Question

Consider the following data for two products of Gitano Manufacturing (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and OH rate and cost per unit" answers to 2 decimal places.) Number of units produced Direct labor cost (329 per DLH) Direct materials cost Product 11,000 units 0.12 DLH per unit $ 2.30 per unit Products 1.500 units 0.27 DH per unit $ 2.70 per unit Overhead costs Activity Machine setup Materials handling Quality control inspections $ 158,700

Answer 1

Solutions:

M Predetermined Overhead Rate Overhead cost $ 158,700 $92 Per DLH /Direct labor hours (11000*0.12+1500*0.27 1725 Product Activity Driver Plant wide OH Rate Total Overhead Cost Units produced OH Cost per unit Product A 1320 $92 $121,4401 11000 $11.04 Product B 405 $92 $37,260 1500 $24.84 Product A Prodcut B $2.70 13 Direct Materials Dircet labor Overhead cost Total Product cost per unit $2.30 $3.48 $11.04 $16.82 $7.83 $24.84 $35.37 15 16 Product A Market Price Total Product cost per unit Grosss profit Prodcut B $21.94 $16.82 $5.12 $57.00 $35.37 $21.63 373801 $983.684211 Activity based costing Machine Setup Overhead Cost Setups Materials Handling Overhead Cost Parts required Quality Control Overhead Cost Inspections hours 54000 $2,347.826087 $220.000000 673201 306 Activity Driver Activity rate Total Overhead cost | 101 12 56 $983.684211 $2,347.826087 $220.000000 Overhead Assigned Product A Machine Setup Materials Handling Quality Control Total OH per unit Product B Machine Setup Materials Handling Quality Control Total OH per unit 9836.84 2105 28173.91304 12320 50330.75515 3.728204085 28 $983.684211 $2,347.826087 $220.000000 27543.15789 25826.08696 55000 108369.2449 63.74661462 46 Product A Total Maufacturing Cost Direct Materials Dircet labor Overhead cost Total Product cost per unit Product B $2.30 $3.48 $3.73 $951 $2.70 $7.83 $63.75 $74.28 Product A Market Price Total Product cost per unit Grosss profit Prodcut B $21.94 $9.51 $12.43 $57.00 $74.28 -$17.28 57 58 319 (5) Sheet723 ) Sheet724 Sheet725 Sheet279 (3)