1.
B300 | T500 | Total | |
Sales Revenue | $ 1,204,000 | $ 512,000 | $ 1,716,000 |
Costs | |||
Direct Material | $ 401,000 | $ 162,300 | $ 563,300 |
Direct Labor | $ 120,100 | $ 42,600 | $ 162,700 |
Overhead | $ 359,168 | $ 127,398 | $ 486,566 |
Total Cost | $ 880,268 | $ 332,298 | $ 1,212,566 |
Product Margin | $ 323,732 | $ 179,702 | $ 503,434 |
Units | $ 60,200 | $ 12,800 | |
Product Margin per unit | $ 5.38 | $ 14.04 |
2.
Activity | Cost | Cost Driver | Cost per Cost driver | |
Machining | $ 199,906 | 152600 | Machine hours | $ 1.31 |
Setups | $ 125,560 | 292 | Setups | $ 430.00 |
Product Sustaining | $ 100,200 | 2 | Products | $ 50,100.00 |
Total | $ 425,666 | |||
B300 | T500 | Total | ||
Sales Revenue | $ 1,204,000 | $ 512,000 | $ 1,716,000 | |
Costs | ||||
Direct Material | $ 401,000 | $ 162,300 | $ 563,300 | |
Direct Labor | $ 120,100 | $ 42,600 | $ 162,700 | |
Advertising | $ 53,000 | $ 106,000 | $ 159,000 | |
Overhead | ||||
Machining | $ 118,555 | $ 81,351 | $ 199,906 | |
Setups | $ 30,960 | $ 94,600 | $ 125,560 | |
Product Sustaining | $ 50,100 | $ 50,100 | $ 100,200 | |
Total Cost | $ 773,715 | $ 536,951 | $ 1,310,666 | |
Product Margin | $ 430,285 | $ -24,951 | $ 405,334 | |
Units | $ 60,200 | $ 12,800 | ||
Product Margin per unit | $ 7.15 | $ -1.95 |
3.
B300 | T500 | Total | |||
Traditional Cost System | |||||
Direct Material | $ 401,000 | 71.19% | $ 162,300 | 28.81% | $ 563,300 |
Direct Labor | $ 120,100 | 73.82% | $ 42,600 | 26.18% | $ 162,700 |
Overhead | $ 359,168 | 73.82% | $ 127,398 | 26.18% | $ 486,566 |
Total Cost assigned to Products | $ 880,268 | $ 332,298 | $ 1,212,566 | ||
Selling and administrative expense | $ 560,000 | ||||
Total Cost | $ 1,772,566 | ||||
ABC | |||||
Direct Costs | |||||
Direct Material | $ 401,000 | 71.19% | $ 162,300 | 28.81% | $ 563,300 |
Direct Labor | $ 120,100 | 73.82% | $ 42,600 | 26.18% | $ 162,700 |
Advertising | $ 53,000 | 33.33% | $ 106,000 | 66.67% | $ 159,000 |
Indirect Costs | |||||
Machining | $ 118,555 | 59.31% | $ 81,351 | 40.69% | $ 199,906 |
Setups | $ 30,960 | 24.66% | $ 94,600 | 75.34% | $ 125,560 |
Product Sustaining | $ 50,100 | 50.00% | $ 50,100 | 50.00% | $ 100,200 |
Total Cost assigned to Products | $ 773,715 | $ 536,951 | $ 1,310,666 | ||
Costs not assigned to products | |||||
Selling and administrative expense | $ 401,000 | ||||
Other | $ 60,900 | ||||
Total Cost | $ 1,772,566 |
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, L07-3, LO7-4, LO7-5) Hi-Tek Manufacturing, Inc., makes...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5) 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 $ 1,697,400 Cost of goods sold 1,230,193 Gross margin 467,207 Selling and administrative expenses 640,000 net operating loss $ (172,793) Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] 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 1,749,600 1,233,208 516,392 590,000 (73,608) Cost of goods sold Gross margin Selling and administrative expenses Net operating loss Hi-Tek produced and sold 60,100 units of B300 at a price of $21 per unit and 12,500 units...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins (L07-1, LO7-3, L07-4, LO7-5) 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 1,697,300 1,247,560 449,740 590,000 (140.260) Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,700...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] 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 $ 1,708,000 Cost of goods sold 1,228,693 Gross margin 479,307 Selling and administrative expenses 550,000 Net operating loss $ (70,693 ) Hi-Tek produced and sold 60,000 units of B300 at a price of $20 per unit...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) 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 $1,709, 200 Cost of goods sold 1,233,722 Gross margin 475,478 Selling and administrative expenses 650,000 Net operating loss $ (174,522) Hi-Tek produced and sold 60.500 units of B300 at a price of $20 per unit and...
1 Problem 7-16 Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) 5 points 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: eBook Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $1,714,000 1,244,230 469, 770 550,000 $ (80,230) Print References Hi-Tek produced and sold 60,300 units of B300 at a...
1 Problem 7-16 Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) 5 points 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: eBook Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $1,714,000 1,244,230 469, 770 550,000 $ (80,230) Print References Hi-Tek produced and sold 60,300 units of B300 at a...
Chapter Seven Problems (10 pts) Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, L07-4, LO7-5) Hi-Tek Manufacturing, Inc., makes two types of industrial component parts--the 8300 and the 1500. 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 less 1,716,000 1,212,566 5e3, 434 560.000 (56,566) $ Hi-Tek produced and sold 60,200 units of B300 at a...
Thanks for your help and time!!! Problem 7-16 Comparing Traditional and Activity-Based Product Margins (L07-1, LO7-3, L07-4, L07-5) 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-Tel Manufacturint Inc. Income Statement Cost of goods sold GIOS margin Selling and administrative expenses Net operating loss $ 1,695,500 1,214,024 181,476 580,000 Hi-Tek produced and sold 60,400 units of B300 at a price of $20...
This is 3 parts of the same question!!! 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 $ 1,644,900 1,233,600 411,300 640,000 $ (228,700) Hi-Tek produced and sold 60,300 units of B300 at a price of $19 per unit and 12,800 units of T500...