1) | predetermined overhead rate | ||||||||
total estimated manufacturing overhead/total estimated direct labor dollars | |||||||||
494580/162500 | |||||||||
3.043569 | |||||||||
product margin using traditional appraoch | |||||||||
B300 | T500 | total | |||||||
sales | 1264200 | 499200 | 1763400 | ||||||
less:Expenses | |||||||||
direct materials | 400700 | 162100 | 562800 | ||||||
direct labor | 120100 | 42400 | 162500 | ||||||
manufacturing OH applied @3.04 | 365533 | 129047 | 494580 | ||||||
total manufacturing cost | 886333 | 333547 | 1219880 | ||||||
product margin | 377867 | 165653 | 543520 | answer | |||||
2) | ABC activity based | ||||||||
Activity rates | |||||||||
(a) | (b) | c=a/b | |||||||
Activity cost pools | total cost | total | Activity rate | ||||||
activity | |||||||||
machining | 203,490 | 153,000 | 1.33 | per machine hour | |||||
Setups | 130,290 | 303 | 430 | per setup hour | |||||
product sustaining | 100,400 | 2 | 50200 | per product | |||||
product margin under ABC accounting | |||||||||
B300 | T500 | total | |||||||
sales | 1264200 | 499200 | 1763400 | ||||||
less:Expenses | |||||||||
direct materials | 400700 | 162100 | 562800 | ||||||
direct labor | 120100 | 42400 | 162500 | ||||||
Advertising expense | 52,000 | 104,000 | 156000 | ||||||
manufacturing overhead assigned | |||||||||
machining | 119966 | 83524 | 203490 | ||||||
Setups | 31390 | 98900 | 130290 | ||||||
product sustaining | 50200 | 50200 | 100400 | ||||||
total cost | 774,356 | 541,124 | 1315480 | ||||||
product margin | 489844 | -41924 | 447920 | ||||||
Traditional cost system | B 300 | T -500 | |||||||
3) | % of total | % of total | Total | ||||||
amount | amount | amount | amount | amount | |||||
Traditional cost system | |||||||||
Direct materials | 400700 | 71.2% | 162100 | 28.8% | 562800 | ||||
direct labor | 120100 | 73.9% | 42400 | 26.1% | 162500 | ||||
manufacturing overhead | 365533 | 73.9% | 129047 | 26.1% | 494580 | ||||
total cost assigned to products | 1219880 | ||||||||
selling & administrative cost | 560,000 | ||||||||
total cost. | 1779880 | ||||||||
B 300 | T -500 | ||||||||
% of total | % of total | Total | |||||||
amount | amount | amount | amount | amount | |||||
ABC based costing system | |||||||||
Direct costs | |||||||||
direct materials | 400700 | 71.2% | 162100 | 28.8% | 562800 | ||||
direct labor | 120100 | 73.9% | 42400 | 26.1% | 162500 | ||||
Advertising expense | 52,000 | 33.3% | 104,000 | 66.7% | 156000 | ||||
Indirect costs: | |||||||||
machining | 119966 | 59.0% | 83524 | 41.0% | 203490 | ||||
Setups | 31390 | 24.1% | 98900 | 75.9% | 130290 | ||||
product sustaining | 50200 | 50.0% | 50200 | 50.0% | 100400 | ||||
total cost assigned to products | 774356 | 541124 | 1315480 | ||||||
cost not assigned to products | |||||||||
Selling & administrative expense | 404,000 | ||||||||
other | 60,400 | ||||||||
total cost. | 1779880 | ||||||||
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 $ 1,772,400 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 $ 1,705, 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...
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 $ 1,716,000 1,227,300 488,700 590,000 $ (101,300) Hi-Tek produced and sold 60,200 units of B300 at a price of $20 per unit and 12,800 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 1,697,400 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 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,751,400 1,206,088 545, 312 630,000 $ (84,688) Hi-Tek produced and sold 60,000 units of B300 at a price of $21 per unit and 12,600 units of T500 at a price of $39 per unit....