(1) Manufacturing cost per unit :-
Standard |
Enhanced |
|
Manufacturing cost per unit |
$157 |
$216 |
Applied Overhead Rate/unit = Budgeted Overhead ÷ Budgeted Direct Labor Hours
Budgeted Overhead: $800,000
Budgeted Direct Labor Hours: (3,000 x 3/hour) + (4,000 x 4/hour) = 25,000
Applied Overhead Rate/unit = 800,000 ÷ 25,000 = $32/direct labor hour
Standard Enhanced
Direct Materials $ 25 $ 40
Direct Labor 36 (3x12) 48 (4x12)
Overhead 96 (3x32) 128 (4x32)
Unit Mfg Cost $157 $216
(2) Manufacturing cost per unit :-
Standard |
Enhanced |
|
Manufacturing cost per unit |
$181 |
$198 |
Activity |
Cost |
Cost Driver |
Application Rate |
Order processing |
$150,000 |
500 Orders Proc |
$300/Order Proc |
Machine processing |
560,000 |
40,000 MH |
14/MH |
Product inspection |
90,000 |
10,000 Insp. Hr |
9/Insp Hr |
Standard |
Enhanced |
|
Order processing |
$90,000 (300 x $300) |
$60,000 (200 x $300) |
Machine processing |
252,000 (18,000 x $14) |
308,000 (22,000 x $14) |
Product inspection |
18,000 (2,000 x $9) |
72,000 (8,000 x $9) |
Total |
$360,000 |
$440,000 |
# of units |
÷ 3,000 |
÷ 4,000 |
OH cost per unit |
$120 |
$110 |
Standard Enhanced
Direct Materials $25 $40
Direct Labor 36 (3 x 12) 48 (4x12)
Mfg Overhead 120 110
Total Cost/Unit under ABC $181 $198
(3a)
Standard |
$24 |
Undercosted |
Enhanced |
$18 |
Overcosted |
Standard Enhanced
Cost/unit using direct labor hours $157 $216
Cost/unit using ABC 181 198
(undercosted)/overcosted $( 24) $ 18
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. 5 points Standard: Estimated production volume, 3.000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour eBook Enhanced: Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit. 4 hours...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. 5 points Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour eBook Enhanced Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit, 4 hours...
Ontario, Inc, manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour Enhanced Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit 4 hours at $12 per...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour Enhanced: Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit, 4 hours at $12 per...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies Overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. points Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour eBook Enhanced: Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit, 4 hours at...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour Enhanced Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit 4 hours at $12 per...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company’s products follows. Standard: Est. production volume, 3000 units Direct-material cost, $25 per Unit Direct Labor per unit, 3 hrs at $12 per hr Enhanced: Est. production volume, 4000 units Direct material cost, $40 per Unit ...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company’s products follows. Standard: Est. production volume, 3000 units Direct-material cost, $25 per Unit Direct Labor per unit, 3 hrs at $12 per hr Enhanced: Est. production volume, 4000 units Direct material cost, $40 per Unit Direct Labor per unit,...
A. Assuming use of direct-labor hours to apply overhead to production, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. Manufacturing cost per unit: Standard $ ? and Enhanced $ ? B. Assuming use of activity-based costing, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. Manufacturing cost per unit: Standard $ ? and Enhanced $ ? C. By using direct-labor hours...
(25 marks) Nilam Sdn. Bhd. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. The anticipated overhead and direct labor time for the upcoming period is RM800,000 and RM25,000 hours respectively. The information about the company's products follows: Estimated production volume Direct material cost Direct labor per unit Standard 3,000 units RM 25 per unit 3 hours at RM12 per hour Enhanced 4,000 units RM 40 per unit 4 hours at RM12 per hour...