Solution
Cost per Unit | |
Product S | $ 38.10 |
Product W | $ 81.10 |
Working
Calculation of Activity rates | |||||
Activity Cost Pool | Activity driver | Overhead Cost (A) | Expected Activity (B) | Activity rate (A/B) | |
Machine setup required | Number of setup | $ 496,080 | 3120 | $ 159.00 | Per setup |
purchase order required | Number of order | $ 50,024 | 676 | $ 74.00 | Per order |
Machine hour required | Number of machine hour | $ 246,540 | 17610 | $ 14.00 | Per machine hour |
Maintenance requiest issued | Number of request | $ 206,136 | 1636 | $ 126.00 | Per request |
.
Cost assigned to Product S | |||
Activity name | Activity Rates | Activity | ABC Cost |
(A) | (B) | (A x B) | |
Machine setup required | $ 159.00 | 1,450.00 | $ 230,550 |
purchase order required | $ 74.00 | 540.00 | $ 39,960 |
Machine hour required | $ 14.00 | 7,090.00 | $ 99,260 |
Maintenance request issued | $ 126.00 | 695.00 | $ 87,570 |
Total Overheads assigned | $ 457,340.00 | ||
Production | 75,000.00 | ||
Overhead cost per unit | $ 6.10 |
.
Cost assigned to Product W | |||
Activity name | Activity Rates | Activity | ABC Cost |
(A) | (B) | (A x B) | |
Machine setup required | $ 159.00 | 1670 | $ 265,530 |
purchase order required | $ 74.00 | 136 | $ 10,064 |
Machine hour required | $ 14.00 | 10520 | $ 147,280 |
Maintenance request issued | $ 126.00 | 941 | $ 118,566 |
Total Overheads assigned | $ 541,440.00 | ||
Production | 15,000.00 | ||
Overhead cost per unit | $ 36.10 |
.
ABC Costing | ||
Product S | Product W | |
Direct material | $ 21.00 | $ 25.00 |
Direct labor | $ 11.00 | $ 20.00 |
Overheads | $ 6.10 | $ 36.10 |
Total Cost per unit | $ 38.10 | $ 81.10 |
Thanks for the help! EMD Corporation manufactures two products, Product S and Product W. Product W...
EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 2 hours of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to...
EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 2 hour of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to...
EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 2 hours of direct labor time per unit to manufacture compared to 1 hour of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to...
EMD Corporation manufactures two products, Product S and Product W. Product W is the more complex of the two products, requiring one hour of direct labor time per unit to manufacture compared to one-half hour of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $500,000 in manufacturing overhead costs and produce 10,000 units of Product...
Need help with req B asap EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 2 hour of direct labor time for Product S. Product W is produced on an automated production...
EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 2 hour of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to...
EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 2 hours of direct labor time per unit to manufacture compared to 1 hour of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to...
EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product Wis the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 2 hour of direct labor time for Product S. Product Wis produced on an automated production line. Overhead is currently assigned to the products...
EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 2 hours of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to...
EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product S. Product W is the more complex of the two products, requiring one hour of direct labour time per unit to manufacture, compared to a half-hour of direct labour time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to...