Chapter 5-Worksheet - Class Demo

Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $144,000 6,000 2,000 Assembly Number of Parts 71,000 25,000 46,000 Machine Maintenance Machine Hours 200,000 13,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign.

Activities and Activity Measures Expected Activity Estimated Overhead Costs Product 1 Product 2 Hand-processing (direct labor-hours) $ 320,000 45,000 55,000 Setting up equipment (number of setups) 150,000 9,000 21,000 Administering parts inventories (number of part types)  30,000 110 90   $ 500,000       Transformation Corporation has provided the information set forth above regarding the overhead to be allocated between the two products it produces: CDE and EFG. What is the activity rate for the hand-processing units activity?   multiple choice $3.20 per setup Incorrect $5.00 per setup $150.00 per part-type $3.20 per direct labor-hour

Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4] Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Number of units produced per year Direct labor-hours Activity Rate $ 11 per direct labor-hour $5 per machine-hour $ 45 Production orders Shipments $ 120 per shipment Product sustaining $ 900 per product Activity data have been supplied for the following two products: Machine-hours Machine setups Production orders Shipments Product sustaining per setup $ 160 per order Total Expected Activity K425 M67 2,000 200 1,025 2,600 7 7 14 3 50 40 3 3 3 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

Data     Allocation base Machine-hours Estimated manufacturing overhead cost $300,000   Estimated total amount of the allocation base 75,000 machine-hours Actual manufacturing overhead cost $290,000   Actual total amount of the allocation base 68,000 machine-hours       Enter a formula into each of the cells marked with a ? below           Computation of the predetermined overhead rate     Estimated manufacturing overhead cost ?   Estimated total amount of the allocation base ? machine-hours Predetermined overhead rate ? per machine-hour       Computation of underapplied or overapplied manufacturing overhead     Actual manufacturing overhead cost  ?    Manufacturing overhead cost applied to Work in Process during the year:     Predetermined overhead rate ? per machine-hour Actual total amount of the allocation base  ?  machine-hours Manufacturing overhead applied  ?    Underapplied (overapplied) manufacturing overhead  ?

Calculate the amount of overhead

Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Xactive $ 65.70 $ 19.10 1.4 DLHS 34,000 units Pathbreaker $ 51.90 $ 13.90 1 DLHS 84,000 units The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $2,750,440 131,600 DLHS Required: 1-a. Compute the predetermined overhead rate bašed on direct labor-hours. 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional costing system with an activity-based costing system that…

Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job P $ 25,000 $ 30,600 Molding 2,500 $ 13,000 $ 2.60 2,900 1,800 4,700 5. What is the total manufacturing cost assigned to Job Q? Note: Do not round intermediate calculations. Total manufacturing cost Job Q $ 14,000 $ 12,300 Fabrication 1,500 $ 16,800 $ 3.40 2,000 2,100 4,100 Total Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. 4,000 $ 29,800 Required: For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions, 9-15, assume that the company uses predetermined departmental overhead rates with machine-hours as the allocation…

J5

Activity Cost Pool Activity Measure Estimated Overhead Cost Machining 24 378,000 Machine-hours HR Supporting direct labour %24 Direct labor-hours 238,800 Machine setups 24 Number of setups 93,100 Number of product lines Product-sustaining $4 90,000 Total %24 799,900 The expected activity for the year was distributed among the company's two product lines as follows: Activity Measure Product A Product B Machine-hours 7900 6100 Direct labor-hours 7900 4100 Number of setups 40 150 Number of product lines 1 1 Required: 1. Based on the data of four cost pools and activity measures, compute the activity rate for each activity cost pool: a. What is the activity rate for the Machining activity cost pool? Round to nearest dollar Activity rate: $ per machine-hour b. What is the activity rate for the Supporting Direct Labour activity cost pool? Round to nearest dollar Activity rate: $ per direct labour-hour

Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Required: Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours LAPELLEu Overhead Cost $ 311,500 $ 8,840 $ 71,280 $ 63,700 $ 148,000 Expected Activity 44,500 DLHS 221 orders 99 part types 1,820 boards 14,800 MHs 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Product A Product B Product C Product D 6,800 51 27,300 29 4,600 49 5,800 92 34 17 33 15 500 2,100 770 6,300 550 0 2,400 4,000 Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the…

Accounting Question

eBook Carlton's Kitchen's three cost pools and overhead estimates are as follows: Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $162,000 5,000 4,000 Assembly Number of Parts 68,000 24,000 44,000 Machine Maintenance Machine Hours 150,000 13,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign.   Product A   Product B Total Overhead (ABC) $fill in the blank 1   $fill in the blank 2 Total overhead (traditional) fill in the blank 3   fill in the blank 4 Difference $fill in the blank 5   $fill in the blank 6

Direct Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Number of employees Square footage Support Departments Producing Departments Human Resources $160,000 General Factory $360,000 Fabricating Assembly $114,200 $95,000 60 45 80 1,500 6,000 14,000 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Chekov Company uses the direct method of support department cost allocation. Required: 1. Calculate the allocation ratios for the four departments using the direct method. If an amount is zero, enter "0". Round your answer to the nearest cent. Proportion of Driver Used by Human Resources Human Resources General Factory General Factory Fabricating Assembly 2. Using the direct method, allocate the costs of the…

Activity Allocation Base Predetermined Overhead Allocation Rate Materials handling Number of parts $8.00 per part Machine setup Number of setups 800.00 per setup Insertion of parts Number of parts 28.00 per part Finishing Number of finishing hours 60.00 per hour   Standard Deluxe Parts per rim 8.0 9.0 Setups per 500 rims 12.0 12.0 Finishing hours per rim 2.0 4.5 Total direct labor hours per rim 6.0 9.0 Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2024​: LOADING... ​(Click the icon to view the allocation​ rates.) Elkin produces two wheel rim​ models: standard and deluxe. Expected data for 2024 Part 1  The company expects to produce 500 units of each model during the year. Requirement 1. Compute the total estimated indirect manufacturing cost for 2024.   Begin by selecting the formula to compute the total estimated overhead​ (OH) costs.…

BDG Company manufactures two products (X and Y). The overhead costs (£100,000) have been divided into three cost pools that use the following activity drivers: Product Number of Setups 10 O A. £7,500 O B. £100 O.C. £17,500 OD. £25,000 Machine Hours 10 500 X Y 2,000 Cost per pool £15,000 £60,000 What is the amount of overhead cost to be assigned to Product Y using Parking Orders as the activity driver in an activity-based costing system? Packing Orders 75 - 175 £25,000

Gold Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product RST. Direct material cost per unit of RST Total estimated manufacturing overhead Total cost per unit of RST Total estimated machine hours, Direct labor cost per unit of RST $ 19 $308,000 $ 84 154,000 MH 27 $

Indirect Cost Allocation: Direct Method Sprint Manufacturing Company has two production departments, Melting and Molding. Direct general plant management and plant security costs benefit both production departments. Sprint allocates general plant management costs on the basis of the number of production employees and plant security costs on the basis of space occupied by the production departments. In November, the following overhead costs were recorded: Melting Department overhead $110,000 Molding Department overhead 400,000 General plant management 100,000 Plant security 50,000 Other pertinent data follow:   Melting Molding Number of employees 35 40 Space occupied (square feet) 10,000 20,000 Machine hours 10,000 2,000 Direct labor hours 4,000 20,000   a. Prepare a schedule allocating general plant management costs and plant security costs to the Meltingand Molding Departments.   Department Total Melting…

Estimated Estimated Cost Drivers Activity Cost Overhead Street Mountain Pools Costs Tires Tires Machine set ups $  90,000 150 350 Assembling $500,000 25,000 15,000 Inspection $400,000 180 320   Question Using the activity-based costing approach, determine the applied overhead rates for Darter Company.

Answer need for this general account question

IMAGE (A) Category Unit Batch Product Facility Total Pooled Cost Types of Costs $ 388,000 Indirect labor wages, supplies, factory utilities, machine maintenance 215,400 Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling Research and development 112,600 307,000 Machine hours Cost Driver Number of production orders Time spent by research department Rent, general utilities, maintenance, facility depreciation, Square footage administrative salaries IMAGE (B) Direct materials cost Direct labor cost Number of labor hours Number of machine hours Number of production orders Research and development time Number of units Square footage Type of Product Total Cost Cost per Unit a Commercial a. Home a. Miniature Combined total $ 0 b. Commercial b. Home b. Miniature Combined total $ 0 Commercial $25.07 per unit $ 10.35 per hour 6,000 10,000 Home Miniature Total $15.07 per unit $ 8.35 per hour $12.07 per unit $9.35 per hour 12,000 2,000 45,000 25,000…