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Hi-Tek | |||
Answer 1 | |||
Calculation of manufacturing overhead per unit under traditional costing | B300 | T500 | Total |
Direct Labor cost (D) | 120,100.00 | 42,900.00 | 163,000.00 |
Manufacturing overhead (A) | 500,700.00 | ||
Manufacturing overhead per direct labor cost (C=A/D) | 3.07 | ||
Allocated Manufacturing overhead (E=C*D) | 368,920.67 | 131,779.33 | 500,700.00 |
B300 | T500 | Total | |
Selling Price (B) | 20.00 | 40.00 | |
No. of units sold (F) | 60,200.00 | 12,800.00 | 73,000.00 |
Sales (G=B*F) | 1,204,000.00 | 512,000.00 | 1,716,000.00 |
Direct Materials | 400,900.00 | 162,700.00 | 563,600.00 |
Direct Labor | 120,100.00 | 42,900.00 | 163,000.00 |
Manufacturing overhead | 368,920.67 | 131,779.33 | 500,700.00 |
Gross Margin | 314,079.33 | 174,620.67 | 488,700.00 |
Advertising Expenses | 54,000.00 | 101,000.00 | 155,000.00 |
Net Margin (H) | 260,079.33 | 73,620.67 | 333,700.00 |
Product Margin (I=H/F) | 4.32 | 5.75 |
Answer 2 | J | K | L=J/K | M | N=M*L | O | P=L*O | Q=M+O | R=N+P |
Calculation of product margin under ABC costing: | B300 | T500 | Total | ||||||
Activities | Overhead cost | Total Activity | Activity Rate | Activity | Amount | Activity | Amount | Activity | Amount |
Machining (Machine Hours) | 209,610.00 | 153,000.00 | 1.37 | 90,100.00 | 123,437.00 | 62,900.00 | 86,173.00 | 153,000.00 | 209,610.00 |
Setups (Setups Hours) | 130,290.00 | 303.00 | 430.00 | 73.00 | 31,390.00 | 230.00 | 98,900.00 | 303.00 | 130,290.00 |
Product Sustaining (number of products) | 100,200.00 | 2.00 | 50,100.00 | 1.00 | 50,100.00 | 1.00 | 50,100.00 | 2.00 | 100,200.00 |
Total Overhead | 440,100.00 | 204,927.00 | 235,173.00 | 440,100.00 | |||||
Direct Materials | 400,900.00 | 162,700.00 | 563,600.00 | ||||||
Direct Labor | 120,100.00 | 42,900.00 | 163,000.00 | ||||||
Advertising Expenses | 54,000.00 | 101,000.00 | 155,000.00 | ||||||
Total Cost | 779,927.00 | 541,773.00 | 1,321,700.00 | ||||||
Sales | 1,204,000.00 | 512,000.00 | 1,716,000.00 | ||||||
Margin (S) | 424,073.00 | (29,773.00) | 394,300.00 | ||||||
Product Margin (T=S/F) | 7.04 | (2.33) |
Answer 3 | B300 | T500 | Total | |||
Traditional costing | Amount | % | Amount | % | Amount | % |
Direct Materials | 400,900.00 | 45.05% | 162,700.00 | 48.22% | 563,600.00 | 45.92% |
Direct Labor | 120,100.00 | 13.50% | 42,900.00 | 12.72% | 163,000.00 | 13.28% |
Manufacturing overhead | 368,920.67 | 41.46% | 131,779.33 | 39.06% | 500,700.00 | 40.80% |
Total cost assigned to products | 889,920.67 | 337,379.33 | 1,227,300.00 | |||
Advertising Expenses | 155,000.00 | |||||
Total cost | 1,382,300.00 |
Answer 3 | B300 | T500 | Total | |||
ABC costing | Amount | % | Amount | % | Amount | % |
Direct Costs | ||||||
Direct Materials | 400,900.00 | 51.40% | 162,700.00 | 30.03% | 563,600.00 | 42.64% |
Direct Labor | 120,100.00 | 15.40% | 42,900.00 | 7.92% | 163,000.00 | 12.33% |
Advertising Expenses | 54,000.00 | 6.92% | 101,000.00 | 18.64% | 155,000.00 | 11.73% |
Indirect Costs | ||||||
Machining (Machine Hours) | 123,437.00 | 15.83% | 86,173.00 | 15.91% | 209,610.00 | 15.86% |
Setups (Setups Hours) | 31,390.00 | 4.02% | 98,900.00 | 18.25% | 130,290.00 | 9.86% |
Product Sustaining (number of products) | 50,100.00 | 6.42% | 50,100.00 | 9.25% | 100,200.00 | 7.58% |
Total cost assigned to products | 779,927.00 | 541,773.00 | 1,321,700.00 | |||
Costs not assigned to products | ||||||
Organizational sustaining costs | 60,600.00 | |||||
Total cost | 1,382,300.00 |
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption...
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: $ Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,763,400 1,219,880 543, 520 560,000 (16,480) $ Hi-Tek produced and sold 60,200 units of B300 at a price of $21 per unit and 12,800 units of T500 at a price of $39 per unit....
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts--the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,772,400 1, 248,128 524,272 610,000 $ (85,728) Hi-Tek produced and sold 60,400 units of B300 at a price of $21 per unit and 12,600 units of T500 at a price of $40 per unit....
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: $ Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,710,000 1,254,560 455,440 630,000 (174,560) $ Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,700 units of T500 at a price of $40 per unit. The...
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,710,000 1,228,926 481,074 640,000 $ (158,926) Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,700 units of T500 at a price of $40 per unit. The...
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: $ Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,639,000 1,213,070 425,930 600,000 (174,070) $ Hi-Tek produced and sold 60,400 units of B300 at a price of $19 per unit and 12,600 units of T500 at a price of $39 per unit. The...
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,710,000 1, 207, 180 502,820 580,000 $ (77, 180) Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12,600 units of T500 at a price of $40...
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: $ Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,697,400 1,214,028 483,372 600,000 (116,628) $ Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12,600 units of T500 at a price of $39 per unit. The...
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,701,200 1,237, 124 464,076 590,000 $ (125,924) Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,800 units of T500 at a price of $39 per unit....
Hi-Tek Manufacturing. Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement S 1,644,88e 1,237,890 Sales Cost of goods sold Gross margin Selling and adninistrative expenses 486,918 бее, еее Net operating loss (193,e90) Hi-Tek produced and sold 60,500 units of B300 at a price of $19 per unit and 12700 units of T500 at a price of $39 per unit. The...
Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,705, 200 1, 226, 129 479,071 600,000 $ (120,929) Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12,800 units of T500 at a price of $39...