Homework Answers
| Mercon | Wurcon | |||||||||
| 1) | Unit product cost under conventional system | 47 | 156 | (Note 1:) | ||||||
| 2) | Unit product cost under ABC system | 107 | 126 | (Note 3) | ||||||
| Note 1: | Calculation of Unit product cost | |||||||||
| Mercon | Wurcon | |||||||||
| Direct material | 12 | 9 | ||||||||
| Direct labour | 15 | 17 | ||||||||
| Manufacturing Overhead | 20 | 130 | (See Note 2) | |||||||
| Total Unit cost | 47 | 156 | ||||||||
| Note 2: | Calculation of predetermined overhead rate | = Total overhead / total labor hours | ||||||||
| =560000 / (2000*.5 + 4000*3.25) | ||||||||||
| 40.00 | Per Labour hour | |||||||||
| Overhead allocation usinf predetermined rate | ||||||||||
| Mercon | Wurcon | |||||||||
| Overhead rate | 40.00 | 40.00 | ||||||||
| No. of Hours | 1000 | 13000 | ||||||||
| Allocated Overhead | 40,000 | 520,000 | ||||||||
| No. of Units | 2000 | 4000 | ||||||||
| Overhead per unit | 20 | 130 | ||||||||
| Note 3: | Calculation of Unit product cost | |||||||||
| Mercon | Wurcon | |||||||||
| Direct material | 12 | 9 | ||||||||
| Direct labour | 15 | 17 | ||||||||
| Manufacturing Overhead | 80 | 100 | (See Note 4) | |||||||
| Total Unit cost | 107 | 126 | ||||||||
| Note 4: | ||||||||||
| Mercon | Wurcon | |||||||||
| Activity | Overhead Cost | Activity Driver | Activity RATE | Activity driver Incurred |
Overhead
assigned
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Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon $ 8.00 $ 13.00 0.40 4,000 Wurcon $ 6.00 $ 16.00 2.80 8,000 These products are customized to some degree for specific customers. Required: 1. The...
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon $ 8.00 $ 10.00 2.00 1,000 Wurcon $ 6.00 $ 11.00 7.00 2,000 These products are customized to some degree for specific customers. Required: 1. The...
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon $ 10.00 $ 3.00 0.20 10,000 Wurcon $ 8.00 $ 3.75 0.25 40,000 These products are customized to some degree for specific customers. Required: 1. The...
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon Wurcon $ 10.00 $ 8.00 $ 4.00 $ 5.00 0.20 3.90 5,000 10,000 These products are customized to some degree for specific customers. Required: 1. The...
kunkel company makes two products and uses a conventional costing
system
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon Wurcon $ 8.00 $ 6.00 $ 10.00 $ 11.00 2.00 7.00 1,000 2,000 These products...
Kunkel Company makes
two products and uses a conventional costing system in which a
single plantwide predetermined overhead rate is computed based on
direct labor-hours. Data for the two products for the upcoming year
follow:
Mercon
Wurcon
Direct materials
cost per unit
$
10.00
$
8.00
Direct labor
cost per unit
$
3.00
$
3.75
Direct
labor-hours per unit
0.20
0.25
Number of units
produced
10,000
40,000
These products are
customized to some degree for specific customers.
Required:
1. The...
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Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon Wurcon $ 14.00 $ 11.00 $ 10.00 $ 13.00 1.00 12.50 1.000 2.000 These products are customized to some degree for...