Question

1. Consider the costing system for Grange Boats. It produces two products – the C-20 (a 20-foot sailboat) and the C-27 (a 27-

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Ans:

Computation of Unit Cost of Each Product
Particulars C-27 C-20
1.Direct Materials 80,000 120,000
2.Direct Labor 140,000 160,000
3.Manufacturing Overhead(36*4000:6000) 144,000 216,000
4.Total cost 364,000 496,000
5.Total Number of Units produced 20 60
6.Per Unit Cost(4/5) 18200 8266.67
Working Notes
1.Manufacturing Overhead Cost 360,000
2.Total Number of Direct labour Hours(4000+6000) 10,000
3.Manufacturing Overhead Cost Per Hour(1/2) 36
Add a comment
Know the answer?
Add Answer to:
1. Consider the costing system for Grange Boats. It produces two products – the C-20 (a...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Joshua, Inc. uses activity-based costing. The company produces two products, 001 and 002. Information relating to...

    Joshua, Inc. uses activity-based costing. The company produces two products, 001 and 002. Information relating to the two products is as follows: 001 002 Units produced 19,000 25,000 Machine-hours 7,500 8,500 Direct labor-hours 8,000 12,000 Materials handling (number of moves) 4,000 6,000 Setups 5,000 7,000 The following costs for the year are reported: Materials handling $160,000 Labor-related overhead 480,000 Setups 300,000 Based on the above information, Material Handling costs assigned to Product 001 for the year are: Group of answer...

  • Joshua, Inc. uses activity-based costing. The company produces two products, 001 and 002. Information relating to...

    Joshua, Inc. uses activity-based costing. The company produces two products, 001 and 002. Information relating to the two products is as follows: 001 002 Units produced 19,000 25,000 Machine-hours 7,500 8,500 Direct labor-hours 8,000 12,000 Materials handling (number of moves) 4,000 6,000 Setups 5,000 7,000 The following costs are reported: Materials handling $160,000 Labor-related overhead 480,000 Setups 300,000 Setup costs assigned to 002 are:

  • Churchill Products is considering updating its cost system to an activity-based costing system and is interested...

    Churchill Products is considering updating its cost system to an activity-based costing system and is interested in understanding the effects. The company’s cost accountant has identified three overhead cost pools along with appropriate cost drivers for each pool. Cost Pools Costs Activity Drivers Utilities $ 320,000 64,000 machine-hours Scheduling and setup 310,000 620 setups Material handling 795,000 1,590,000 pounds of material The company manufactures three models of water basins (Oval, Round, and Square). The plans for production for the next...

  • AbC Company is a Contracting Company that builds custom- made boats. It received from MVB an...

    AbC Company is a Contracting Company that builds custom- made boats. It received from MVB an order to build 5 custom-made boats. The boats are to be delivered in 6 months with the first two to be delivered in the next two months. The following costs are incurred for the two boats to be delivered in two months: Direct Materials                                               $ 80,000                                                                              Direct Labor                                                        $120,000                        Manufacturing Overhead is applied at 150% of Direct Labor. Required: How Much...

  • Houston Company produces two products. Standard and Jumbo, and currently uses a costing system that accumulates...

    Houston Company produces two products. Standard and Jumbo, and currently uses a costing system that accumulates all overhead costs in a single cost pool and assigns it to products based on direct labor dollars. After completing a study that showed overhead costs were driven by factors other than volume, Houston's management has decided to implement an activity based costing (ABC) system. The study showed that manufacturing overhead costs could be associated with three activities: (1) purchasing. (2) receiving, and (3)...

  • Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company...

    Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year: Molding Fabrication Total Machine-hours 20,000 30,000 50,000 Fixed manufacturing overhead costs $ 700,000 $ 210,000 $ 910,000 Variable manufacturing overhead cost per machine-hour $ 3.00 $ 1.00 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the...

  • #27 how do you solve it? the anser is A Sphere Company produces two products, Alpha...

    #27 how do you solve it? the anser is A Sphere Company produces two products, Alpha and Beta. Alpha is a high-volume item totaling 20,000 units annually, Beta is a low-volume item totaling only 6,000 units per year. Alpha requires one hour of direct labor for completion, while each unit of Beta requires 2 hours. Therefore, total annual direct labor hours are 32,000 (20,000 + 12,000). Expected annual manufacturing overhead costs are $640,000. Sphere uses a traditional costing system and...

  • Radley Products has adopted an ACB costing system. The following manufacturing activities, indirect manufacturing costs, and...

    Radley Products has adopted an ACB costing system. The following manufacturing activities, indirect manufacturing costs, and cost drivers have been identified Machine setup 120,000 2,000 setups Machining 1,050,000 6,000 machine hrs Polishing 80,000 10,000 polishing cloths Quality control 280,000 4,000 test runs Facility-level costs 120,000 50,000 DL hrs MOH 1,650,000 The Job Cost Record for Job #624 revealed that direct materials requisitioned for the job totaled $1,050. the Job Cost Record also showed that direct labor for this job totaled...

  • Problem 2 (Supplemental Problem #2) – Activity-based costing versus traditional costing Lovelace Company produces only two...

    Problem 2 (Supplemental Problem #2) – Activity-based costing versus traditional costing Lovelace Company produces only two products: reading glasses and sunglasses. The company uses a normal cost system and overhead costs are currently allocated using a plant-wide overhead rate based on direct labor hours. Outside cost consultants have recommended that the company use activity-based costing to charge overhead to products. The company expects to produce 4,000 reading glasses and 8,000 sunglasses this year. Each pair of reading glasses requires two...

  • Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company...

    Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year:    Molding Fabrication Total Machine-hours 20,000 30,000 50,000 Fixed manufacturing overhead costs $ 700,000 $ 210,000 $ 910,000 Variable manufacturing overhead cost per machine-hour $ 3.00 $ 1.00 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT