1. Unit product cost using conventional costing system | ||||||
Total Direct Labour Hours=Direct labour per unit X number of Unit produced | ||||||
Mercon | =1.4*1000= | 1400 | hours | |||
Wurcon | =6.8*2000= | 13600 | hours | |||
TOTAL | 15000 | hours | ||||
Apportionment of half overhead using ABC system | ||||||
Mercon= (Total overhead X Product Hours / Total Hours) | ||||||
= (450,000*1400/15000) | ||||||
=42000 | ||||||
Wurcon= (Total overhead X Product Hours / Total Hours) | ||||||
= (450,000*13600/15000) | ||||||
=408000 | ||||||
Overhead per unit = Total overhead Each product / number of unit produced | ||||||
Mercon | =42000/1000 = | 42 | ||||
Wurcon | =408000/2000 =204 | |||||
Unit product cost per unit | Mercon | Wurcon | ||||
Direct materials | 10.00 | 7.00 | ||||
Direct labor | 7.00 | 10.00 | ||||
Overhead | 42.00 | 204.00 | ||||
Total | 59.00 | 221.00 |
2. Unit product cost using ABC system | |||||||
Total Direct Labour Hours=Direct labour per unit X number of Unit produced | |||||||
Mercon | =1.4*1000= | 1400 | hours | ||||
Wurcon | =6.8*2000= | 13600 | hours | ||||
TOTAL | 15000 | hours | |||||
Apportionment of overhead using convention system | |||||||
Mercon= (Total overhead X Product Hours / Total Hours)/2 | |||||||
= (450,000*1400/15000)/2 | |||||||
=42000/2=21000 | |||||||
Wurcon= (Total overhead X Product Hours / Total Hours)/2 | |||||||
= (450,000*13600/15000)/2 | |||||||
=408000/2=204,000 | |||||||
Apportionment of half overhead bases of Engineering design time | |||||||
Mercon= (Total overhead X Product Design Hours / Total Hours)/2 | |||||||
= (450,000*2000/4000)/2 | |||||||
=225000/2=112500 | |||||||
Wurcon= (Total overhead X Product Design Hours / Total Hours)/2 | |||||||
= (450,000*2000/4000)/2 | |||||||
=225000/2=112500 | |||||||
Overhead per unit = Total overhead Each product / number of unit produced | |||||||
Mercon | =(21000+112500)/1000 =133.5 | ||||||
Wurcon | =(204000+112500)/2000 =158.25 | ||||||
Unit product cost per unit | Mercon | Wurcon | |||||
Direct materials | 10.00 | 7.00 | |||||
Direct labor | 7.00 | 10.00 | |||||
Overhead | 133.50 | 158.25 | |||||
Total | 150.50 | 175.25 |
Exercise 4-7 Contrast ABC and Conventional Product Costs (L04-2, L04-3, L04-4) Kunkel Company makes two products...
Exercise 4-7 Contrast ABC and Conventional Product Costs (L04-2, L04-3, L04-4] Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon $ 8.00 $ 13.00 0.40 4,000 Wurcon $ 6.00 $ 16.00 2.80 8,000 These products...
Exercise 4-7 Contrast ABC and Conventional Product Costs (L04-2, LO4-3, LO4-4) Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon $ 15.00 $ 5.00 @.50 2,000 Wurcon $12.00 $ 7.00 6.25 4,000 These products are...
Exercise 4-7 Contrast ABC and Conventional Product Costs (L04-2, LO4-3, LO4-4] Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: points Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon $ 10.00 $ 3.00 0.20 10,000 Wurcon $ 8.00 $ 3.75 0.25 40,oo eBook...
Exercise 4-7 Contrast ABC and Conventional Product Costs [LO4-2, LO4-3, LO4-4) Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: $ $ Vereon 10.00 10.00 0,30 5.000 Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Nanber of units produced $ $ Marcon 7.00 11.00 2.25 10.000 These products...
kunkel company makes two products and uses a conventional costing system Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon Wurcon $ 8.00 $ 6.00 $ 10.00 $ 11.00 2.00 7.00 1,000 2,000 These products...
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon $ 8.00 $ 10.00 2.00 1,000 Wurcon $ 6.00 $ 11.00 7.00 2,000 These products are customized to some degree for specific customers. Required: 1. The...
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon $ 12.00 $ 15.00 0.50 2,000 Wurcon $ 9.00 $ 17.00 3.25 4,000 These products are customized to some degree for specific customers. Required: 1. The...
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon $ 8.00 $ 13.00 0.40 4,000 Wurcon $ 6.00 $ 16.00 2.80 8,000 These products are customized to some degree for specific customers. Required: 1. The...
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon $ 10.00 $ 3.00 0.20 10,000 Wurcon $ 8.00 $ 3.75 0.25 40,000 These products are customized to some degree for specific customers. Required: 1. The...
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon Wurcon $ 10.00 $ 8.00 $ 4.00 $ 5.00 0.20 3.90 5,000 10,000 These products are customized to some degree for specific customers. Required: 1. The...