13. Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead costsconsist of assembly costs and inspection costs. The following information is avalable:Tatal CostS60000CostTitaniumAluminumAssembly500 mach. hours500 mach. hours150$100000Inspections3502100 labor hours1900 labor hoursReynoso is considering switching from one overhead rate based on labor hours to activity-based costingUsing activity-based costing, how much assembly cost is assigned to titanlum racquets?a $42000.b. $21000.C $30000.d. $31500.

Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

13. Reynoso Corporation manufactures ttanium and aluminu tennis racouets. Reynose's total overhead costs consist of assembly costs and inspection costs. The following information is available Iatal Cost s60000 $100000 Cost Aluminum Titanium 500 mach. hours 350 Assembly 500 mach. hours Inspections 150 2100 labor hours 1900 labor hours Reynose is considering switching from one overhead rate based on labor hours to activity-based costing Using activity-based costing, how much assembly cost is assigned to titanium racquets? A 42000. . $21000. C 130000. d. $31500.

13. Reynoso Corporation manufactures ttanium and aluminu tennis racouets. Reynose's total overhead costs consist of assembly costs and inspection costs. The following information is available Iatal Cost s60000 $100000 Cost Aluminum Titanium 500 mach. hours 350 Assembly 500 mach. hours Inspections 150 2100 labor hours 1900 labor hours Reynose is considering switching from one overhead rate based on labor hours to activity-based costing Using activity-based costing, how much assembly cost is assigned to titanium racquets? A 42000. . $21000. C 130000. d. $31500.

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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Z Company uses activity based costing and gives you the following data regarding cost pools and estimated overhead cost for each pool. Machine related          RO 80,000 Material handling        RO 130,000 Purchase related          RO 340,000 General factory           RO 320,000 The amount of total estimated overhead is: a. RO 660,000 b. RO 550,000 c. RO 790,000 d. RO 870,000 fast just choose
The All Ball Company manufactures three products (tennis balls, soccer balls and basket balls). The overhead costs of R180000 have been divided into three cost pools as follows: Ordering: R90000 Labour: R50000 Dispatch: R40000 The activity cost drivers and annual usage have been identified as:              Product A Product B Product C No. of labour hours 500 2 000 1 000 No. of machine hours 700 1 000 3 000 No. of orders placed 15 10 25 No. of dispatches 35 15 20 The allocation rate per order using an ABC system is: a. R1800.00 b. R1285.71 c. R6000.00 d. R1000.00 e. R3600.00
23) Al Zain Company uses activity based costing and gives you the following data regarding cost pools and estimated overhead cost for each pool. Machine related          RO 110,000 Material handling        RO 95,000 Purchase related          RO 70,000 General factory           RO 105,000 The amount of total estimated overhead is: a. RO 175,000 b. RO 270,000 c. RO 380,000 d. Ro 275,000
Petrillo Company produces engine parts for large motors. The company usesa standard cost system for production costing and control. The standard costsheet for one of its higher volume products (a valve) is as follows: Direct materials (7 lbs @$5,4) $37,80 Direct labor (1,75 lbs @$18) $31,50 Variable overhead (1,75 lbs @$4) $7 Fixed overhead (1,75 lbs @$3) $5,25 Standard unit cost $81,55 During the year, Petrillo had the following activity related to valve production:a. Production of valves totaled 20,600 units.b. A total of 135,400 pounds of direct materials was purchased at $5.36per pound.c. There were 10,000 pounds of direct materials in beginning inventory(carried at $5.40 per pound). There was no ending inventory. d. The company used 36,500 direct labor hours at a total cost of $656,270.e. Actual fixed overhead totaled $110,000.f. Actual variable overhead totaled $168,000.Petrillo produces all of its valves in a single plant. Normal activity is 20,000units per year. Standard…
Coronado Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. The traditional and the activity-based costing systems assign the same amount of direct materials and direct labor costs. Products Product 540X Product 137Y Product 249S (a) Sales Revenue $210,000 Product 137Y * Your answer is incorrect. Product 540X $ LA LA 166,000 LA 94,000 Product 249S $ Total Costs Traditional $59,000 For each product line, compute operating income using the traditional costing system. 49,000 17,000 160060 131040 ABC 53900 $49,940 34,960 40,100
COVID 19 Co currently uses traditional costing procedures, applying $800.000 of overhead to products YB and YA on the basis of direct labor hours. The company is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH), production setups (SU), and number of parts components (PC) as cost drivers. Data on the cost pools and respective driver volumes follow Product Pool No.1 (Driver DLH) Pool No.2 (Driven SU) Pool No 3.(Drivern PO YB 1,200 45 2.250 YA 2,800 55 750 Pool Cost $160,000 $280,000 The overhead cost allocated to YA by using activity-based costing procedures would be Select one Oa None of the answers is correct. b. $444.000 C S156.000 d. $240.000.
A Midwest producer of specialty farming equipment, Agriboon, has three products that the company needs costing information about. The following information is available for each product. XY263 GO987 TR345 Direct material cost per unit $2.00 $8.00 $10.00 Direct labor cost per hour $15.00 $16.75 $18.00 Agriboon presently applies overhead using a predetermined rate based on direct labor hours. Estimated Direct Labor hours for the year are 132,026. The product leader for GO987 has suggested that Agriboon switch to activity-based costing and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for the year: Activity Recommended Cost Driver Estimated Cost Estimated Cost Driver Units Materials Handling Requisition Request $38,912 1,216 Request Machine Operations Machine Hours $142,500 12,000 Hours Safety Compliance Compliance Test $125,000 1,100 Test Total OH…
Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso’s total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Titanium Aluminum Total Cost Assembly 500 mach. hours 500 mach. hours $27000 Inspections 350 150 $80000 2100 labor hours 1900 labor hours Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing.Using activity-based costing, how much inspections cost is assigned to titanium racquets? $24000. $40000. $56000. $29000.
Give the proper explanation.
Q14. ABC Corp manufactures products X45E and K36N. The company uses a plantwide overhead rate based on DLHS (direct labor-hours). It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products X45E and K36N. Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine setups $ 120,000 $ 90,000 Number of products $ 84,000 $ 300,000 6,000 MHs 150 setups Machine-hours Number of setups 2 products 10,000 DLHS Product design Order size Direct labor-hours Product Activity Measure X45E 4,000 К36N Machine-hours 2,000 Number of setups Number of products Direct labor-hours 90 60 1 1 7,000 3,000 Determine the percentage of the total overhead cost that is allocated to Product K36N using the plantwide overhead rate?
Standard Product CostsDeerfield Company manufactures product M in its factory. Production of M requires 2 pounds of material P, costing $8 per pound and 0.5 hour of direct labor costing, $14 per hour. The variable overhead rate is $12 per direct labor hour, and the fixed overhead rate is $16 per direct labor hour. What is the standard product cost for product M? Direct material Answer Direct labor Answer Variable overhead Answer Fixed overhead Answer Standard product cost per unit Answer
Crmration manufactures bwo models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Number of Number of Setups Components Direct Labor Hours 10 290 Preduct Standard 13 18 235 32 Delue $72,000 $95,200 Overhead costs Amnealraditional costing system applies the overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model? (Do not round interim calculations. Round the final anewes ln the a whole dollar) OA S92.358 OB $74,842 OC $83,600 OD. $52.587 O Time Remaining: 01:46:06 Next % 5 6. 7. 8. ఉం W R Y 314