Homework Answers
EX 18-15
A.
| Activity | Activity Cost Pool | Total Activity Base Usage | Activity Rate |
| Assembly | 105000 | 3000 | 35 |
| Test and Pack | 39000 | 3000 | 13 |
| Setup | 162000 | 180 | 900 |
B.
| Activity | Activity Rate | Blender | Toaster Oven | ||
| Activity-Base Usage | Activity Cost | Activity-Base Usage | Activity Cost | ||
| Assembly | 35 | 750 | 26250 | 2250 | 78750 |
| Test and Pack | 13 | 2250 | 29250 | 750 | 9750 |
| Setup | 900 | 135 | 121500 | 45 | 40500 |
| Total factory overhead $ | 177000 | 129000 | |||
| Number of units | 7500 | 7500 | |||
| Factory overhead per unit $ | 23.60 | 17.20 | |||
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B. Blender, $23.60 per unit EX 18-15 Activity-based costing and product cost distortion The management of...
✓ B. Blender, $23.60 per unit EX 18-15 Activity-based costing and product cost distortion Obj. 4...
✓ B. Blender, $23.60 per unit EX 18-15 Activity-based costing and product cost distortion Obj. 4 The management of Four Finger Appliance Company in Exercise 14 has asked you to use activity-based costing instead of direct labor hours to allocate factory overhead costs to the two products. You have determined that $81,000 of factory overhead from each of the produse tion departments can be associated with setup activity ($162,000 in total). Company recorde indicate that blenders required 135 setups, while...
Activity-Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures small kitchen appliances. The product...
Activity-Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: Assembly Department $186,000 Test and Pack Department 120,000 $306,000 Total The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department Test and Pack Department 2,250 dlh Blender 750 dlh Toaster...
Me- QuaignmentSessionLocator&i... > eBook Calculator Activity-Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures...
Me- QuaignmentSessionLocator&i... > eBook Calculator Activity-Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory ove sad is as follows: Assembly Department Test and Pack Department $186,000 120,000 $306,000 Total The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department 750 din Blender Toaster...
Activity-Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures small kitchen appliances. The product...
Activity-Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: Assembly Department $287,700 Test and Pack Department 144,700 Total $432,400 The direct labor information for the production of 3,900 units of each product is as follows: Assembly Department Test and Pack Department Blender 3,250 dlh 9,750 dlh Toaster...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blender...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: i Assembly Department $275,736.00 Test and Pack Department 2 201,046.00 Total 3 $476,782.00 The direct labor information for the production of 8,390 units of each product is as follows: Department Assembly Test and Pack Blender 740 dih 2,040 dih Toaster oven 2,205 680 Total...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: $186,000 Assembly Department Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department Test and Pack Department Blender 750 dlh 2,250 dlh Toaster oven 2,250 750 Total 3,000 dlh...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: $186,000 Assembly Department Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department Test and Pack Department Blender 750 dlh 2,250 dlh Toaster oven 2,250 750 Total 3,000 dlh...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: 1 Assembly Department $275,736.00 2 Test and Pack Department 201,046.00 3 Total $476,782.00 The direct labor information for the production of 8,390 units of each product is as follows: Department Assembly Test and Pack Blender 740 dlh 2,040 dlh Toaster oven 2,205 680 Total...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: 1 Assembly Department $188,505.00 2 Test and Pack Department 119,700.00 3 Total $308,205.00 The direct labor information for the production of 8,365 units of each product is as follows: Department Assembly Test and Pack Blender 665 dlh 1,960 dlh Toaster oven 2,530 890 Total...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: 1 Assembly Department $303,860.00 2 Test and Pack Department 222,580.00 3 Total $526,440.00 The direct labor information for the production of 7,945 units of each product is as follows: Department Assembly Test and Pack Blender 840 dlh 2,525 dlh Toaster oven 2,470 745 Total...
✓ B. Blender, $23.60 per unit EX 18-15 Activity-based costing and product cost distortion Obj. 4 The management of Four Finger Appliance Company in Exercise 14 has asked you to use activity-based costing instead of direct labor hours to allocate factory overhead costs to the two products. You have determined that $81,000 of factory overhead from each of the produse tion departments can be associated with setup activity ($162,000 in total). Company recorde indicate that blenders required 135 setups, while...
Activity-Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: Assembly Department $186,000 Test and Pack Department 120,000 $306,000 Total The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department Test and Pack Department 2,250 dlh Blender 750 dlh Toaster...
Me- QuaignmentSessionLocator&i... > eBook Calculator Activity-Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory ove sad is as follows: Assembly Department Test and Pack Department $186,000 120,000 $306,000 Total The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department 750 din Blender Toaster...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: i Assembly Department $275,736.00 Test and Pack Department 2 201,046.00 Total 3 $476,782.00 The direct labor information for the production of 8,390 units of each product is as follows: Department Assembly Test and Pack Blender 740 dih 2,040 dih Toaster oven 2,205 680 Total...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: $186,000 Assembly Department Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department Test and Pack Department Blender 750 dlh 2,250 dlh Toaster oven 2,250 750 Total 3,000 dlh...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: $186,000 Assembly Department Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department Test and Pack Department Blender 750 dlh 2,250 dlh Toaster oven 2,250 750 Total 3,000 dlh...
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