Activity rate: | ||
Material handling costs | 1100 | =1100000/(600+400) |
Processing costs | 615 | =984000/(900+700) |
Overhead assigned: | Heater product | |
Material handling costs | 660000 | =600*1100 |
Processing costs | 553500 | =900*615 |
Overhead assigned | 1213500 | |
Option B $1213500 is correct |
Question 14 Younger, Inc. manufactures recliners for the hotel industry. It has two products, the Heater...
Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 1,100 units and of Product H9 is 1,100 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product K0 Product H9 Total Labor-related DLHs $ 551,008 8,800 4,400 13,200 Production orders orders 54,019 1,200 200 1,400 Order size...
Two parts to one question:
Part two:
Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $ 725,000 1,000,000 205,000 275,000 400,000 175,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Required: Compute the activity rate for each activity, assuming the...
Two-Stage ABC for Manufacturing Merlot Company has determined its activity cost pools and cost drivers to be the following: Cost Pools Setup Material handling Machine operation packing Total indirect manufacturing costs $112,000 25,600 480,000 60,000 $677,600 Cost drivers Setups Material moves Machine hours Packing orders 350 640 20,000 1,200 One product made by Merlot, metal casements, used the following activities during the period to produce 500 units: Setups Material moves 80 Machine hours 1,900 Packing orders 150 20 a. Calculate...
1.
2.
3.
Gigabyte, Inc. manufactures three products for the computer Industry: Gismos (product G): annual sales, 8,000 units Thingamajigs (product T): annual sales. 15,000 units Whatchamacallits (product W): annual sales, 4,000 units The company uses a traditional, volume-based product-costing system with manufacturing overhead applied on the basis of direct- labor dollars. The product costs have been computed as follows: Hav material Direct labor Nanufacturing overhead. Total product cost Product G $ 35.00 16.00 (.8 hr. at $20) 140.00 $191.00...
Two-Stage ABC for Manufacturing Meridian Company has determined its activity cost pools and cost drivers to be the following: Cost pools Setup $63.000 Material handling 25,600 Machine operation 220,000 Packing 90.000 Total indirect manufacturing costs $398,600 Cost drivers Setups 350 Material moves 640 Machine hours 20,000 Packing orders 1.200 One product made by Meridian, metal casements, used the following activities during the period to produce 500 units: Setups 20 Material moves Machine hours 1,900 Packing orders 150 (a) Calculate the...
Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic. Expected Costs $625,000 900,000 Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Activity 100,000 parts 1,500 batches 105,000 700 orders 175,000 500 invoices 300,000 40,000 square feet 75,000 2 models Assume that the following information is available for the company's two products for the first quarter of 2017. Basic Model...
Two-Stage ABC for Manufacturing Meridian Company has determined its activity cost pools and cost drivers to be the following: Cost pools Setup $35,000 Material handling 12,800 Machine operation 280,000 Packing 30,000 Total indirect manufacturing costs $357,800 Cost drivers Setups 350 Material moves 640 Machine hours 20,000 Packing orders 1,200 One product made by Meridian, metal casements, used the following activities during the period to produce 500 units: Setups 20 Material moves 80 Machine hours 1,900 Packing orders 150 (a) Calculate...
Gigabyte, Inc. manufactures three products for the computer industry: Gismos (product G): annual sales, 8,000 units Thingamajigs (product T): annual sales, 15,000 units Whatchamacallits (product W): annual sales, 4,000 units The company uses a traditional, volume-based product-costing system with manufacturing overhead applied on the basis of direct- labor dollars. The product costs have been computed as follows: Raw material Direct labor Manufacturing overhead* Total product cost Product G $ 35.00 16.00 (.8 hr. at $20) 140.00 $191.00 Product T $...
Strama, Inc., manufactures and sells two products: Product A6 and Product I5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product A6 Product I5 Total Labor-related DLHs $ 189,138 8,000 2,600 10,600 Production orders orders 43,624 800 1,000 1,800 Order size MHs 181,147 5,400 5,500 10,900 $ 413,909 The activity rate for the Order Size activity cost pool under activity-based...
:(
Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. DLH per Product Total Direct Labor Hours Overhead $247,100 Painting Dept. Finishing Dept. 84,700 10,600 10,900 21,500 Totals $331,800 Calculate the plantwide factory overhead rate for Adirondack Marketing Inc. a. $7.77 per dih b. $15.43 per dih c. $23.31 per dih...