Question

Ratios, Activity Rates, <xercise 5-49 Product-Costing Accuracy, Consumption Ratios, Activih Activity Costing ers: infantry and spe Tristar Manufacturing produces two types of battery-operated toy soldiers: infantru Forces. The soldiers are produced by using one continuous process. Four activities ha dentified: machining, setups, receiving, and packing. Resource drivers have been sign costs to each activity. The overhead activities, their costs, and the other related da. Collows: Packing Orders 1,600 Product Infantry Special forces Costs Machine Hours 20,000 20,000 $80,000 300 100 $24,000 Receiving Orders 900 100 $18,000 800 $30,000 Required: 1. Calculate the total overhead assigned to each product by using only machine hours to calculate a plantwide rate. 2. Calculate consumption ratios for each activity. (Round to two decimal places.) 3. Calculate a rate for each activity by using the associated driver. (Round to two decimal places.) 4. Assign the overhead costs to each product by using the activity rates computed in Requirement 3. 5 CONCEPTUAL CONNECTION Comment on the difference between the assiga Requirement 1 and the activity-based assignment.

Answer 1

Answear page 101 Given data machine howie Receiving olders. Parking olders product setups 90 1600 20.000 300 too 100 800 20,000 I special fdlces I costs $80,000 $24,000 $ 18,000 $ 30000 - Required by using only © Total overhead assigned te each product machine howis is shown as under 152,000 40.000 3.8 Total overhead 1 Tebal mashine hours plantwide rate -- infantojumi Special forces ☺ consumption ratios for each - under $16000 $ 76000 activity is calculated as Receiving packing Product Machine Has setups ordens olders 0.5 10.75 0.9 infantry Toi67 Special 0.5 0.25 0.1 0.33 louces

1 page-02 Rate for each cutivity by using the associated driver. Mashining fa per mashine_house set ups to per set up.. Receiving $18.pen. Receiting older 1 packing | $ 12.5 per parking sider overhead costs to each product by using rates computed in Requirement sis as the activity follows. Special boles infantry $40,000 Machining • 2 X 20,000 $220,000 $40,000 setups $ 60x 300 18000 $60x100 6000 Receiving $18X400 16200 $100x18 1800 packing $ 12.5 X1600 0000 $13,5 X 800 10000 Total $94200 Total = 457,800 o . The difference is due to variance in number of Set ups , Receiving orders and parking oders.