A | |||||
Allocation rate | 25 | =625000/25000 | |||
Product | Allocation rate | X | Weight of Base | = | Allocated Cost |
Vogue | 25 | X | 5400 | = | 135000 |
Beauty | 25 | X | 7400 | = | 185000 |
Glamour | 25 | X | 12200 | = | 305000 |
Total | 625000 | ||||
B | |||||
Allocation rate | 125 | =625000/5000 | |||
Product | Allocation rate | X | Weight of Base | = | Allocated Cost |
Vogue | 125 | X | 1500 | = | 187500 |
Beauty | 125 | X | 1400 | = | 175000 |
Glamour | 125 | X | 2100 | = | 262500 |
Total | 625000 |
12 G Saved Walton Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour....
Walton Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Walton expects to incur $625,000 of overhead cost during the next fiscal year. Other budget information follows. Direct labor hours Machine hours Vogue 5,400 1,500 Beauty 7,400 1,400 Glamour 12,200 2,100 Total 25,000 5,000 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to compute...
Gibson Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour, Gibson expects to incur $666,000 of overhead cost during the next fiscal year. Other budget information follows. Direct labor hours Machine hours Vogue Beauty Glamour Total 3,400 5,400 9,200 18,000 1,200 2,050 2,300 5,550 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product b. Use machine hours as the cost driver to compute...
Stuart Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Stuart expects to incur $645,000 of overhead cost during the next fiscal year. Other budget information follows. Vogue Beauty Glamour Total Direct labor hours 4,800 6,800 3,400 15,000 Machine hours 1,200 1,400 1,700 4,300 2728 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to...
Tyson Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Tyson expects to incur $550,000 of overhead cost during the next fiscal year. Other budget information follows: Vogue Beauty Glamour Total Direct labor hours 6,000 8,000 11,000 25,000 Machine hours 1,100 1,400 3,000 5,500 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to compute...
Rundle Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Rundle expects to incur $644,000 of overhead cost during the next fiscal year. Other budget information follows. Vogue Beauty Glamour Total Direct labor hours 4,200 6,200 3,600 14,000 Machine hours 2,000 2,200 2,240 6,440 Required Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Use machine hours as the cost driver to compute the allocation...
Perez Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Perez expects to incur $630,000 of overhead cost during the next fiscal year. Other budget information follows: Vogue Beauty Glamour Total Direct labor hours 4,000 6,000 4,000 14,000 Machine hours 1,500 1,400 1,600 4,500 Required Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Use machine hours as the cost driver to compute the allocation...
Exercise 4-5A Allocating overhead cost among products LO 4-3 Tyson Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Tyson expects to incur $550,000 of overhead cost during the next fiscal year. Other budget information follows: Direct labor hours Machine hours Vogue 6,000 1,100 Beauty Glamour 8,000 11,000 1,400 3,000 Total 25,000 5,500 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b....
Jefferson Company expects to incur $460,000 in manufacturing overhead costs during 2014. Other budget information is below Dept A Dept B Dept C Direct Labor hours 15,000 5,000 20,000 Machine Hours 8,000 10,000 12,000 1. Use direct labor hours as a cost drive to compute the allocation rate: Determine the amount budgeted overhead cost for each department 2. Use Machine hours as a cost driver to compute the allocation . Determine the amount budgeted overhead cost for each department 3....
Walton Electronics produces video games in three market categories: commercial, home, and miniature. Walton has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations that rendered the traditional costing system ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers: Category Total Pooled Cost Types of Costs Cost Driver Unit $...
Kitchen Supply, Inc. (KSI), manufactures three types of flatware: institutional, standard, and silver. It applies all indirect costs according to a predetermined rate based on direct labor-hours. A consultant recently suggested that the company switch to an activity-based costing system and prepared the following cost estimates for year 2 for the recommended cost drivers. Recommended Cost Driver Number of orders Number of production runs Pounds of materials used Estimated Cost $ 46,000 198,000 260,000 Estimated Cost Driver Activity 200 orders...