a) | Computation of Predetermined OH rate | |||
Total budgeted OH cost | $ 852,000.00 | |||
Total budgeted Machine Hours | 100000 | |||
Predetermined OH rate | $ 8.52 |
b) | Computation of manu. cost per stairway under traditional costing | |||||
Particulars | Amount | |||||
Direct Materials | $ 103,600.00 | |||||
Direct Labor | $ 112,000.00 | |||||
OH | ($ 8.52 x 14500) | $ 123,540.00 | ||||
Total Manu. Cost | $ 339,140.00 | |||||
No. of units | 250 | |||||
Cost per unit | $ 1,356.56 |
c) | Computation of manu. cost per stairway under Activity Based Costing | ||||
Particulars | Amount | ||||
Direct Materials | $ 103,600.00 | ||||
Direct Labor | $ 112,000.00 | ||||
OH | (W.N) | $ 67,950.00 | |||
Total Manu. Cost | $ 283,550.00 | ||||
No. of units | 250 | ||||
Cost per unit | $ 1,134.20 |
Workings:
Computation of allocation rates | ||||
Activity Cost pool | Costs | Drivers Used | Cost per use | |
Purchasing | $ 69,000.00 | 600 | $ 115.00 | |
Handling materials | $ 82,000.00 | 8000 | $ 10.25 | |
Production | $ 210,000.00 | 100000 | $ 2.10 | |
Setting up machines | $ 95,000.00 | 1250 | $ 76.00 | |
Inspecting | $ 90,000.00 | 6000 | $ 15.00 | |
Inventory control | $ 126,000.00 | 168000 | $ 0.75 | |
Utilities | $ 180,000.00 | 90000 | $ 2.00 | |
$ 852,000.00 |
Allocation of OH | ||||
Activity Cost pool | Drivers Used | Cost per use | Cost allocated | |
Purchasing | 60 | $ 115.00 | $ 6,900.00 | |
Handling materials | 800 | $ 10.25 | $ 8,200.00 | |
Production | 5000 | $ 2.10 | $ 10,500.00 | |
Setting up machines | 100 | $ 76.00 | $ 7,600.00 | |
Inspecting | 450 | $ 15.00 | $ 6,750.00 | |
Inventory control | 16000 | $ 0.75 | $ 12,000.00 | |
Utilities | 8000 | $ 2.00 | $ 16,000.00 | |
$ 67,950.00 |
ACCT212 SEM 191-ASSIGNM QUESTION Thakin Stairs Co. designs and builds factory-made premium wooden stairways for homes....
Shaker Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2020 are as follows. Overhead Cost Pools Amount Purchasing $75,000 Handling materials 82,000 Production (cutting, milling, finishing) 220,000 Setting up machines 105,000 Inspecting 114,000 Inventory control (raw materials and finished goods) 126,000 Utilities 360,000 Total budgeted overhead...
P17-3A--- Shaker Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2017 are as follows. Overhead Cost Pools Amount Purchasing $ 75,000 Handling materials 82,000 Production (cutting, milling, finishing) 210,000 Setting up machines 105,000 Inspecting 90,000 Inventory control (raw materials and finished goods) 126,000 Utilities 180,000 Total...
Shaker Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2020 are as follows. Amount Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities $75,000 82,000 210,000 100,000 96,000 126,000 270,000 Total budgeted overhead...
Shaker Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2020 are as follows. Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Total budgeted overhead costs Amount $75,000 82,000 220,000 100,000 120,000 126,000...
Shaker Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2020 are as follows.Overhead Cost PoolsAmountPurchasing$75,000Handling materials82,000Production (cutting, milling, finishing)210,000Setting up machines100,000Inspecting96,000Inventory control (raw materials and finished goods)126,000Utilities450,000Total budgeted overhead costs$1,139,000For the last 4 years, Shaker Stairs Co. has been charging overhead to products on the basis...
Shaker Stairs Co.designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2020 are as follows. Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Total budgeted overhead costs Amount $75,000 82,000 220,000 105,000 108,000 126,000 270,000...
Question 2 Stellar Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths. All are made of white oak wood. The company's budgeted manufacturing overhead costs for 2020 are as follows: Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Total budget overhead costs Amount $68,000 81,000 204,000...
Problem 4-3A a-b, c1-c3 (Video) (Part Level Submission) Shaker Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2020 are as follows. Overhead Cost Pools Amount Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Total budgeted...
using P4-3A Shaker Stairs Co. designs and builds factory-made premium wooden stai ABC omes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2017 are as follows. Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Total budgeted overhead costs Amount $ 75,000 82,000 210,000...
Please show your calculations! Stellar Stairs Co. designs and builds factory-made premium wooden stairs for homes. The manufactured stair components (spindles, risers, hangers, hand rails) permit installation of stairs of varying lengths and widths. All are made of white oak wood. The company's budgeted manufacturing overhead costs for 2016 are as follows: Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Total budget overhead costs Amount $69,000...