10/8/2021Chapter 5 - Homework-sehrish bashirThe cost of unused facility rent identified in the preceding step (8)the minimum rate that Bow shouldcharge for the use of the space. The facility rent is a (9)and should (10)the decision tosublet the space. (11)would be beneficial. Before subletting the space, though, Bow's managementshould (12).9: Data TableBow BoardsBudgeted Costs for theYear Ended December 31, 2020Direct materials-Basic boards291,500Direct materials-Competition boards531,300Direct manufacturing labor-Basic boardsDirect manufacturing labor-Competition boards612,000Machine setup costsMachine maintenance and utility costs1,105,000Indirect labor costs163,200Facility rent167,750Machine depreciation30,50010: Data TableOther information:BasicCompetitionUnits produced5,300Machine hours26,000Number of setups006Direct labor-hours36,00011: Requirements1.Calculate the cost-allocation rate for each of the activity-cost pools for variable and fixed overhead costs.2. Calculate the cost of unused capacity for the year.3.Calculate the total cost for each model, and the cost per unit for each model.Bow has the opportunity to sublease the unused factory space to a startup company that will be manufacturing surfapparel. None of Bow's machinery will be used. Is there a minimum annual rent that Bow should charge? Are thereother considerations that Bow's management should make prior to offering the space?4.any - -10/8/2021Chapter 5 - Homework-sehrish bashir4. Bow Boards manufactures two models of surfboards, Basic and Competition, in a facility in Southern California. Infabrication, machine setup costs are driven by the number of setups, machine maintenance and utility costs increase withthe number of machine hours, and indirect labor costs increase with direct labor hours. Facility rent and machinedepreciation are fixed, and are the basis of manufacturing capacity. Fixed costs are allocated equally to each unit produced,regardless of model. Currently, Bow uses 80% of its manufacturing capacity. The cost of unused capacity is not assigned toproducts, but is expensed as a separate line item. For 2020, Bow has budgeted the following:(Click the icon to view the budgeted information.)10,10(Click the icon to view other information.)11Read the requirementsRequirement 1. Calculate the cost-allocation rate for each of the activity-cost pools for variable and fixed overhead costs.Select the formula you will use, then calculate the cost driver rate. (Round the cost driver rates to the nearest cent, $X.XX."Machine maint & util" = "Machine maintenance and utility costs".)%3D(1)(2)Cost driver rate%3DMachine setups(3)%3D()(5)Machine maint & utilIndirect labor costs%3DFacility rent(9)Depreciation(7)Requirement 2. Calculate the cost of unused capacity for the year.The cost of unused capacity for the year =%3DRequirement 3. Calculate the budgeted total cost and the cost per unit for each model. (Use the rates calculated inRequirement 1, as needed, for your computations, and round all total cost amounts to the nearest whole dollar. Enter thecost per unit amounts to the nearest cent, $X.XX.)BasicCompetitionDirect materialsDirect manufacturing laborMachine setup costsMachine maintenance and utilitiesIndirect laborFacility rentMachine depreciationBudgeted total costNumber of unitsBudgeted cost per unitRequirement 4. Bow has the opportunity to sublease the unused factory space to a startup company that will bemanufacturing surf apparel. None of Bow's machinery will be used. Is there a minimum annual rent that Bow shouldcharge? Are there any other considerations that Bow's management should make prior to offering the space?Start by determining the cost of the unused factility rent.The cost of unused facility rent for the year =

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Answered: 11: Requirements 1. Calculate the…

FINANCIAL ACCOUNTING

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Curiumber Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range or output as follows. Output in Units 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Rent Cost 11.000 $5,290 5,290 8,464 8,464 8,464 8,464. 8,464 8.464 10.580 10,000 10,580 10.580 Direct Materials $4,200 7,200 7,200 9,600. 12,000 14,400 16.800 19,200 30.999 37,030 46.552
25: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity Budgeted Activity Cost Activity Base Casting $570,000 Machine hours Assembly 80,000 Direct labor hours Inspecting Setup Materials handling 42,000 Number of inspections Number of setups 38,000 23,750 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 6,000 13,000 19,000 Direct labor hours 3,000 2,000 5,000 Number of inspections 600 400 1,000 Number of setups 300 200 500 Number of loads 450 500 950 Units produced 6,000 3,000 9,000
Exercise 7: The following table contains data based on a company that makes a single product, and needs to be completed for different levels of production Number of units Total variable variable cost per Total fixed cost Fixed cost per cost unit unit 500 ? 50 ? 20 1500 ? 1800 ? ? 125000 ? ?
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1. Compute an activity rate for each activity using activity-based costing.
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11: Requirements 1. Calculate the cost-allocation rate for each of the activity-cost pools for variable and fixed overhead costs. 2. Calculate the cost of unused capacity for the year. 3. Calculate the total cost for each model, and the cost per unit for each model.