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Gitano Manufacturing | ||||||
Calculation of overhead rate on the basis of direct labor hours: | ||||||
Ans 1 | ||||||
Product A | Product B | Total | Note | |||
Units produced | 11,500.00 | 1,700.00 | A | |||
Direct Labor hours per unit | 0.18 | 0.25 | B | |||
Direct Labor hours | 2,070.00 | 425.00 | 2,495.00 | C=A*B | ||
Overhead cost | 229,540.00 | D | ||||
Overhead rate per hour | 92.00 | E=D/C | ||||
See C | See E | F=C*E | See A | G=F/A | ||
Overhead Assigned | Activity Driver | Plant wide OH rate | Total Overhead cost | Units produced | OH cost per unit | |
Product A | 2,070.00 | 92.00 | 190,440.00 | 11,500.00 | 16.56 | |
Product B | 425.00 | 92.00 | 39,100.00 | 1,700.00 | 23.00 | |
Direct Labor cost per unit | Product A | Product B | Note | |||
Direct Labor rate per hour | 26.00 | 26.00 | H | |||
Direct Labor rate per unit | 4.68 | 6.50 | I=H*B | |||
Product cost per unit | Product A | Product B | Note | |||
Direct Materials | 2.40 | 2.50 | ||||
Direct Labor | 4.68 | 6.50 | See I | |||
OH cost | 16.56 | 23.00 | See G | |||
Product cost per unit | 23.64 | 32.00 | J | |||
Ans 2 | Product A | Product B | Note | |||
Market Price | 29.88 | 60.00 | K | |||
Product cost per unit | 23.64 | 32.00 | See J | |||
Profit per unit | 6.24 | 28.00 | L=K-J | |||
Ans 3 | Product A | Product B | Note | |||
Number of parts required per unit | 12.00 | 3.00 | M | |||
Units produced | 11,500.00 | 1,700.00 | See A | |||
Number of parts required | 138,000.00 | 5,100.00 | N=*M | |||
O | P | Q | R=P+Q | S=O/R | ||
Calculation of activity based overhead rates | Cost Drivers used | |||||
Activity | Cost Driver | Overhead cost | Product A | Product B | Total | ABC Rates |
Machine set up | Number of setups | 102,940.00 | 11.00 | 18.00 | 29.00 | 3,549.66 |
Material Handling | Number of parts | 51,000.00 | 138,000.00 | 5,100.00 | 143,100.00 | 0.36 |
Quality control inspection | Inspection hours | 75,600.00 | 60.00 | 210.00 | 270.00 | 280.00 |
Total Activity Cost | 229,540.00 | |||||
Allocation Table | T | See S | U=T*S | |||
Overhead Assigned | Activity Driver | Activity rate | Total Overhead cost | |||
Product A | Number of setups | 11.00 | 3,549.66 | 39,046.21 | ||
Number of parts | 138,000.00 | 0.36 | 49,182.39 | |||
Inspection hours | 60.00 | 280.00 | 16,800.00 | |||
Total Cost | 105,028.60 | X | ||||
Units produced | 11,500.00 | See A | ||||
Overhead Cost per unit | 9.13 | Y=X/A | ||||
V | See S | W=V*S | ||||
Overhead Assigned | Activity Driver | Activity rate | Total Overhead cost | |||
Product B | Number of setups | 18.00 | 3,549.66 | 63,893.79 | ||
Number of parts | 5,100.00 | 0.36 | 1,817.61 | |||
Inspection hours | 210.00 | 280.00 | 58,800.00 | |||
Total Cost | 124,511.40 | Z | ||||
Units produced | 1,700.00 | See A | ||||
Overhead Cost per unit | 73.24 | AA=Z/A | ||||
Product cost per unit | Product A | Product B | Note | |||
Direct Materials | 2.40 | 2.50 | ||||
Direct Labor | 4.68 | 6.50 | See I | |||
OH cost | 9.13 | 73.24 | See Y, AA | |||
Product cost per unit | 16.21 | 82.24 | AB | |||
Product A | Product B | |||||
Market Price | 29.88 | 60.00 | See K | |||
Product cost per unit | 16.21 | 82.24 | See AB | |||
Profit per unit | 13.67 | (22.24) | AC= K-AB | |||
Exercise 17-10 Using ABC for strategic decisions LO P1, P3 Consider the following data for two...
Exercise 17-10 Using ABC for strategic decisions LO P1, P3 Consider the following data for two products of Gitano Manufacturing (Loss amounts should be indicated with a minus sign. Round "OH rate and cost per unit" answers to 2 decimal places.) Product Products Number of units produced 10,000 units 2,000 units Direct labor cost (e $24 per ) 0.20 DLH per unit 0.25 DLH per unit Direct materials cost $ 2 per unit $ 3 per unit Activity Machine setup...
Exercise 17-12 Using ABC for strategic decisions LO P1, P3 Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and "OH rate and cost per unit" answers to 2 decimal places.) Product A Products Number of units produced 12,000 units 1,200 units Direct labor cost (e $31 per DLH) 0.15 DLH per unit 0.24 DLH per unit Direct materials cost $ 1.70 per unit $ 2.50...
Please fix my mistakes
Exercise 17-10 Using ABC for strategic decisions LO P1, P3 Consider the following data for two products of Gitano Manufacturing (Loss amounts should be indicated with a minus sign. Round "OH rate and cost per unit" answers to 2 decimal places.) Product Products Sumber of units produced 10,000 units 2,000 units Direct labor cost (e $24 per DLH) 0.20 DLH per unit 0.25 DLH per unit Direct materials cost $ 2 per unit $ 3 per...
Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and "OH rate and cost per unit" answers to 2 decimal places) Number of units produced Direct labor cost (@ $24 per DLH) Direct materials cost Product A 11,500 units 0.20 DLH per unit $ 2.40 per unit Product B 1,500 units 0.27 DLH per unit $ 2.70 per unit Activity Machine setup Materials handling Quality control...
Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and "OH rate and cost per unit" answers to 2 decimal places.) Number of units produced Direct labor cost (@ $29 per DLH) Direct materials cost Product A 12,000 units 0.14 DLH per unit $ 1.80 per unit Product B 1,900 units 0.21 DLH per unit $ 2.30 per unit Activity Machine setup Materials handling Quality control...
Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round your Intermediate calculations and "OH rate and cost per unlt" answers to 2 decimal places.) Product A Number of units produced 12,500 units Direct labor cost (@ $24 per DLH) 0.20 DLH per unit Direct materials cost $ 1.50 per unit Product B 1,400 units 0.23 DLH per unit $ 2.30 per unit Mat ne serctivit Machine setup Materials handling...
HOW DO I CALCULATE?
Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and "OH rate and cost per unit" answers to 2 decimal places.) Number of units produced Direct labor cost (@ $28 per DLH) Direct materials cost Product A 11,000 units 0.12 DLH per unit $ 1.60 per unit Product B 1,100 units 0.28 DLH per unit $ 2.90 per unit Activity Machine setup...
4.2 Should this information influence company
strategy?
Yes
No
Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and "OH rate and cost per unit" answers to 2 decimal places) Product A Number of units produced 11,500 units Direct labor cost (@ $30 per DLH) 0.21 DLH per unit Direct materials cost $ 2.20 per unit Product B 1,300 units 0.25 DLH per unit $ 2.30...
Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and "OH rate and cost per unit" answers to 2 decimal places) Number of units produced Direct labor cost (@ $26 per DLH) Direct materials cost Product A 13,000 units 0.18 DLH per unit $ 2.40 per unit Product B 1,200 units 0.26 DLH per unit $ 2.70 per unit Activity Machine setup Materials handling Quality control...
Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and "OH rate and cost per unit" answers to 2 decimal places.) Number of units produced DIH) Direct labor cost (@ $31 per DLH) Direct materials cost Product A 13,500 units 0.14 DLH per unit $ 1.80 per unit Product B 1,300 units 0.28 DLH per unit $ 2.30 per unit Activity Machine setup Materials handling Quality...