1) Total Cost under traditional costing
Direct material | 2500 |
Direct labor | 3500 |
Overhead (3500*50%) | 1750 |
Total Cost | 7750 |
2) Total Cost under ABC costing
Direct material | 2500 |
Direct labor | 3500 |
Setting up batches (20000/25*2) | 1600 |
Inspecting component (7500/5000*400) | 600 |
Providing utilities (10000/5000*600) | 1200 |
Total Cost | 9400 |
questions 2 and 3 SP 17 After reading an article about activity-based costing in a trade...
Check my After reading an article about activity-based costing in a trade journal for the furniture industry, Santana Rey wondered if it was time to critically analyze overhead costs at Business Solutions. In a recent month, Santana found that setup costs, inspection costs, and utility costs made up most of its overhead. Additional information about overhead follows. Activity Setting up machines Inspecting components Providing utilities Cost $20,000 $ 7,500 $10,000 Driver 25 batches 5,000 parts 5,000 machine hours Overhead has...
After reading an article about activity-based costing in a trade journal for the furniture industry, Santana Rey wondered if it was time to critically analyze overhead costs at Business Solutions. In a recent month, Santana found that setup costs, inspection costs, and utility costs made up most of its overhead. Additional information about overhead follows. Driver Cost Activity Setting up machinfes Inspecting components Providing utilities $21,600 $ 5,000 $10,000 27 batches 5,e00 parts 5,080 machine hours Overhead has been applied...
After reading an article about activity-based costing in a trade journal for the furniture industry, Santana Rey wondered if it was time to critically analyze overhead costs at Business Solutions. In a recent month, Santana found that setup costs, inspection costs, and utility costs made up most of its overhead. Additional information about overhead follows. Activity Setting up machines Inspecting components Providing utilities Cost $21,750 $5,300 $10,600 Driver 25 batches 5,300 parts 5,300 machine hours Overhead has been applied to...
After reading an article about activity-based costing in a trade journal for the furniture industry, Santana Rey wondered if it was time to critically analyze overhead costs at Business Solutions. In a recent month, Santana found that setup costs, inspection costs, and utility costs made up most of its overhead. Additional information about overhead follows. Activity Cost Driver Setting up machinfes $ 17,800 20 batches Inspecting components $ 4,900 4,900 parts Providing utilities $ 9,800 4,900 machine hours Overhead has...
What is the total cost of Job 615 if Business solutions applies overhead at 50% of direct labor cost? What is the total job of job 615 of business solution uses activity-based costing? SP 17 After reading an article about activity-based costing in a trade journal for the furniture industry, Santana Rey wondered if it was time to critically analyze overhead costs at Business Solutions. In a recent month, Santana found that setup costs, inspection costs, and utility costs made...
! Required information Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, C3 [The following information applies to the questions displayed below.] Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Indirect Labor $370,000 Indirect Materials other overhead $220,000 Production Activity Grinding Polishing Product modification Providing power System calibration 550,000 $245,000 530,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification...
Activity Based Costing Activity Based Costing Help Save & Exit Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Indirect Tabor $320,000 Indirect Materials Other Overhead Part 2 of 3 Production Activity Grinding Polishing Product modification Providing power System calibration $135,000 600,000 $255,000 500,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power Systen calibration 1,500 engineering hours 17,000 direct...
Fischer Company identified the following activities, costs, and activity drivers: Activity Expected Costs Expected Activity Handling parts $525,000 25,000 parts in stock Inspecting product $390,000 940 batches Processing purchase orders $220,000 440 orders Designing packaging $230,000 5 models a. What is total overhead cost for Job 102 using a plantwide overhead rate assuming the company assigns overhead based on 60,000 budgeted direct labor hours (Round to two decimals)? b. What is the total overhead cost for JOB 102 using Activity...
Required Information Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, C3 [The following information applies to the questions displayed below) Craft Pro Machining produces machine tools for the construction Industry. The following details about overhead costs were taken from its company records. Production Activity Indirect Labor Indirect Materials other Overhead Grinding $340,000 Polishing $190,000 Product modification 650,000 Providing power $200,000 Systen calibration 540,000 Additional Information on the drivers for its production activities follows Grinding Polishing Product modification Providing...
Required Information Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, C3 [The following Information applies to the questions displayed below.] Craft Pro Machining produces machine tools for the construction Industry. The following details about overhead costs were taken from its company records. Indirect Materials Other Overhead Indirect Labor $330,880 $175,00 Production Activity Grinding Polishing Product modification Providing power System calibration 589,800 $225,000 560,000 Additional Information on the drivers for its production activities follows. Grinding Polishing Product modification Providing...