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Gigabyte, Inc. manufactures three products for the computer
industry:
Gismos (product G): annual sales, 8,000 units
Thingamajigs (product T ): annual sales, 15,000 units
Whatchamacallits (product W ): annual sales, 4,000 units
The company uses a traditional, volume-based product-costing
system with manufacturing overhead applied on the basis of
direct-labor dollars. The product costs have been computed as
follows:
Product G
Product T
Product W
Raw material
$
35.00
$
52.50
$
17.50
Direct labor
16.00
(.8 hr. at $20)
12.00...
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Gigabyte, Inc. manufactures three products for the computer
industry:
Gismos (product G): annual sales, 8,000 units
Thingamajigs (product T ): annual sales, 15,000 units
Whatchamacallits (product W ): annual sales, 4,000 units
The company uses a traditional, volume-based product-costing
system with manufacturing overhead applied on the basis of
direct-labor dollars. The product costs have been computed as
follows:
Product G
Product T
Product W
Raw material
$
35.00
$
52.50
$
17.50
Direct labor
16.00
(.8 hr. at $20)
12.00...
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1.
2.
3.
Gigabyte, Inc. manufactures three products for the computer Industry: Gismos (product G): annual sales, 8,000 units Thingamajigs (product T): annual sales. 15,000 units Whatchamacallits (product W): annual sales, 4,000 units The company uses a traditional, volume-based product-costing system with manufacturing overhead applied on the basis of direct- labor dollars. The product costs have been computed as follows: Hav material Direct labor Nanufacturing overhead. Total product cost Product G $ 35.00 16.00 (.8 hr. at $20) 140.00 $191.00...
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Activity based costing and management
Opsonin Inc manufactures three products for the pharmaceuticals industry . product P annual sales, 8000 units. product Q annual sales, 15 000 units. product R : annual sales, 4000 units. The company uses a traditional, volume-based product costing system with manufacturing overhead applied on the basis of direct labour dollars. The product costs have been calculated as follows: Product P Product Q Product R $52.50 12.00 (0.6 hr x $20) 105.00 ($12x875%) Raw material Direct...
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Olmo, Inc., manufactures and sells two products: Product K0 and
Product H9. The annual production and sales of Product of K0 is
1,100 units and of Product H9 is 1,100 units. The company has an
activity-based costing system with the following activity cost
pools, activity measures, and expected activity:
Activity Cost Pools
Activity Measures
Estimated Overhead Cost
Expected Activity
Product K0
Product H9
Total
Labor-related
DLHs
$
551,008
8,800
4,400
13,200
Production orders
orders
54,019
1,200
200
1,400
Order size...
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Adelberg Company has two products: A and B. The annual production and sales of Product A is 1,850 units and of Product B is 1,250 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours per unit. The total estimated overhead for next period is $ 100,500.The company is considering switching to an activity-based costing system for...
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Eastern Chemical Company produces three products. The operating results of the current year are: Product Sales Quantity 1.300.00 6,500.00 650.00 Target Price $ 299.00 302.60 207.50 Actual Price $291.00 260.60 315.00 $ 1.00 (42.00) $187.50 The firm sets the target price of each product at 150% of the product's total manufacturing cost. It appears that the firm was able to sell Product Cat a much higher price than the target price of the product and lost money on Product B....
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Adelberg Corporation makes two products: Product A and Product
B. Annual production and sales are 1,000 units of Product A and 750
units of Product B. The company has traditionally used direct
labor-hours as the basis for applying all manufacturing overhead to
products. Product A requires 0.5 direct labor-hours per unit and
Product B requires 0.4 direct labor-hours per unit. The total
estimated overhead for next period is $89,140. The company is
considering switching to an activity-based costing system for...
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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...
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Eastern Chemical Company produces three products. The operating results of the current year are: Product Sales Quantity 1.495.00 2.475.00 748.00 Target Price 305.00 317.60 222.50 Actual Price $306.00 275.60 330.00 Difference $ 1.00 42.00) $107.50 The firm sets the target price of each product at 150% of the product's total manufacturing cost. It appears that the firm was able to sell Product Cat a much higher price than the target price of the product and lost money on Product B....
Gigabyte, Inc. manufactures three products for the computer
industry:
Gismos (product G): annual sales, 8,000 units
Thingamajigs (product T ): annual sales, 15,000 units
Whatchamacallits (product W ): annual sales, 4,000 units
The company uses a traditional, volume-based product-costing
system with manufacturing overhead applied on the basis of
direct-labor dollars. The product costs have been computed as
follows:
Product G
Product T
Product W
Raw material
$
35.00
$
52.50
$
17.50
Direct labor
16.00
(.8 hr. at $20)
12.00...
Gigabyte, Inc. manufactures three products for the computer
industry:
Gismos (product G): annual sales, 8,000 units
Thingamajigs (product T ): annual sales, 15,000 units
Whatchamacallits (product W ): annual sales, 4,000 units
The company uses a traditional, volume-based product-costing
system with manufacturing overhead applied on the basis of
direct-labor dollars. The product costs have been computed as
follows:
Product G
Product T
Product W
Raw material
$
35.00
$
52.50
$
17.50
Direct labor
16.00
(.8 hr. at $20)
12.00...
1.
2.
3.
Gigabyte, Inc. manufactures three products for the computer Industry: Gismos (product G): annual sales, 8,000 units Thingamajigs (product T): annual sales. 15,000 units Whatchamacallits (product W): annual sales, 4,000 units The company uses a traditional, volume-based product-costing system with manufacturing overhead applied on the basis of direct- labor dollars. The product costs have been computed as follows: Hav material Direct labor Nanufacturing overhead. Total product cost Product G $ 35.00 16.00 (.8 hr. at $20) 140.00 $191.00...
Activity based costing and management
Opsonin Inc manufactures three products for the pharmaceuticals industry . product P annual sales, 8000 units. product Q annual sales, 15 000 units. product R : annual sales, 4000 units. The company uses a traditional, volume-based product costing system with manufacturing overhead applied on the basis of direct labour dollars. The product costs have been calculated as follows: Product P Product Q Product R $52.50 12.00 (0.6 hr x $20) 105.00 ($12x875%) Raw material Direct...
Eastern Chemical Company produces three products. The operating results of the current year are: Product Sales Quantity 1.300.00 6,500.00 650.00 Target Price $ 299.00 302.60 207.50 Actual Price $291.00 260.60 315.00 $ 1.00 (42.00) $187.50 The firm sets the target price of each product at 150% of the product's total manufacturing cost. It appears that the firm was able to sell Product Cat a much higher price than the target price of the product and lost money on Product B....
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...
Eastern Chemical Company produces three products. The operating results of the current year are: Product Sales Quantity 1.495.00 2.475.00 748.00 Target Price 305.00 317.60 222.50 Actual Price $306.00 275.60 330.00 Difference $ 1.00 42.00) $107.50 The firm sets the target price of each product at 150% of the product's total manufacturing cost. It appears that the firm was able to sell Product Cat a much higher price than the target price of the product and lost money on Product B....