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Vaughn is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 FM-9 18,000 3,120 16,000 28,000 4,000 80 0.50 lbs. 4 lbs. The company incurs $1,312,438 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per...
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Vaughn is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 FM-9 18,000 3,120 16,000 28,000 4,000 80 0.50 lbs. 4 lbs. The company incurs $1,312,438 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per...
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Problem 7-21 Crane is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 FM-9 18,000 3,600 24,000 19,000 4,000 90 0.50 lbs. 4 lbs. The company incurs $1,412,655 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base?...
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Problem 7-21 Sheffield is an electronics components manufacturer, Information about the company's two products follows: AM-2 FM- Units produced 21,200 3,690 Direct labor hours required for production 20,000 24,000 units per batch Shipping weight per unit The company incurs 51,505,079 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. 4.000 C) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per unitra AM-2 FM-...
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Problem 7-21 – Comparing traditional and ABC
costs
Name:
Course:
Date:
Ellis Perry is an electronics components
manufacturer. Information about the company’s two
products follows:
AM-2
FM-9
Units produced
15,000
2,000
Direct labor hours required for production
15,000
14,000
Units per batch
3,000
50
Shipping weight per unit
0.5 lbs.
4 lbs.
The company incurs $899,000 in overhead per year
and has traditionally applied overhead on the basis of direct labor
hours.
Required
a.
How much overhead will be allocated to...
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Sheridan Machining makes three products. The company’s annual
budget includes $1,104,300 of overhead. In the past, the company
allocated overhead based on expected capacity of 40,000direct labor
hours. The company recently implemented an activity-based costing
system and has determined that overhead costs can be broken into
four overhead pools: order processing, setups, milling, and
shipping. The following is a summary of company information:
Expected CostExpected
ActivitiesOrder processing $283,900 17,000 orders
Setups168,000 4,200 setups Milling 377,400 20,400 machine hours
Shipping275,000 25,000...
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Rocky Mountain Corporation makes two types of hiking
boots—Xactive and Pathbreaker. Data concerning these two product
lines appear below:
Xactive
Pathbreaker
Direct materials
per unit
$
65.10
$
51.30
Direct labor
cost per unit
$
18.50
$
13.30
Direct
labor-hours per unit
1.4
DLHs
1
DLHs
Estimated annual
production and sales
28,000
units
78,000
units
The company has a conventional costing system in which
manufacturing overhead is applied to units based on direct
labor-hours. Data concerning manufacturing overhead and direct...
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A)
B)
C)
Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $614,400 of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Estimated Expected Overhead Cost Activity $ 198,000 10,000 MHs $ a 86,400...
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Required information Greenwood Company manufactures two products -15,000 units of Product Y and 7000 units of Product uses a plantwide overhead rate based on direct labor-hours. It is considering implementin UASRC I system that allocates all of its manufacturing overhead to four cost pools. The followirig g an activity-based costing information is available for the company as a whole and for Products Y and Z Estimated Overhead Act tivity Cost Pool Activity MeasureCost Expected ActivitY Machining Machine setups Production design...
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Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: $ $ Xactive 63.80 17.20 1.4 DLHS 15,000 units Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales $ $ Pathbreaker 50.00 12.00 1 DLHs 65,000 units The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct...
Vaughn is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 FM-9 18,000 3,120 16,000 28,000 4,000 80 0.50 lbs. 4 lbs. The company incurs $1,312,438 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per...
Vaughn is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 FM-9 18,000 3,120 16,000 28,000 4,000 80 0.50 lbs. 4 lbs. The company incurs $1,312,438 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per...
Problem 7-21 Crane is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 FM-9 18,000 3,600 24,000 19,000 4,000 90 0.50 lbs. 4 lbs. The company incurs $1,412,655 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base?...
Problem 7-21 Sheffield is an electronics components manufacturer, Information about the company's two products follows: AM-2 FM- Units produced 21,200 3,690 Direct labor hours required for production 20,000 24,000 units per batch Shipping weight per unit The company incurs 51,505,079 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. 4.000 C) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per unitra AM-2 FM-...
Rocky Mountain Corporation makes two types of hiking
boots—Xactive and Pathbreaker. Data concerning these two product
lines appear below:
Xactive
Pathbreaker
Direct materials
per unit
$
65.10
$
51.30
Direct labor
cost per unit
$
18.50
$
13.30
Direct
labor-hours per unit
1.4
DLHs
1
DLHs
Estimated annual
production and sales
28,000
units
78,000
units
The company has a conventional costing system in which
manufacturing overhead is applied to units based on direct
labor-hours. Data concerning manufacturing overhead and direct...
A)
B)
C)
Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $614,400 of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Estimated Expected Overhead Cost Activity $ 198,000 10,000 MHs $ a 86,400...
Required information Greenwood Company manufactures two products -15,000 units of Product Y and 7000 units of Product uses a plantwide overhead rate based on direct labor-hours. It is considering implementin UASRC I system that allocates all of its manufacturing overhead to four cost pools. The followirig g an activity-based costing information is available for the company as a whole and for Products Y and Z Estimated Overhead Act tivity Cost Pool Activity MeasureCost Expected ActivitY Machining Machine setups Production design...
Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: $ $ Xactive 63.80 17.20 1.4 DLHS 15,000 units Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales $ $ Pathbreaker 50.00 12.00 1 DLHs 65,000 units The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct...