1 | Plantwide rate=Total overhead cost/Total machine hours | |||||||
Total overhead cost=68400+26664+16020+30744=$ 141828 | ||||||||
Total machine hours=19000+19000=38000 | ||||||||
Plantwide rate=141828/38000=$ 3.73 per machine hour | ||||||||
Overhead assigned=Machine hours*Plantwide rate | ||||||||
Infantry: | ||||||||
Overhead assigned=19000*3.73=$ 70870 | ||||||||
Special forces: | ||||||||
Overhead assigned=19000*3.73=$ 70870 | ||||||||
2 | Consumption ratio=Activity for the product/Total activity | |||||||
Infantry | Special forces | |||||||
Machining | 0.50 | 0.50 | ||||||
19000/(19000+19000) | 19000/(19000+19000) | |||||||
Setup | 0.75 | 0.25 | ||||||
330/(330+110) | 110/(330+110) | |||||||
Receiving | 0.90 | 0.10 | ||||||
810/(810+90) | 90/(810+90) | |||||||
Packing | 0.67 | 0.33 | ||||||
1680/(1680+840) | 840/(1680+840) | |||||||
3 | Activity rate=Activity cost/Total activity | |||||||
Machining=68400/(19000+19000)=68400/38000=$ 1.8 per machine hour | ||||||||
Setup=26664/(330+110)=26664/440=$ 60.6 per setup | ||||||||
Receiving=16020/(810+90)=16020/900=$ 17.8 per order | ||||||||
Packing=30744/(1680+840)=30744/2520=$ 12.2 per order | ||||||||
4 | Overhead assigned=Consumption ratio*Activity rate | |||||||
Infantry | Special forces | |||||||
Activity | Activity rate | Overhead assigned | Activity | Activity rate | Overhead assigned | |||
a | b | a*b | c | d | c*d | |||
Machining | 19000 | 1.8 | 34200 | 19000 | 1.8 | 34200 | ||
Setup | 330 | 60.6 | 19998 | 110 | 60.6 | 6666 | ||
Receiving | 810 | 17.8 | 14418 | 90 | 17.8 | 1602 | ||
Packing | 1680 | 12.2 | 20496 | 840 | 12.2 | 10248 | ||
Total | 89112 | 52716 | ||||||
Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are...
Ratios, Activity Rates, <xercise 5-49 Product-Costing Accuracy, Consumption Ratios, Activih Activity Costing ers: infantry and spe Tristar Manufacturing produces two types of battery-operated toy soldiers: infantru Forces. The soldiers are produced by using one continuous process. Four activities ha dentified: machining, setups, receiving, and packing. Resource drivers have been sign costs to each activity. The overhead activities, their costs, and the other related da. Collows: Packing Orders 1,600 Product Infantry Special forces Costs Machine Hours 20,000 20,000 $80,000 300 100...
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