1) | Allocation | mops | overhead | dusters | overhead | ||
Activity cost pool | rate | usage | allocated | usage | allocated | ||
materials handling | 1 | 2300 | 2300 | 1600 | 1600 | ||
Machining | 11 | 235 | 2585 | 345 | 3795 | ||
Assembly | 1.8 | 1150 | 2070 | 1600 | 2880 | ||
inspection | 2 | 115 | 230 | 1500 | 3000 | ||
total overhead d | 7185 | 11275 | |||||
total manufacturing cost | |||||||
Mops | dusters | ||||||
Direct materials | 5,750 | 3,200 | |||||
direct labor | 13,800 | 13,800 | |||||
overhead allocated | 7185 | 11275 | |||||
total manufacturing cost | 26,735 | 28,275 | 55,010 | ||||
units started and completed | 1150 | 1600 | |||||
cost per unit | 23.25 | 17.67 | |||||
Mops | Dusters | ||||||
total manufacturing cost | 26,735 | 28,275 | |||||
cost per unit | 23.25 | 17.67 | |||||
2) | total manufacturing cost | ||||||
Mops | dusters | ||||||
Direct materials | 5,750 | 3,200 | |||||
direct labor | 13,800 | 13,800 | |||||
overhead allocated | 9230 | 9230 | |||||
total manufacturing cost | 28,780 | 26,230 | |||||
units started and completed | 1150 | 1600 | |||||
cost per unit | 25.03 | 16.39 | |||||
Mops | Dusters | ||||||
total manufacturing cost | 28,780 | 26,230 | |||||
cost per unit | 25.03 | 16.39 | |||||
WINEL Resea Brown Inc, manufactures and distributes two types of household items. The items, Mops and...
Brown Inc. manufactures and distributes two types of household items. The items, Mops and Dusters, are manufactured on a common assembly line by the same direct labourers. Different direct materials are used in each type, and the machinery is retooled for each product. Until now, manufacturing overhead costs have been allocated on the basis of direct labour-hours using a plantwide rate. However, the production manager has been reading about ABC and wishes to institute it for Brown's production operations. To...
Brown Inc. manufactures and distributes two types of household items. The items, Mops and Dusters, are manufactured on a common assembly line by the same direct labourers. Different direct materials are used in each type, and the machinery is retooled for each product. Until now, manufacturing overhead costs have been allocated on the basis of direct labour-hours using a plantwide rate. However, the production manager has been reading about ABC and wishes to institute it for Brown’s production operations. To...
Total: 20 marks A company manufactures household items sold at trade shows. The items, classified as either Tables or Frames, are manufactured on a common assembly line. Although different direct materials are used, the direct labour cost is the same for each product line. The plant-wide rate for allocating manufacturing overhead to its products is no longer acceptable. The production manager has heard about activity-based costing and has assembled some information for use in changing the cost system to a...
Don't Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in its processing costing system. Don't Cry uses a traditional costing system in the allocation of its manufacturing overhead (MOH) to production; MOH costs are allocated to production on the basis of machine hours logged during the period. Total estimated MOH for the period was $300,000 and total estimated machine hours were 100,000. The following data concern the operations of the company's first processing department,...
Don't Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in its processing costing system. Don't Cry uses a traditional costing system in the allocation of its manufacturing overhead (MOH) to production; MOH costs are allocated to production on the basis of machine hours logged during the period. Total estimated MOH for the period was $400,000 and total estimated machine hours were 100,000. The following data concern the operations of the company's first processing department,...
Don't Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in its processing costing system. Don't Cry uses a traditional costing system in the allocation of its manufacturing overhead (MOH) to production; MOH costs are allocated to production on the basis of machine hours logged during the period. Total estimated MOH for the period was $300,000 and total estimated machine hours were 100,000. The following data concern the operations of the company's first processing department,...
Don’t Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in its processing costing system.Don’t Cry uses a traditional costing system in the allocation of its manufacturing overhead (MOH) to production; MOH costs are allocated to production on the basis of machine hours logged during the period. Total estimated MOH for the period was$400,000 and total estimated machine hours were 100,000. The following data concern the operations of the company’s first processingdepartment, Assembly, for June...
Don’t Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in its processing costing system.Don’t Cry uses a traditional costing system in the allocation of its manufacturing overhead (MOH) to production; MOH costs are allocated to production on the basis of machine hours logged during the period. Total estimated MOH for the period was $400,000 and total estimated machine hours were 100,000. The following data concern the operations of the company’s first processingdepartment, Assembly, for...
Don’t Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in its processing costing system. Don’t Cry uses a traditional costing system in the allocation of its manufacturing overhead (MOH) to production; MOH costs are allocated to production on the basis of machine hours logged during the period. Total estimated MOH for the period was $400,000 and total estimated machine hours were 100,000. The following data concern the operations of the company’s first processing department,...
3. Short Round Inc manufactures two types of hats, fedoras and baseball caps. Fedoras require 2 hours of direct labor per unit to manufacture fedoras compared to 1 hour of direct labor per unit to produce baseball caps. Overhead is currently allocated to the two products on the basis of direct labor hours. Short Round estimated it would incur $510,000 in manufacturing overhead costs, and produce 10,000 units of fedoras and 40,000 units of baseball caps during the current year....