Module 04: Critical Thinking Assignment
CRITICAL THINKING ASSIGNMENT (100 points):
Complete the following questions using Microsoft Excel. No other submission format is allowed. Review the grading rubric to confirm you are meeting the assignment requirements.
Consider the following information for Hamburg Corporation:
Units |
|
Beginning inventory |
80,000 |
Units started during the year |
150,000 |
Ending inventory |
62,000 |
Inventory is 100% complete as to materials and 60% complete as to conversion.
Materials |
Conversion |
|
Beginning costs (SAR) |
420,000 |
687,000 |
Costs added during the period (SAR) |
1,250,000 |
983,000 |
Using the WEIGHTED AVERAGE method:
Mannheim Corporation manufactures small camping tents and family camping tents. Estimated direct labor time to produce each type of tent is as follows:
Small |
Family |
|
Estimated tents produced |
25,000 |
10,000 |
Direct labor hours per tent |
2 |
5 |
Estimated overhead for the period = 1,200,000 SAR.
The controller is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the family tent product line because of its complexity. He therefore developed the following three activity cost pools and related cost drivers to better understand the costs.
Activity Cost Pools |
Expected Use of Cost Drivers |
Estimated Overhead Costs (SAR) |
Setting up machines |
1,000 setups |
220,000 |
Assembling |
90,000 labor hours |
990,000 |
Inspection |
1,200 inspections |
240,000 |
Expected Use of Cost Drivers per Product |
||
Small |
Family |
|
Number of setups |
150 |
850 |
Direct labor hours |
30,000 |
60,000 |
Number of inspections |
100 |
1,100 |
You must show your work for credit.
Module 04: Critical Thinking Assignment CRITICAL THINKING ASSIGNMENT (100 points): Complete the following questions using Microsoft...
Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information. Estimated Use of Cost Drivers per Product Car Truck Number of setups Direct labor hours 200 40,000 100 800 27,000 1.100 Number of inspections Car Wheels Truck Wheels Setting up machines $ Assembling Inspection Total cost assigned Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to...
please solve in excel/table format. thank you.
E17.4 Altex Inc, manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Hermann. has developed the following information. Car 40,000 Truck 10,000 Estimated wheels produced Direct labor hours per wheel Total estimated overhead costs for the two product lines are $770,000. Instructions (a) Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor...
E17.4 (LU 1, 2) Altex Inc. manufactures two products: car wheels and truck wheels. lo determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Assign overhead using traditional costing and ABC. Excel Car Truck Estimated wheels produced 40,000 10,000 Direct labor hours per wheel Total estimated overhead costs for the two product lines are $770,000. Instructions a. Compute the overhead cost assigned to the car wheels and truck wheels,...
Question 5 --/1 View Policies Current Attempt in Progress Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Car Truck Estimated wheels produced Direct labor hours per wheel 40,000 10,000 1 3 Total estimated overhead costs for the two product lines are $742,000. Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rate $ per...
Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Car Truck Estimated wheels produced Direct labor hours per wheel 39,000 11,000 1 3 Total estimated overhead costs for the two product lines are $835,200. ✓ Your answer is correct. Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rate $ 11.60 per direct labor hour...
Question 11 EcoFabrics has budgeted overhead costs of $1,096,200. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 522,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated...
20,000 assign to each product line, the two products: car wheals and truck wheels. To determine theamr controller, Robert Hermann, has developed the follown Estimated wheels produced Direct labor hours per wheel Car 40,000 Truck 10,000 3 Total estimate d overhead costs for the two product lines are $770,000. Instructions (a) Compute the overhead cost assigned to the car wheels and truck wheels, a assuming that direct labor hours he believes that most is used to allocate overhead costs. (b)...
Exercise 17-4 Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the information controller, Robert Hermann, has developed the following Car Truck Estimated wheels produced Direct labor hours per wheel 35,500 15,000 Total estimated overhead costs for the two product lines are $825,000 Calculate overhead rate. (Round answer to 2 decimal places, e-g. 12.25.) Overhead rate per direct labor hour Compute the overhead cost assigned to the...
Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,480, and a new model, the Majestic, which sells for $1,320. The production cost computed per unit under traditional costing for each model in 2020 was as follows. Traditional Costing Royale Majestic Direct materials $660 $420 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($40 per DLH) 240 200 Total per unit cost $1,020 $720 In 2020, Schultz manufactured 25,000 units of the Royale and 10,000...
Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 65000 500 orders Machine Setup Setups 247500 450 setups Machining Machine hours 1362500 125000 MH Assembly Parts 1090000 1000000 parts Inspection Inspections 245000 500 inspections If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is a. $8. b. $30....