Required:
A. Compute the pool rates that would be used
for order processing, machine processing, and quality in an
activity-based costing system.
B. Assuming use of activity-based costing, compute the unit
manufacturing costs of Standard and Premium if the
expected manufacturing volume is met.
Homework Answers
| Computation of ABC rate | |||||
| Activity | OH Costs(Col 1) | No. of activity base(Col 2) | Activity Rate(Col 1 / Col 2) | ||
| Order Processing | $ 200,000 | 320 | $ 625.00 | per order prcoessed | |
| Machine Processing | $ 1,300,000 | 50,000 | $ 26.00 | per machine hours | |
| Quality Control | $ 125,000 | 10,000 | $ 12.50 | per inspection hours | |
| Total | $ 1,625,000 | ||||
| Standard | Premium | ||||
| ABC rate | Activity Based usage | Activity Based usage*ABC rate | Activity Based usage | Activity Based usage*ABC rate | |
| Order Processing | $ 625.00 | 200 | $ 125,000 | 120 | $ 75,000 |
| Machine Processing | $ 26.00 | 20000 | $ 520,000 | 30000 | $ 780,000 |
| Quality Control | $ 12.50 | 4500 | $ 56,250 | 5500 | $ 68,750 |
| Total Assigned manufacturing Cost | $ 701,250 | $ 923,750 | |||
| Computation of Total Cost of manufacturing | |||||
| Particulars | Standard | Premium | |||
| Direct Materials | $ 160,000 | $ 192,000 | |||
| Direct Labor | $ 160,000 | $ 320,000 | |||
| Manufacturing overhead | $ 701,250 | $ 923,750 | |||
| Total Cost of manufacturing | $ 1,021,250 | $ 1,435,750 | |||
| Units Produced | 5000 | 4000 | |||
| Manufacturing Cost per unit | $ 204.25 | $ 358.94 | |||
| OR | |||||
| Manufacturing Cost per unit | $ 204.250 | $ 358.938 | |||
Add Answer to:
Required:
A. Compute the pool rates that would be used
for order processing, machine processing, and...
A. Assuming use of direct-labor hours to apply overhead to production, compute the unit manufacturing costs...
A. Assuming use of
direct-labor hours to apply overhead to production, compute the
unit manufacturing costs of the Standard and Enhanced products if
the expected manufacturing volume is attained.
Manufacturing cost per unit: Standard $ ? and Enhanced $ ?
B. Assuming use of activity-based costing, compute the unit
manufacturing costs of the Standard and Enhanced products if the
expected manufacturing volume is attained.
Manufacturing cost per unit: Standard $ ? and Enhanced $ ?
C. By using direct-labor hours...
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Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor...
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Ontario, Inc, manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor...
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A. Assuming use of
direct-labor hours to apply overhead to production, compute the
unit manufacturing costs of the Standard and Enhanced products if
the expected manufacturing volume is attained.
Manufacturing cost per unit: Standard $ ? and Enhanced $ ?
B. Assuming use of activity-based costing, compute the unit
manufacturing costs of the Standard and Enhanced products if the
expected manufacturing volume is attained.
Manufacturing cost per unit: Standard $ ? and Enhanced $ ?
C. By using direct-labor hours...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. 5 points Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour eBook Enhanced Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit, 4 hours...
Knowledge Check 01 Activities Assembly Processing Orders inspection Activity Rates $14.35 per machine-hour $47.85 per order $70.30 per inspection-hour True Blue Corporation provided the data set forth above from its activity-based costing system. The company makes 430 units of product D28K a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct materials cost is $35.82 per unit and its direct labor cost is $29.56 per unit. What is the unit product cost...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. 5 points Standard: Estimated production volume, 3.000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour eBook Enhanced: Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit. 4 hours...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. points Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour eBook Enhanced: Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit, 4 hours at...
7. Ryan Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly..... $698,950 35,000 machine-hours Processing orders ....... $85,101 1,900 orders Inspection ......... $107,440 1,580 inspection-hours Data concerning the company's product P58Z appear below: Annual unit production and sales...... 400 Annual machine-hours...... 1,000 Annual number of orders. 90 Annual inspection hours.......... 30 Direct materials cost ........ $34.78 per unit Direct labor cost... $23.52 per unit According to the activity-based costing system,...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies Overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. points Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour eBook Enhanced: Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit, 4 hours at...
Ontario, Inc, manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour Enhanced Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit 4 hours at $12 per...
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