Runner Electronics manufactures portable power supply units. Runner has recently decided to use an activity-based approach...
Runner Electronics manufactures portable power supply units.
Runner has recently decided to use an activity-based approach to
cost its products. Production line setups is a major activity at
Runner. Next year Runner expects to perform 1,990 setups at a total
cost of $2,507,400. Runner plans to produce 700 units of product
EP150, which will require 2 setups.
How much setup cost will be allocated to each unit of EP150
produced? (Round answer to 2 decimal places, e.g.
15.25.)
Homework Answers
It is given in the question that the total setup cost for setting up production lines is $ 2,507,400. Also, The management plans to perform 1,990 setups. So, firstly, we should ascertain the cost to be incurred for performing one setup.
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Runner Electronics manufactures portable power supply units.
Runner has recently decided to use an activity-based approach...
Exercise 6-15 Runner Electronics manufactures portable power supply units. Runner has recently decided to use an...
Exercise 6-15 Runner Electronics manufactures portable power supply units. Runner has recently decided to use an activity-based approach to cost its products. Production line setups is a major activity at Runner. Next year Runner expects to perform 1,990 setups at a total cost of $2,507,400. Runner plans to produce 700 units of product EP150, which will require 2 setups. How much setup cost will be allocated to each unit of EP150 produced? (Round answer to 2 decimal places, e.g. 15.25.)
Activity-Based Costing Zeus Industries manufactures two types of electrical power units, custom and standard, which involve...
Activity-Based Costing Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities—production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities: Activity Activity Cost Activity Base Production setup $ 67,500 Number of setups Procurement 126,000 Number of purchase orders (PO) Quality control 156,000 Number of inspections Materials management 147,000 Number of components Total $496,500 The activity-base...
Problem 1: Dandy Desks Company manufactures two products: a standing desk and a portable desk. The...
Problem 1: Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Manufacturing overhead is currently assigned to the products on the basis of direct labor hours. The company has gathered some activity information and is interested in the differences between its present costing method and activity-based costing. All overhead...
Written please Dandy Desks Company manufactures two products: a standing desk and a portable desk. The...
Written please
Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Activity Pool Overhead Costs Total Driver Usage Setup $768,000 9,600 setups Materials purchasing $330.000 8.250 purchase orders Machining/fabricating $408,000 81,600 machine hours Total overhead costs $1,506,000 Standing Desks Portable Desks Number of Units Produced 120,000 30,000 Direct materials...
Activity-Based Costing Zeus Industries manufactures two types of electrical power units, custom and standard, which involve...
Activity-Based Costing Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities-production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities: Activity Activity Cost Production setup Procurement $ 58,500 136,500 182,000 200,000 Activity Base Number of setups Number of purchase orders (PO) Number of inspections Number of components Quality control Materials management Total $577,000 The activity-base...
Vaughn is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct...
Vaughn is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 FM-9 18,000 3,120 16,000 28,000 4,000 80 0.50 lbs. 4 lbs. The company incurs $1,312,438 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per...
Vaughn is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct...
Vaughn is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 FM-9 18,000 3,120 16,000 28,000 4,000 80 0.50 lbs. 4 lbs. The company incurs $1,312,438 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per...
Problem 7-21 Crane is an electronics components manufacturer. Information about the company's two products follows: Units...
Problem 7-21 Crane is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 FM-9 18,000 3,600 24,000 19,000 4,000 90 0.50 lbs. 4 lbs. The company incurs $1,412,655 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base?...
Marigold is an electronics components manufacturer. Information about the company’s two products follows: AM-2 FM-9 Units...
Marigold is an electronics components manufacturer. Information
about the company’s two products follows:
AM-2
FM-9
Units produced
15,900
2,000
Direct labor hours required for production
21,000
19,000
Units per batch
3,000
50
Shipping weight per unit
0.50
lbs.
4
lbs.
The company incurs $1,266,549 in overhead per year and has
traditionally applied overhead on the basis of direct labor hours.
Your answer is incorrect. Try again.
(i)
How much overhead will be allocated
to each product using the traditional direct...
Activity-based job-costing system. Henriksen AS manufactures and sells packaging machines. It recently used an activity-based approach...
Activity-based job-costing system. Henriksen AS manufactures and sells packaging machines. It recently used an activity-based approach to refine the job-costing system at its Vejle plant. The resulting job-costing system has one direct-cost category (direct materials) and four indirect manufacturing cost pools. These four indirect- cost pools and their allocation bases were chosen by a team of product designers, manufacturing personnel and marketing personnel: Cost-allocation base Indirect manufacturing cost pool Budgeted cost- allocation rate 1. Materials handling 2. Machining 3. Assembly...
Problem 1: Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Manufacturing overhead is currently assigned to the products on the basis of direct labor hours. The company has gathered some activity information and is interested in the differences between its present costing method and activity-based costing. All overhead...
Written please
Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Activity Pool Overhead Costs Total Driver Usage Setup $768,000 9,600 setups Materials purchasing $330.000 8.250 purchase orders Machining/fabricating $408,000 81,600 machine hours Total overhead costs $1,506,000 Standing Desks Portable Desks Number of Units Produced 120,000 30,000 Direct materials...
Activity-Based Costing Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities-production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities: Activity Activity Cost Production setup Procurement $ 58,500 136,500 182,000 200,000 Activity Base Number of setups Number of purchase orders (PO) Number of inspections Number of components Quality control Materials management Total $577,000 The activity-base...
Vaughn is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 FM-9 18,000 3,120 16,000 28,000 4,000 80 0.50 lbs. 4 lbs. The company incurs $1,312,438 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per...
Vaughn is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 FM-9 18,000 3,120 16,000 28,000 4,000 80 0.50 lbs. 4 lbs. The company incurs $1,312,438 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per...
Problem 7-21 Crane is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 FM-9 18,000 3,600 24,000 19,000 4,000 90 0.50 lbs. 4 lbs. The company incurs $1,412,655 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base?...
Marigold is an electronics components manufacturer. Information
about the company’s two products follows:
AM-2
FM-9
Units produced
15,900
2,000
Direct labor hours required for production
21,000
19,000
Units per batch
3,000
50
Shipping weight per unit
0.50
lbs.
4
lbs.
The company incurs $1,266,549 in overhead per year and has
traditionally applied overhead on the basis of direct labor hours.
Your answer is incorrect. Try again.
(i)
How much overhead will be allocated
to each product using the traditional direct...
Activity-based job-costing system. Henriksen AS manufactures and sells packaging machines. It recently used an activity-based approach to refine the job-costing system at its Vejle plant. The resulting job-costing system has one direct-cost category (direct materials) and four indirect manufacturing cost pools. These four indirect- cost pools and their allocation bases were chosen by a team of product designers, manufacturing personnel and marketing personnel: Cost-allocation base Indirect manufacturing cost pool Budgeted cost- allocation rate 1. Materials handling 2. Machining 3. Assembly...
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