Solution 2:
Allocation of overhead and computation of overhead cost per unit | ||||||||
Activity | Estimated Overhead Cost | Activity Base | Usage of Activity Base | Activity Rate | Rims | Posts | ||
Usage | Allocated Costs | Usage | Allocated Costs | |||||
Machine setups | $39,560.00 | Nos of setups | 200 | $197.80 | 80 | $15,824 | 120 | $23,736 |
Special Processing | $140,180.00 | Machine hours | 2000 | $70.09 | 2000 | $140,180 | 0 | $0 |
General factory | $532,000.00 | Direct labor hours | 38000 | $14.00 | 3000 | $42,000 | 35000 | $490,000 |
Total | $711,740.00 | $198,004 | $513,736 | |||||
Nos of units | 19000 | 86000 | ||||||
Overhead cost per unit | $10.42 | $5.97 |
Computation of unit cost of each product - Activity Based costing | ||
Particulars | Rims | Posts |
Direct material | $13.00 | $9.00 |
Direct labor | $12.00 | $9.00 |
Manufacturing overhead | $10.42 | $5.97 |
Unit Product Cost | $35.42 | $23.97 |
Direct Labor-Hours per unit 0.80 0.60 Rims Posts Annual Production 19,000 units 86,000 units Additional Information...
Direct Labor-Hours per unit 0.30 0.50 Annual Production 27,000 units 75,000 units Rims Posts Additional information about the company follows: a. Rims require $12 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $20 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool Machine setups Special processing General factory Posts 50...
Annual per unit Production 0.80 29,000 units 0.80 Rims 73,000 units Posts Additional information about the company follows: a. Rims require $20 in direct materials per unit, and Posts require $18. b. The direct labor wage rate is $16 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Estimated Activity Estimated Overhead Activity Cost Pool Activity Measure Cost Rims Posts Total Number of...
Amazon Korie Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.80 29,000 units Posts 0.80 73,000 units Additional information about the company follows: Rims require $20 in direct materials per unit, and Posts require $18. The direct labor wage rate is $16 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools:...
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.70 20,000 units Posts 0.60 84,000 units Additional information about the company follows: Rims require $16 in direct materials per unit, and Posts require $12. The direct labor wage rate is $15 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools:...
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.40 20,000 units Posts 0.20 80,000 units Additional information about the company follows: Rims require $17 in direct materials per unit, and Posts require $10. The direct labor wage rate is $16 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools:...
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.70 26,000 units Posts 0.70 90,000 units Additional information about the company follows: Rims require $14 in direct materials per unit, and Posts require $10. The direct labor wage rate is $18 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools:...
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.30 21,000 units Posts 0.50 74,000 units Additional information about the company follows: Rims require $15 in direct materials per unit, and Posts require $12. The direct labor wage rate is $16 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools:...
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit 0.20 0.70 Annual Production 21,000 units 79,000 units Rims Posts Additional information about the company follows: a. Rims require $19 in direct materials per unit, and Posts require $15. b. The direct labor wage rate is $15 per hour. C. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following...
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.40 18,000 units Posts 0.80 76,000 units Additional information about the company follows: Rims require $10 in direct materials per unit, and Posts require $7. The direct labor wage rate is $17 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools:...
Performance Products Corporation makes two products, Titanium Rims and Posts. Data regarding the two products is provided in the following table: Direct Labor Hours per Unit Annual Production Rims 0.40 20,000 units Posts 0.20 80,000 units Additional information about the company follows: a. Rims require $17.00 in direct materials per unit, and Posts require $10.00. b. The direct labor wage rate is $16.00 per hour. c. Rims are more complex to manufacture than Posts, and they require special equipment. d....