Requirement 1
Activity rate | ||
Setups | $ 3,700.00 | Per setup |
Machining | $ 100.00 | Per machine hour |
Engineering | $ 60.00 | Per engineering hour |
Packing | $ 0.40 | Per packing order |
Requirement 2
Deluxe | $ 670.50 per unit |
Regular | $ 529.13 per unit |
Working
Calculation of Activity rates | |||||
Activity Cost Pool | Activity driver | Overhead Cost (A) | Expected Activity (B) | Activity rate (A/B) | |
Setups | Number of setup | $ 1,850,000 | 500 | $ 3,700.00 | Per setup |
Machining | Number of machine hour | $ 40,000,000 | 400000 | $ 100.00 | Per machine hour |
Engineering | Number of engineering hour | $ 9,000,000 | 150000 | $ 60.00 | Per engineering hour |
Packing | Number of packing order | $ 200,000 | 500000 | $ 0.40 | Per packing order |
.
Cost assigned to Deluxe | |||
Activity name | Activity Rates | Activity | ABC Cost |
(A) | (B) | (A x B) | |
Setups | $ 3,700.00 | 300.00 | $ 1,110,000 |
Machining | $ 100.00 | 100,000.00 | $ 10,000,000 |
Engineering | $ 60.00 | 50,000.00 | $ 3,000,000 |
Packing | $ 0.40 | 100,000.00 | $ 40,000 |
Total Overheads assigned | $ 14150000.,0 | ||
Production | 100,000.00 | ||
Overhead cost per unit | $ 141.50 |
.
Cost assigned to Regular | |||
Activity name | Activity Rates | Activity | ABC Cost |
(A) | (B) | (A x B) | |
Setups | $ 3,700.00 | 200 | $ 740,000 |
Machining | $ 100.00 | 300000 | $ 30,000,000 |
Engineering | $ 60.00 | 100000 | $ 6,000,000 |
Packing | $ 0.40 | 400000 | $ 160,000 |
Total Overheads assigned | $ 36,900,000 | ||
Production | 800,000.00 | ||
Overhead cost per unit | $ 46.13 |
.
ABC Costing | ||
Deluxe | Regular | |
Prime cost | $ 529.00 | $ 483.00 |
Overheads | $ 141.50 | $ 46.13 |
Total Cost per unit | $ 670.50 | $ 529.13 |
Adity a nd Activity and Product Casting Hammer Company produces a variety of ectronicament. One of...
Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 $750 Selling price $900 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost...
Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost...
Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost...
Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost Setups Number of setups 300 200...
Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost Setups Number of setups 300 200...
Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost...
Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Activity Cost Regular 200 Setups Number of setups 300...
Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 $900 800,000 $750 Selling price Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Setups Number of setups 300 Machining Machine hours...
Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost Setups Number of setups 300 200...
Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost...