Question

AutoSave O ABC Project - Protected View Search File Home Insert Draw Page Layout Formulas Data Review Help PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. View Enable Editing B16 f 40000 G H J A B С E F 1 Quality Upholstery Company estimated the following costs and activities for its two products, stools and pads for 2018: 2 3 Cost Activity 4 Direct Materials $ 135,000 9,000 yards at $15 per yard 5 Direct Labor $ 102,000 5100 hours @ $20 per hour 6 Machine Setup $ 60,500 320 setup hours 7 Materials Handling $ 88.200 4200 loads of material moved 8 Electric Power $ 40,000 20000 kilowatt hours 9 10 Quality Upholstery applies overhead based on direct labor hours 11 The following information pertains to the actual production of stolls and pads: 12 13 Stools Pads 14 Units produced 5,000 20,000 15 Direct Materials $ 75,000 $ 61,200 16 Direct Labor $ 40,000 $ 60,000 17 Machine Setup $ 30.240 $ 26,460 18 Materials Handling $ 20,500 $ 61,500 19 Electric Power $ 35,000 $ 4,140 20 Actual Direct Labor Hours 2,000 3,000 21 Setup Hours 160 140 22 Loads of Materials Moved 1.000 3,000 23 Kilowatt hours consumed 17.000 2.000 24 25 Need to answer items A. through I. 26 27 A. What would be the POHR using direct labor hours 26 29 30 31 32 B.What would be the total cost of one stool using POHR? 33 34 35 36 37 38 39 C. What would be the total cost of one pad using POHR? 40 Sheet1 Type here to search 0 C

Answer 1

A. POHR = Total estimated overheads/Total estimated direct labor hours = ($60500 + $88200 + $40000)/5100 = $188700/5100 = $37 per direct labor hour.

B.

	Stool
Direct materials	75000
Direct labor	40000
Overheads (2000 x $37)	74000
Total cost $	189000
Number of units produced	5000
Total cost of one stool $	37.80

C.

	Pad
Direct materials	61200
Direct labor	60000
Overheads (3000 x $37)	111000
Total cost $	232200
Number of units produced	20000
Total cost of one pad $	11.61

D.

Activity	Cost $	Activity Driver Usage	Consumption Rate $
Machine setup	60500	320	189.0625	per setup hour
Materials handling	88200	4200	21	per load of material moved
Electric power	40000	20000	2	per kilowatt hour

Kindly round off the consumption rate as required since no instructions have been provided with the question regarding rounding off.

Per HOMEWORKLIB RULES the first 4 parts have been answered. Please post the remaining parts separately. Thank you.