03Rand Company computed the following activity rates using activity-based costing.ActivitySetupMaterials handlingInspectionActivity Rate$ 1,180 per setup$ 50 per materials requisition$ 4 per unit inspectedThe company's deluxe model used the following activities to produce 1,000 units.ActivitySetupMaterials handlingInspectionActual Activity Usage3 setups28 materials requisitions1,000 units inspectedCompute the overhead cost per unit for the deluxe model using activity-based costing.ActivitySetupMaterials handlingInspectionTotal allocated costUnits producedOverhead cost per unitActivity UsageActivity RateAllocated Cost

Step 1:Allocated costs can be calculated by multiplying the activity usage and the activity rates…

Answered: 03 Rand Company computed the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Activity Base Entry Dining Total Machine hours 5,320 4,710 10,030 Direct labor hours 4,570 6,860 11,430 Number of inspections 1,940 610 2,550 Number of setups 310 70 380 Number of loads 700 190 890 Units produced 10,600 5,300 15,900 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting per machine hour Assembly per direct labor hour Inspecting 24 per inspection Setup per setup Materials handling per load b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amounts to the nearest cent. Product Total Activity Cost Activity Cost Per Unit Entry Lighting Fixtures Dining Room Lighting Fixtures
Activity-Based Costing Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities—production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities: Activity Activity Cost Activity Base Production setup $ 44,000 Number of setups Procurement 13,500 Number of purchase orders (PO) Quality control 97,500 Number of inspections Materials management 84,000 Number of components Total $239,000 The activity-base usage quantities for each product are as follows: Setups PurchaseOrders Inspections Components Unit Volume Custom 290 760 1,200 500 2,000 Standard 110 140 300 200 2,000 Total 400 900 1,500 700 4,000 a. Determine an activity rate for each activity. Activity Rates Production Setup Procurement Quality Control…
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O&G Company manufactures console tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each console table consists of 40 separate parts totaling $250 in direct materials and requires 5.0 hours of machine time to produce. Additional information follows: Activity Materials handling Allocation Base Number of parts Machine hours Number of parts Number of finished units Machining Assembling Packaging What is the number of finished console tables? OA 200 OB. 467 OC. 25 OD. Cannot be determined from the information given Cost Allocation Rate $3.00 per part $4.80 per machine hour $1.00 per part $4.00 per finished unit
Data concerning three of Kilmon Corporation’s activity cost pools appear below: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembling products $ 65,540 4,520 assembly hours Designing products $ 578,112 3,011 product design hours Setting up batches $ 41,820 820 batch set-ups Required: Compute the activity rates for each of the three cost pools. (Round your answers to 2 decimal places.) Activities Activity rate Assembly products Designing products Setting up batches
The Lakeside Company uses a weighted-average process costing system. The following data are available: Beginning inventory 0 Units started in production 20,000 Units finished during the period 16,000 Units in process at the end of the period(complete as to materials, ¼ complete as to labor and overhead) 4,000 Cost of materials used $ 35,200 Labor and overhead costs $ 37,400 Total cost of the 16,000 units finished is: Multiple Choice $63,360. $67,320. $72,640. $65,120.
Carla Vista Industries has three activity cost pools and two products. It expects to produce 2,700 units of Product SZ09 and 1,400 of Product NZ16. Having identified its activity cost pools and the cost drivers for each pool, Carla Vista accumulated the following data relative to those activity cost pools and cost drivers. question: Assign the overhead cost to the two products: SZ09$? and NZ16$?
Proctor has a policy of holding no inventories of any kind. Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield variances. Complete this question by entering your answers in the tabs below. Required A Required B Saved Compute materials price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Materials price variance Materials efficiency variance X-1 Y-7 Required A Required B > Total
Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost $ 888,300 Assembly Processing orders $ 60,560 Inspection $ 101,572 Data concerning the company's product Q79Y appear below: Annual unit production and sales Annual machine-hours Annual number of orders Annual inspection hours Direct materials cost Direct labor cost Multiple Choice Total Activity 54,000 machine-hours 1,600 orders: 1,340 inspection-hours O $144.43 per unit 600 1,040 70 45 According to the activity-based costing system, the average cost of product Q79Y is closest to: (Round your intermediate calculations to 2 decimal places.) $49.00 per unit $ 41.13 per unit
2 Drilling Company uses activity-based costing and provides this information: Driver Rate $ 0.80 Manufacturing Activity Materials handling Machinery Assembly Inspection Cost Driver Number of parts Number of machine hours Number of parts Number of finished units 58.00 3.20 37.00 Drilling has just completed 87 units of a component for a customer. Each unit required 107 parts and 3.35 machine hours. The prime cost is $1,370 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Required: 1. Compute the total manufacturing costs and the unit costs of the 87 units just completed using ABC costing. 2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $187 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $307 per unit. Compute the full product cost per unit, including upstream,…

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