Buyer, Inc. uses activity based costing with two categories of overhead: maintenance and inspections. Overhead rates...
Buyer, Inc. uses activity based costing with two categories of overhead: maintenance and inspections. Overhead rates for the coming year are as follows:
| Activity | Cost Driver | Activity Overhead Rate |
| Maintenance | Machine Hours | $32/MH |
| Inspection | Number of Inspections | $500/inspection |
Use the following data to estimate the total product cost of the potential job:
|
Direct materials |
$6,000 |
|
Direct labor |
$16,000 |
|
Machine-hours |
400 |
|
Number of inspections |
4 |
|
Direct labor-hours |
800 |
Homework Answers
Total overhead would be:
Maintenance=($32*400)=$12800
Inspection=($500*4)=$2000
Total=(12800+2000)=14800
Hence total product cost=Direct materials+Direct labor+Total overhead
=(6000+16000+14800)
=$36800.
Add Answer to:
Buyer, Inc. uses activity based costing with two categories of
overhead: maintenance and inspections. Overhead rates...
. Graham Company has two categories of overhead: maintenance and inspection. Costs expected for these categories...
. Graham Company has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance Inspection $900,000 1,500,000 The plant currently applies overhead using direct labor hours and expected capacity of 100,000 direct labor hours. The following data has been assembled for use in developing a bid for a proposed job. Additionally, the total expected machine hours for all jobs during the year are 100,000, and the total expected number of...
XYZ Company has two categories of overhead: maintenance and inspection. Costs expected for these categories for...
XYZ Company has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance $420,000 Inspection $600,000 The plant currently applies overhead using direct labor hours and expected capacity of 100,000 direct labor hours. The following data has been assembled for use in developing a bid for a proposed job. Bid prices are equal to the full manufacturing cost plus a 30 percent markup. Direct materials $3,500 Direct labor $6,500 Machine...
The Molotov plant of Kaboom Industries has two categories of overhead: maintenance and inspection. Costs expected...
The Molotov plant of Kaboom Industries has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance $50,000 Inspection $97,000 Machine Hours 49,000 hrs The plant currently applies overhead using machine hours. The following data have been assembled for use in developing a bid for a proposed job: Direct materials $500 Direct labor $2,000 Machine hours 500 Number of inspections 4 Direct labor hours 800 Using machine hours to assign...
The Lislevand plant has two categories of overhead: maintenance and inspection. Costs expected for these categories...
The Lislevand plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance $121645 Inspection $184402 The plant’s expected capacity is 88283 direct labour hours. The following data has been assembled for use in developing a bid for a proposed job. Direct materials $? Direct labour $5650 Machine hours 410 Number of inspections 9 Direct labour hours 749 Total expected machine hours for all jobs during the year is...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following activities and costs: Setup (1,000 setup hours) $118,000 Production scheduling (400 batches) 60,000 Production engineering (60 change orders) 150,000 Supervision (2,000 direct labor hours) 46,000 Machine maintenance (12,000 machine hours) 60,000 Total activity costs $434,000 The following additional data were provided for Job 845: Direct materials costs $7,000 Direct labor cost (5 Milling direct labor hours;35 Finishing direct labor hours) $1,000 Setup hours 5...
our categories of overhead. The expected overhead costs for each category for Maintenance Materials handing 26....
our categories of overhead. The expected overhead costs for each category for Maintenance Materials handing 26. Stanford Corporation has f next year are as follows: $210,000 90,000 75,000 150,000 Setups Inspection The company has been asked to submit a bid for a proposed job. The plant manacer mbanufacturing this job would result in new business in future years. Bids are usually based upon full manufacturing cost plus 30 percent. Estimates for the proposed job are as follows: Direct materials Direct...
Summer Manufacturing has four categories of overhead. The four categories and expected overhead costs for each...
Summer Manufacturing has four categories of overhead. The four categories and expected overhead costs for each category for next year are listed as follows: Maintenance $255,000 Materials handling 125,000 Setups 30,000 Inspection 105,000 Currently, overhead is applied using a predetermined overhead rate based upon budgeted direct labor hours. 100,000 direct labor hours are budgeted for next year. The company has been asked to submit a bid for a proposed job. The plant manager feels that obtaining this job would result...
Ponder Ltd. has two categories of overhead: Maintenance and Shipping. Expected costs and activity levels for...
Ponder Ltd. has two categories of overhead: Maintenance and Shipping. Expected costs and activity levels for these categories for 20x2 are as follows: Maintenance $375870 24088 machine hours Shipping $722452 1908 shipments In developing a bid for a proposed job, Ponder has assembled the following data: Direct materials $2748 Direct labour (at $7/hour) $12185 Machine hours 6268 Number of shipments 9 Using activity-based costing and the appropriate cost drivers, what is the total cost of the potential job? Select one:...
7. Ryan Corporation has provided the following data from its activity-based costing system: Activity Cost Pool...
7. Ryan Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly..... $698,950 35,000 machine-hours Processing orders ....... $85,101 1,900 orders Inspection ......... $107,440 1,580 inspection-hours Data concerning the company's product P58Z appear below: Annual unit production and sales...... 400 Annual machine-hours...... 1,000 Annual number of orders. 90 Annual inspection hours.......... 30 Direct materials cost ........ $34.78 per unit Direct labor cost... $23.52 per unit According to the activity-based costing system,...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company consisted of the following...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company consisted of the following activities and costs: Setup (1,000 setup hours) $ 146,000 Production scheduling (400 batches) 60,000 Production engineering (60 change orders) 90,000 Supervision (2,000 direct labor hours) 56,000 Machine maintenance (12,000 machine hours) 96,000 Total activity costs $ 448,000 The following additional data were provided for Job 845: Direct material costs $ 8,000 Direct labor cost (5 Milling direct labor hours; 35 Finishing direct labor hours)...
. Graham Company has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance Inspection $900,000 1,500,000 The plant currently applies overhead using direct labor hours and expected capacity of 100,000 direct labor hours. The following data has been assembled for use in developing a bid for a proposed job. Additionally, the total expected machine hours for all jobs during the year are 100,000, and the total expected number of...
our categories of overhead. The expected overhead costs for each category for Maintenance Materials handing 26. Stanford Corporation has f next year are as follows: $210,000 90,000 75,000 150,000 Setups Inspection The company has been asked to submit a bid for a proposed job. The plant manacer mbanufacturing this job would result in new business in future years. Bids are usually based upon full manufacturing cost plus 30 percent. Estimates for the proposed job are as follows: Direct materials Direct...
7. Ryan Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly..... $698,950 35,000 machine-hours Processing orders ....... $85,101 1,900 orders Inspection ......... $107,440 1,580 inspection-hours Data concerning the company's product P58Z appear below: Annual unit production and sales...... 400 Annual machine-hours...... 1,000 Annual number of orders. 90 Annual inspection hours.......... 30 Direct materials cost ........ $34.78 per unit Direct labor cost... $23.52 per unit According to the activity-based costing system,...
Most questions answered within 3 hours.
-
Q 1 Give a numerical example of non routine decision,
Determine the relevant costs for this...
asked 1 minute from now -
A car moving at 87 km/h has tires of 76 cm diameter. If the
vehicle comes...
asked 13 minutes ago -
Most of the galaxies in the universe are observed to be moving
away from Earth. Suppose...
asked 16 minutes ago -
Paired research designs, also sometimes referred to as repeated
measures designs, are associated with some common...
asked 15 minutes ago -
You working as a clinical engineer dealing with
autoclaves, xrays and life care machines, in what...
asked 18 minutes ago -
Explain in detail (not just enumerate) each of Koch’s
postulates to determine the etiology of a...
asked 30 minutes ago -
Assume ABC Company has asked you to not only prepare their 2017
year-end Balance Sheet but...
asked 28 minutes ago -
You have just had a new set of tires put on your car, and now
the...
asked 33 minutes ago -
Please answer ASAP 2) Choose a point at random from the unit
square [0, 1] ×...
asked 47 minutes ago -
Draw the Lewis structures and determine which of these
molecules has a central atom that unavoidably...
asked 48 minutes ago -
Do we typically carry antibodies against the RH antigen in our
blood plasma?
asked 50 minutes ago -
What are the differences between an antibiotic, a semisynthetic,
and a synthetic as types of antimicrobials?
asked 46 minutes ago