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Activity Based Product Costing Total Roberts Company produces two weed eaters: basic and advanced. The company has four activ
Calculator Required: 1. Calculate the four activity rates. Machining rate per machine hour Engineering rate per hour Receivin
Calculate the overhead cost per unit. Round your answers to the nearest cent. Overhead Cost Basic per unit Advanced per unit
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Answer #1
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Answer 1 A B C=A/B
Activity cost pool Activity Measure Cost Activity usage ABC rates
Machining Machine Hours      8,640,000.00         720,000.00                 12.00
Engineering Engineering Hours      1,230,000.00              3,000.00               410.00
Receiving Receiving Orders         324,000.00              1,200.00               270.00
Inspecting products Inspection Hours         351,000.00              2,700.00               130.00
Overhead Cost 10,545,000.00
Answer 2
Basic See C D E=C*D
Activity cost pool Activity Measure ABC Rates Activity used Cost assigned
Machining Machine Hours                   12.00         120,000.00    1,440,000.00
Engineering Engineering Hours                 410.00                 300.00       123,000.00
Receiving Receiving Orders                 270.00                 300.00         81,000.00
Inspecting products Inspection Hours                 130.00                 900.00       117,000.00
Overhead Cost assigned 1,761,000.00 F
Units produced       120,000.00 G
Overhead Cost per unit                 15.00 H=F/G
Advanced See C I J=C*I
Activity cost pool Activity Measure ABC Rates Activity used Cost assigned
Machining Machine Hours                   12.00         600,000.00    7,200,000.00
Engineering Engineering Hours                 410.00              2,700.00    1,107,000.00
Receiving Receiving Orders                 270.00                 900.00       243,000.00
Inspecting products Inspection Hours                 130.00              1,800.00       234,000.00
Overhead Cost assigned 8,784,000.00 K
Units produced       360,000.00 L
Overhead Cost per unit                 24.40 M=K/L
Answer 2 Basic Advanced Note
Prime costs              10,080,000.00    43,200,000.00
Overhead Cost assigned                 1,761,000.00      8,784,000.00 See F,K
Total cost              11,841,000.00 51,984,000.00 N
Units produced                    120,000.00         360,000.00 O
Unit cost                              98.68                 144.40 P=N/O
Answer 3 Basic Advanced Total Note
Prime costs              10,080,000.00    43,200,000.00 53,280,000.00 Q
Consumption ratio 18.92% 81.08% B R=Q/Sum of Q
Cost of Inspecting products                    351,000.00         351,000.00 S
Cost assignment                      66,405.41         284,594.59 T=R*S
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