
and product shipping. Data on...
Most questions answered within 3 hours.
-
Based on how much or how little you have noticed in the media,
do you think...
asked 1 hour ago -
I calculate Rosetta Stone’s P/E ratio as 10x prior to a report
about future industry growth....
asked 2 hours ago -
What major physiological changes account for electrodermal
activity (as in during a lie-detector test)?
asked 3 hours ago -
You are going to sell fruits & vegetables at a local
roadside market. List separately and...
asked 4 hours ago -
Hows does water affect the digestion of fats ?
asked 6 hours ago -
A buffer that contains 0.41 M of a base, B and 0.21 M of its
conjugate...
asked 6 hours ago -
Pleaaaaaaaasssssse help me please please it's more important
:((((((((((((((((((((
CASE STUDY
Nissan Company
Nissan Motor Company,...
asked 6 hours ago -
Calculate the concentration of hydronium and hyroxide ions in 1)
2.0 mol/L HNO3 2) 0.5 mol/L...
asked 7 hours ago -
In a loop-the-loop ride a car goes around a vertical, circular
loop at a constant speed....
asked 7 hours ago -
50 grams each of water (18.015 g/mol) and ethylene glycol
(C2H6O2) (62.07 g/mol) are mixed. At...
asked 7 hours ago -
The life expectancy of sport utility vehicles follows a normal
distribution with a mean of 145.8...
asked 7 hours ago -
If an object with mass of 5 kg is pushed with a force of 552 N,...
asked 7 hours ago