-
Sand Castle Manufacturing produces concrete yard art. Recently,
2,500 concrete seahorses were produced in a production run. The run
required 1,250 machine hours, and also required five "set-ups" of
mixing equipment. Final inspection required 50 hours of inspection
activity. Overhead is estimated at $30 per machine hour, plus
$2,750 per "set-up," and $25 per inspection hour. Direct materials
and direct labor total $75 per seahorse. (a) Apply activity-based
costing and determine the amount assigned to a concrete seahorse.
(b) For...
-
Backyard Playground produces childrens swing-sets. 4,500 swing-sets were produced in a recent production run. The run required 1,500 machine hours, and also required four "set-ups" of equipment. Final inspection required 75 hours of inspection activity. Estimated overhead is estimated at $25 per machine hour, plus $3,500 per "set-up" and $20 per inspection hour. Direct materials and direct labor total $500 per swing-set. a) Apply activity-based costing and determine the amount assigned to a swing-set. b) For GAAP purposes, Backyard Playground...
-
A. Assuming use of
direct-labor hours to apply overhead to production, compute the
unit manufacturing costs of the Standard and Enhanced products if
the expected manufacturing volume is attained.
Manufacturing cost per unit: Standard $ ? and Enhanced $ ?
B. Assuming use of activity-based costing, compute the unit
manufacturing costs of the Standard and Enhanced products if the
expected manufacturing volume is attained.
Manufacturing cost per unit: Standard $ ? and Enhanced $ ?
C. By using direct-labor hours...
-
Consider the following situations:
(a)
Three Hands Co. manufactures metal candleholders. Using a
traditional manufacturing technique, Three Hands can produce a
batch of five hundred White Gothic candleholders using 500 kg of
alloy metal, 100 hours of labour time, and 3 hours of set-up time.
After a re-engineering study Three Hands can now produce the same
size batch of candleholders with only 300 kg of alloy metal, 60
hours of labour time, and 2 hours of set-up time. The labour...
-
1.Abbe Company uses activity-based costing. The company has two
products: A and B. The annual production and sales of Product A is
1,600 units and of Product B is 950 units. There are three activity
cost pools, with estimated costs and expected activity as
follows:
Activity Cost Pools
Estimated Overhead Cost
Expected Activity
Product A
Product B
Total
Activity 1
$
38,241
1,100
1,000
2,100
Activity 2
$
58,551
2,100
800
2,900
Activity 3
$
72,702
640
620
1,260
The...
-
Knowledge Check 01 Helio Company has two products: A and B. The annual production and sales of Product A is 1,850 units and of Product B is 1,250 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours per unit. The total estimated overhead for next period is $100,485. What is the company's predetermined overhead rate? Answer...
-
Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting Machine hours $262,360 Assembly 213,600 Direct labor hours Number of inspections Inspecting 32,980 35,640 Number of setu ps Setup Materials handling Number of loads 44,720 Corporate records were obtained to estimate the amount of activity to be used by the two products....
-
Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room ang faturesFive activities are used in manufacturing the futures. These activities and the a are as follows: c ted budgeted activity costs and activity bases Activity Casting Assembly Inspecting Budgeted Activity Cost Activity Base $320.00 Machine hours 192,950 Direct labor hours 38,920 Number of inspections 43,860 Number of setups 55,590 Number of loads Setup Materials handling Corporate records were obtained to estimate the amount of...
-
Wedge Industries, a small , family-run manufacturer, has adopted an ABC system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been estimated for the year: Click the icon to view activities, total costs, and cost drivers.) (Click the icon for additional information) Read the requirements 1. Compute the activity cost allocation rates for the year. (Round your answers to the nearest whole dollar.) Activity cost allocation rate Machine setups (per setup) Machining (per machine hour)...
-
Gamble Products has adopted an ABC costing system. The following manufacturing activities, indirect manufacturing costs, and cost drivers have been identified: (Click the icon to view the activity costs and drivers.) The Job Cost Record for Job #624 revealed that direct materials requisitioned for the job totaled $1,140. The Job Cost Record also showed that direct labor for this job totaled 6 hours at a wage rate of $22 per hour. Other data collected on the resources used by Job...
Backyard Playground produces childrens swing-sets. 4,500 swing-sets were produced in a recent production run. The run required 1,500 machine hours, and also required four "set-ups" of equipment. Final inspection required 75 hours of inspection activity. Estimated overhead is estimated at $25 per machine hour, plus $3,500 per "set-up" and $20 per inspection hour. Direct materials and direct labor total $500 per swing-set. a) Apply activity-based costing and determine the amount assigned to a swing-set. b) For GAAP purposes, Backyard Playground...
A. Assuming use of
direct-labor hours to apply overhead to production, compute the
unit manufacturing costs of the Standard and Enhanced products if
the expected manufacturing volume is attained.
Manufacturing cost per unit: Standard $ ? and Enhanced $ ?
B. Assuming use of activity-based costing, compute the unit
manufacturing costs of the Standard and Enhanced products if the
expected manufacturing volume is attained.
Manufacturing cost per unit: Standard $ ? and Enhanced $ ?
C. By using direct-labor hours...
Knowledge Check 01 Helio Company has two products: A and B. The annual production and sales of Product A is 1,850 units and of Product B is 1,250 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours per unit. The total estimated overhead for next period is $100,485. What is the company's predetermined overhead rate? Answer...
Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting Machine hours $262,360 Assembly 213,600 Direct labor hours Number of inspections Inspecting 32,980 35,640 Number of setu ps Setup Materials handling Number of loads 44,720 Corporate records were obtained to estimate the amount of activity to be used by the two products....
Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room ang faturesFive activities are used in manufacturing the futures. These activities and the a are as follows: c ted budgeted activity costs and activity bases Activity Casting Assembly Inspecting Budgeted Activity Cost Activity Base $320.00 Machine hours 192,950 Direct labor hours 38,920 Number of inspections 43,860 Number of setups 55,590 Number of loads Setup Materials handling Corporate records were obtained to estimate the amount of...
Wedge Industries, a small , family-run manufacturer, has adopted an ABC system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been estimated for the year: Click the icon to view activities, total costs, and cost drivers.) (Click the icon for additional information) Read the requirements 1. Compute the activity cost allocation rates for the year. (Round your answers to the nearest whole dollar.) Activity cost allocation rate Machine setups (per setup) Machining (per machine hour)...
Gamble Products has adopted an ABC costing system. The following manufacturing activities, indirect manufacturing costs, and cost drivers have been identified: (Click the icon to view the activity costs and drivers.) The Job Cost Record for Job #624 revealed that direct materials requisitioned for the job totaled $1,140. The Job Cost Record also showed that direct labor for this job totaled 6 hours at a wage rate of $22 per hour. Other data collected on the resources used by Job...