ABC costing uses different cost drivers for different activities to allocate cost to its products.
(1)
Model 145 | Model 212 | |||||||||||
Activity | Costs | Activity expected | Activity rate | Activity driver | Cost Assigned | Activity driver | Cost Assigned | |||||
Components | ||||||||||||
Changeover | $476,000 | 750 | Number of batches | $634.67 [$476,000/750] | per batch | 375 | $238,001.25[$634.67*375] | 375 | $238,001.25[$634.67*375] | |||
Machining | $303,000 | 7,980 | Machine hours |
$37.97 [303,000/7980] |
per machine hour | 2650 | $100,620.5[$37.97*2650] | 5330 | $202,380.1[$37.97*5330] | |||
Setups | $234,000 | 40 | Setups |
$5,850 [234,000/40] |
per setup | 20 | $117,000[$5,850*20] | 20 | $117,000[$5,850*20] | |||
FINISHING | ||||||||||||
Welding | $188,000 | 6500 | Welding hours |
$28.92 [188,000/6500] |
per welding hour | 2400 | $69,408[$28.92*2400] | 4100 | $118,572[$28.92*4100] | |||
Inspecting | $234,000 | 885 | Inspections |
$264.41 [234,000/885] |
per inspection | 515 | $136,171.15[264.41*515] | 370 | $97,831.7[$264.41*370] | |||
Rework | $60,500 | 220 | Rework orders |
$275 [60,500/220] |
per rework order | 170 | $46,750[$275*170] | 50 | $13,750[$275*50] | |||
Support | ||||||||||||
Purchasing | $135,000 | 537 | Purchase orders |
$251.40 [135,000/537] |
per purchase order | $90,001.2[$251.40*358] | $45,000.6[$251.40*179] | |||||
Providing space and utilities | $107,000 | 4830 | units |
$22.15 [107000/4830] |
per unit | $39,870[$22.15*1800] | $67,114.5[$22.15*3030] | |||||
Total overhead cost |
$8,37,822.1 |
$899,650.15 | ||||||||||
units produced | 1800 | 3030 | ||||||||||
cost per unit | $465.46[8,37,822.1/1800] | $296.91[899,650.15/3030] | ||||||||||
(2) cost per unit
145 | 212 | |||
Material an labor | $290 | $140 | ||
overhead cost | $465.46 | $296.91 | ||
Total cost | $755.46 | $436.91 | ||
[$290+465.46] | [$140+$296.91] |
(3)
145 | 212 | |||
Price per unit | $2,150 | $260 | ||
cost per unit | $755.46 | $436.91 | ||
Profit(Loss ) | $1,394.54($2,150-755.46) | -$176.91($260-$436.91) | ||
Hi, I need help please Exercise 4-8 Using departmental overhead rates to assess prices LO P2...
Exercise 17-8 Using departmental overhead rates to assess prices LO P2 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow Process Activity Overhead Coss Driver Quantity Components Changeover $ 458,000 Number of batches Machining 910,000 Machine hou Setups 226,000 aber...
Exercise 17-8 Using departmental overhead rates to assess prices LO P2 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 93e 7,950 2e Finishing...
Exercise 4-8 Using departmental overhead rates to assess prices LO P2 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 870 8.330 180 Pinishing...
Exercise 17-8 Using departmental overhead rates to assess prices LO P2 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Components Changeover Machining Setups Quantity 830 7,890 20 Finishing Welding Inspecting Rework Overhead Cost Driver $ 456,000 Number...
Exercise 17-8 Using departmental overhead rates to assess prices LO P2 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Components Changeover Machining Setupa Driver Number of batches Machine hours Number of setup Quantity 800 6,000 120 Finishing...
Exercise 04-9 Using departmental overhead rates to assess prices LO P2 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow Process Activity Components Changeover Machining Setups Quantity 890 8, 540 120 Rook Finishing Welding Inspecting Rework Overhead Cost Driver $...
Exercise 17-7 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and...
Exercise 17-7 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and...
Exercise 04-8 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and...
Exercise 04-8 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and...