17Belsky Corporation has provided the following data from its activity-based costing system:Activity Cost PoolsAssemblyEstimatedOverhead Cost$ 999,600Processing ordersInspection$ 101,300$ 138,700Expected Activity68,000 machine-hours2,000 orders1,900 inspection-hoursThe company makes 450 units of product Q19S a year, requiring a total of 710 machine-hours, 42 orders, and 12 inspection-hours per year. The productdirect materials cost is $36.31 per unit and its direct labor cost is $30.05 per unit.According to the activity-based costing system, the unit product cost of product Q19S is closest to: (Round your intermediate calculations to 2 decimalplaces.)Multiple Choice$96.23 per unitО$66.36 per unit$87.70 per unit

Answered: 17 Belsky Corporation has provided the…

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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KBG Manufacturing has the following standard cost sheet for one of its products: Direct materials ( 5 ft. @ $5) $25 Direct labour (1 hours @ $10) 10 Variable overhead ( 1 hours@ $ 4) 4 Fixed overhead ( 1 hours@ $2*) 2 Standard unit cost 41 *Rate based on expected activity of 15,000 hours. During the most recent year, the following actual results were recorded: Production 10,000 units Fixed overhead $30,000 Variable overhead $57,000 Direct materials (71,250 ft. purchased) $361,620 Direct labour (15,900 hours) $ 182,580 Required: Compute the following variances: 1. Direct materials price and usage variances. 2. Direct labour rate and efficiency variances
Aqua Corporation uses the weighted average method in its process costing system. Cost data for its work in process department follow: Materials $ 67,000 $325,000 Assuming equivalent units of production for materials are 40,000 and for conversion are 30,000, the cost per equivalent unit for conversion during the period is closest to: a. b. C. d. $4.93 $10.71 $14.17 $19.10 Beginning work in process Costs added during the period Conversion $148,000 $425,000
Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense
Foxx Company incurs $565000 overhead costs each year in its three main departments, setup ($30000), machining ($375000), and packing ($160000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information about Foxx’s two products is as follows: Product A1 Product B1 Number of setups 20 20 Machining hours 1000 4000 Orders packed 150 350 Number of products manufactured 600 400 Using ABC, how much overhead is assigned to Product A1 each year? $113000 $282500 $138000 $427000
Watson's Computer Company uses ABC to account for its manufacturing process. Activities Indirect activitybudget Allocation base (cost driver) Materials handling $55,000 Based on number of parts Machine setup $32,000 Based on number of setups Assembling $9820 Based on number of parts Packaging $15,100 Based on number of finished units Watson's Computer Company expects to produce 2330 computers. Watson's Computer Company also expects to use 11,000 parts and have 10 setups.The allocation rate for materials handling will be (Round all answers to two decimal places.) Question 16 options: $5.00 $6.48 $8.40 $23.61
Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets. Munoz currently uses plantwide allocation to allocate its overhead to all products. Direct labor cost is the allocation base. The rate used is 200 percent of direct labor cost. Last year, revenue, materials, and direct labor were as follows. Sales revenue Direct labor Direct materials Baseball Bats $1,540,000 260,000 556,000 Tennis Rackets a. Using plantwide allocation b. Using department's allocation rate $1,025,000 130,000 289,000 Required: a. Compute the profit for each product using plantwide allocation. b. Maria, the manager of Department T, was convinced that tennis rackets were really more profitable than baseball bats. She asked her colleague in accounting to break down the overhead costs for the two departments. She discovered that had department rates been used, Department B would have had a rate of 150 percent of…
Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department Y produces the tennis rackets. Munoz currently uses plantwide allocation to allocate its overhead to all products. Direct labor cost is the allocation base. The rate used is 100 percent of direct labor cost. Last year, revenue, materials, and direct labor were as follows. Baseball Bats Tennis Rackets Sales revenue $1,550,000 $1,000,000 Direct labor 360,000 100,000 Direct materials 558,000 290,000 Required: Compute the profit for each product using plantwide allocation. Maria, the manager of Department T, was convinced that…
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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

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