1) Calulation of Indirect Cost Allocation
Allocation on the basis of Machine hrs as a single predtermined rate.
Commercial Containers Travel Packs
Machine Hrs 2240 500
Allocation rate $81.5 $81.5
Total Cost 182560 40750
Units produced 2800 50000
Indirect Cost/Unit 65.2 0.82
2) Computation of the Predetermined Allocation rate for each activity
Estimated Indirect Estimated Allocation Allocation Per Activity
Activity Activity Costs Allocation Base Rate
Material Handling 95000 19000 5 Kilos
Packaging 200000 5000 40 Machine Hrs
Quality Assurance 112500 1875 60 Samples
3) Computation of the activity based costs per unit of the commercial containers and travel packs
Commercial Containers Travel Packs
Amount Amount
Material handling at 5
per kilo 12600 63000 10000 50000
Packaging at 40 per
Machine Hr 2240 89600 500 20000
Quality Assurance at
60 samples 280 16800 750 45000
Total Indirect Costs 169400 115000
Unit Produced 2800 50000
Cost per unit 60.5 2.3
Estimated Estimated Quantity of Activity Indirect Costs Allocation Base Allocation Base Materials handling 95,000 Number of...
Willitte Pharmaceuticals manufacturers an over-the-counter allergy medication. The company sells both large commercial containers of 1,000 capsules to health care facilities and travel packs of 20 capsules to shops in airports, train stations, and hotels. The following information has been developed to determine if an activity-based costing system would be beneficial: (Click the icon to view the information.) Read the requirements Requirement 1. Willitte's original single plantwide overhead allocation rate costing system allocated Indirect costs to products at $81.50 per...
$P19-33A (similar to) Cuestion Hep Robert Phamaceuticals manufachurers an over the counter allergy medicalion. The company sells both large commercial containers of 1,000 capsules to health care facilities and travel packs of 20 capsules to shops in airports, train stations, and hotels. The following information has been developed to determine if an activity based costing system would be benelicial EE (Click the icon to view the information.) Read the requirements Data Table Requirement 1. Roberts orig Compute the total indirect...
Homework: Chapter 19 Homework Score: 0.18 of 1 pt P19-33A (similar to) • 2 of 5 (3 complete) HW Score: 28.06%, 1.4 of 5 Question Help Jacobson Pharmaceuticals manufacturers an over-the-counter allergy medication. The company sells both large commercial containers of 1,000 capsules to health care facilities and travel packs of 20 capsules to shops in airports, train station and hotels. The following information has been developed to determine if an activity-based costing system would be beneficial: (Click the icon...
Willitte Pharmaceuticals manufactures an over-the-counter allergy medication called Breathe. Willitte is trying to win market share from Sudafed and Tylenol. The company has developed several different Breathe products tailored to specific markets. For example, the company sells large commercial containers of 1,000 capsules to health-care facilities and travel packs of 20 capsules to shops in airports, train stations, and hotels. Willitte's controller, Sylvia Dufferin, has just returned from a conference on ABC. She asks Kevin Yackee, supervisor of the Breathe...
McNeil Pharmaceuticals manufactures an over-the-counter allergy medication called Breathe. McNeil is trying to win market share from Sudafed and Tylenol. The company has developed several different Breathe products tailored to specific markets. For example, the company sells large commercial containers of 1,000 capsules to health-care facilities and travel packs of 20 capsules to shops in airports, train stations, and hotels. McNeil's controller, Summer Donaldson, has just returned from a conference on ABC. She asks Kalin Yung, supervisor of the Breathe...
Managerial Accounting (ACG 2071E) Spring 2020 (1) kimberly adams & Save Homework: Chapter 19 HW Score: 0 of 1 pt 9 of 9 (8 complete) P19-33A (similar to) HW Score: 78.4%, 7.06 of 9 pts Question Help Gibson Pharmaceuticals manufacturers an over-the-counter allergy medication. The company sells both large commercial containers of 1,000 capsules to health care facilities and travel packs of 20 capsules to shops in airports, train stations, and hotels. The following information has been developed to determine...
gested S Score: 0 of 3 pts 3 of 3 (2 complete) HW Score: 62.22%, 5.6 of 9 p count P4-43A (similar to) Question Help Wallace Pharmaceuticals manufactures an over-the-counter allergy medication Wallace's controller, Susan Driessler, has just returned from a conference on ABC called Breathe. Wallace is trying to win market share from Sudafed and Tylenol. She asks Kevin Yeng, supervisor of the Breathe product line, to help her develop The company has developed several different Breathe products tailored...
Ch 24-2
Homework: Chapter 24 HomeWUIR Score: 0 of 18 pts P24-27A (similar to) Zol 210 complete HW Score: 0%, 0 of 38 Question Help Corbed Pharmaceuticals manufacturers an over the counter alergy medication The company ses botnlage commercial containers of 1000 capsules to health care faches and travel packs of 20 capsules lo shops in sports, translations and hotels The following information has been developed to determine if an activity-based costing system would be beneficial Head the tours Requirement...
Fletcher, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 2018 and their allocation bases are asfollows: Activity Total Budgeted Cost Allocation Base Materials handling $3,000 Number of parts Machine setup 3,000 Number of setups Insertion of parts 52,000 Number of parts Finishing 72,000 Finishing direct labor hours Total $130,000 Fletcher expects to produce 500 chrome...
compute the total activity based costs allocated to product a
and then compute the cost per unit for product a. finally compute
the total activity based costs allocated to product b then compute
the cost per unit for product b
Daly Corp. is considering the use of activity-based costing. The following information is provided for the production of two product lines: (Cick the icon to view the information.) Daily plans to produce 200 units of Product A and 250 units...