Homework Answers
| a) Calculation of Predetermined overhead rate | |||||
| Total Estimated Overhead = | $68000 | ||||
| Total Estimated Direct Labor Cost = | $20000+$14000 | ||||
| = | $34000 | ||||
| Overhead rate= | Total Estimated Overhead *100 | ||||
| Total Estimated Direct Labour Cost | |||||
| = | $68000*100 | ||||
| $34000 | |||||
| =200% | |||||
| Note-1 : In the present question there is no estimated direct labor cost and also estimated overhead cost is not given. Therefore we assume direct estimated | |||||
| labour cost is $34000(i.e. $20000+$14000) and also estimated overhead cost is $68000. | |||||
| b) Calculation of Cost Driver Rate | |||||
| Activity Pool (A) | Overhead Costs (B) | Cost Driver (C ) | Total Driver Usage (D ) | Cost Driver Rate (B/D) | |
| Machine Setup | 32000 | No of Setups | 500 | $ 64 Per machine setup | |
| Assembly | 36000 | Machine Hours | 12000 | $3 per machine hour | |
| c ) Calculation of Unit Cost of One-Mile Light by using Activity Based Costing | |||||
| Particulars | One-Mile | ||||
| Working | Amount | ||||
| Direct material Cost | (20000 units*$6 per unit direct material cost) | $ 1,20,000.00 | |||
| Direct Labour Cost | (20000 Units *$ 8 per unit direct labor cost) | $ 1,60,000.00 | |||
| Machine setup Cost | (150 machine setup*$64 Cost driver rate per machine setup) | $ 9,600.00 | |||
| Assembly Cost | (4000 machine hour*$3 cost driver rate per machine hour) | $ 12,000.00 | |||
| Total Cost | $ 3,01,600.00 | ||||
| No of Units | 20000 | ||||
| Cost per Unit (A/B) | $ 15.08 | ||||
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follows.
No. 156
No. 157
Anticipated volume (units)
6,600
15,500
Direct material cost
$
43
$
68
Direct labor cost
40
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Written please
Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Activity Pool Overhead Costs Total Driver Usage Setup $768,000 9,600 setups Materials purchasing $330.000 8.250 purchase orders Machining/fabricating $408,000 81,600 machine hours Total overhead costs $1,506,000 Standing Desks Portable Desks Number of Units Produced 120,000 30,000 Direct materials...
Private Corporation manufactures two types of transponders—no.
156 and no. 157—and applies manufacturing overhead to all units at
the rate of $78.00 per machine hour. Production information
follows.
No. 156
No. 157
Anticipated volume (units)
6,600
15,500
Direct material cost
$
43
$
68
Direct labor cost
40
28
The controller, who is studying the use of activity-based
costing, has determined that the firm's overhead can be identified
with three activities: manufacturing setups, machine processing,
and product shipping. Data on...
Problem 1: Dandy Desks Company manufactures two products: a standing desk and a portable desk. The portable desks are more complex of the two products, and they require more direct labor time and more machine time per unit than the standing desk. Manufacturing overhead is currently assigned to the products on the basis of direct labor hours. The company has gathered some activity information and is interested in the differences between its present costing method and activity-based costing. All overhead...
Quality Furniture,Inc., produces a wood desk that sells for $500
and a wood table that sells for $900. Last year, total overhead
costs of $6,000,000 were allocated based on direct labor costs.
Direct labor costs totaled $2,000,000 last year, and Quality
Furniture produced 15,000 desks and 5,000 tables. Total direct
labor and direct materials costs by product for the last year were
as follows:
Desk
Table
Total
Direct materials
1,575,000
950,000
Direct labor
1,200,000
800,000
2,000,000
Sales price
500
900...
Please answer all :))
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41. Activity-Based Costing Versus Traditional Approach, Activity-Based Management. Fine Finishing, Inc, produces a wood desk that sells for $500 and a wood table that sells for $900. Last year, total overhead costs of $6,000,000 were allocated based on direct labor costs. Direct labor costs totaled $2,000,000 last year, and the company produced 15,000 desks and 5,000 tables. Total direct labor and direct materials costs by product for last year were as follows: Desk Table Direct materials $1,575,000 $950,000 Direct labor...
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