Mathematical Financial
Annual Production in Units 50 000 100 000
Direct Material Costs 150 000 300 000
Direct Manufacturing Labour Cost 50 000 100 000
Direct manufacturing labour hours 2, 500 5 000
Machine Hours
25 000 50 000
Number of Production runs 50 50
Inspection hours
1 000 500
Total Manufacturing Overhead Costs are as follows:
Total
Machining costs 375 000
Setup Costs 120 000
Inspection costs 105 000
Instruction:
1. Choose a cost driver overhead cost pool and calculate the manufacturing overhead cost per unit for each product.
2. Compute the manufacturing cost per unit for each product.
Overhead rate is used for allocate overhead costs based on the number of cost driver units. So, we can compute as follows. | |||||
Cost Driver for each Overhead cost | |||||
Overhead cost | Amount (A) | Cost Driver | No. Of Driver (B) | Cost Per Driver (A/B) | |
Machining Cost | 375000 | Machine Hours | 75000 | $ 5 Per Hour | |
Set up cost | 120000 | No. of Production Hours | 100 | $1200 Per Production Runs | |
Inspection cost | 105000 | Inspection Hours | 1500 | $ 70 Per Hour | |
So, Manufacturing Overhead Cost Per unit as follows. | |||||
Manufacturing Overhead Cost | |||||
Overhead cost | Mathematical | Financial | |||
Machining Cost | $ 5 Per Hour X 25000 Hours = $125000 | $ 5 Per Hour X 50000 Hours = $250000 | |||
Set up cost | $1200 Per Production Runs x 50 = $60000 | $1200 Per Production Runs x 50 = $60000 | |||
Inspection cost | $ 70 Per Hour x 1000 = $70000 | $ 70 Per Hour x 50 = $35000 | |||
Total | 255000 | 345000 | |||
Manufacturing Overhead Cost Per unit | |||||
Mathematical = | Total of Manufacturing Overhead cost | ||||
Total Annual Production in Units | |||||
255000 | = $ 5.1 Per Unit | ||||
50000 | |||||
Financial = | Total of Manufacturing Overhead cost | ||||
Total Annual Production in Units | |||||
345000 | = $ 3.45 Per Unit | ||||
100000 | |||||
B. | Manufacturing cost per unit for each product | ||||
Nature | Mathematical | Financial | |||
Direct Material cost | 150000 | 300000 | |||
Direct Labour cost | 50000 | 100000 | |||
Total Prime Cost (A) | 200000 | 400000 | |||
Total Units (B) | 50000 | 100000 | |||
Prime Cost Per Unit (A/B) | 4 | 4 | |||
Add : Manufacturing Overhead cost Per unit | 5.1 | 3.45 | |||
Total Manufacturing Cost Per Unit | 9.1 | 7.45 | |||
Neylon Company produces mathematical and financial calculators and operates at capacity. Data related to the two products follows. Requirements 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. E (Click the icon to view the data.) 2. Compute the manufacturing cost per unit for each product. How might Neylon's managers use the new cost information from its activity-based costing system to better manage its business? Total manufacturing overhead...
Neylon Company produces mathematical and financial calculators and operates at capacity. Data relat i Data Table (Click the icon to view the data.) Mathematical Financial Total manufacturing overhead costs are: Total Machining costs $ 450,000 Setup costs 120,000 Inspection costs 100,000 Annual production in units Direct materials cost Direct manufacturing labor cost Direct manufacturing labor-hours 100,000 300,000 $ 100,000 $ 5,000 25,000 200,000 600,000 200,000 10,000 50,000 100 300 Begin by choosing a cost driver for each overhead cost pool....
Perez Company produces mathematical and financial calculators and operates at capacity. Data related to the two products follows Requirements 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. Compute the manufacturing cost per unit for each product. How might Perez's managers use the new cost information from its activity-based costing system to better manage its business? Click the icon to view the data.) 2. 3. Total manufacturing overhead...
There should be 6 problems/answers on this question. Walsh Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here. B (Click the icon to view the data.) Total manufacturing overhead costs are as follows: 6 (Click the icon to view the overhead costs.) Requirements 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. 2. Compute the manufacturing cost per...
Sander Company produces mathematical and financial calculators and operates at capacity. Data related to the two products follows. Requirements 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for ea product. E (Click the icon to view the data.) 2. Compute the manufacturing cost per unit for each product. Total manufacturing overhead costs are: 3. How might Sander's managers use the new cost information from its activity-based costing system to better...
Huey Parker produces mathematical and financial calculators. Data related to the two products are presented below. LO 3 1. $6 per machine hour Mathematical Financial Annual production in units 50,000 100,000 Direct materials costs $180,000 $360,000 Direct manufacturing labour costs $ 60,000 $150,000 Direct manufacturing labour-hours 2,500 5,000 Machine-hours 35,000 40,000 Number of production runs 50 50 Inspection hours 1,000 500 Both products pass through Department 1 and Department 2. The departments’ combined manufacturing overhead costs are Costs Total Machining...
There should be 6 parts total to this question. The part of the first problem that is highlighted in white is incorrect. The requirements are the questions. Sullivan Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here. (Click the icon to view the data.) Requirements 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. 2. Compute the manufacturing...
1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. (Click the icon to view the data.) Compute the manufacturing cost per unit for each product. How might Neylon's managers use the new cost information from its activity-based costing system to better manage its business? 2. Total manufacturing overhead costs are: 3. Total Machining costs 360,000 Data Table Setup costs 108,000 Inspection costs 117,000 Mathematical Financial Requirement 1. Choose...
Save Homework: Chapter 5 HW Assignment Score: 0 of 1 pt E5-23 (similar to) 3 of 4 [0 complete HW Score: 0%, 0 of 4 pt Question Help Potvin Company produces mathematical and financial calculators and operates at capacity Data related to the twn products follows (Click the icon to view the data.) Total manufacturing overhead coets are: 33(Click the inon to vinw the anstrad costs. Requirements 1. Choose a cost driver for each overhead cast goal and calculate the...
(a) Phoenix Corporation has 4 departments in its factory consisting of two service departments, Human Resources (HR) and Information System (IS), and two production departments, Machining and Assembly. Each of the production departments produce a single product. The current costs of each department are: $60,000 $2,400,000 $8,756,000 S12,542,000 HR IS Machining Assembly The distribution and consumption of departments' services is given as follows: Service provided to: Machining Assembly HR IS Services provided by: 40% 35% HR 25% 10% IS 30%...