22)Corp makes two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Product Standard Deluxe Overhead costs Setups 12 28 Number of Number of Components Direct Labor Hours 255 245 8 12 $52,000 $78,000 Assume a traditional costing system applies the O/H costs based on DLH. What is the total amount of O/H costs assigned to the standard model? 23) Number of setups and number of components are identified as activity-cost drivers for O/H. Assuming an activity-based costing (ABC) system is used, what is the total amount of O/H costs assigned to the standard model?

22)Corp makes two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Product Standard Deluxe Overhead costs Setups 12 28 Number of Number of Components Direct Labor Hours 255 245 8 12 $52,000 $78,000 Assume a traditional costing system applies the O/H costs based on DLH. What is the total amount of O/H costs assigned to the standard model? 23) Number of setups and number of components are identified as activity-cost drivers for O/H. Assuming an activity-based costing (ABC) system is used, what is the total amount of O/H costs assigned to the standard model?

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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A Corporation manufactures two products: Product K and Product L. The company uses a plantwide overhead rate based on 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 K and L. Activity Cost Pool Activity Measure Machining Machine setups Total Cost Total Activity S 247,00013,000MHS 150setups 2products Direct labor-hours $ 260,00010,000DLHS Machine-hours Number of setups S 60,000 Number of products S 56,000 Product design Order size Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product K Product L 10,000 110 3,000 40 6,000 4,000 Required: 1. Compute the plantwide (POHR) overhead rate. 2. Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product K? How much is allocated to Product L? 3. Using the ABC system,…
Custom's has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are: Cost Pool Material Machining Inspection • Material cost pool . Material requisitions Machine hours Number of inspections • Machining cost pool Custom's data Cost Driver Inspection cost pool Estimated Activity per Driver 14,000 186,400 10,000 Estimated Overhead What is the predetermined overhead rate for each activity? Round to the nearest penny, two decimal places. $52,500 363,500 75,000
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Assume that company makes only two products: Product A and Product B. The company’s activity-based costing system has allocated $144,000 to an activity called machine setups. It is considering allocating the machine setups cost to its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures: Product A Product B Number of machine setups 30 45 Number of setup hours per setup 6 6 If the company uses number of setup hours as the activity measure, what is the activity rate for machine setups? rev: 10_30_2021_QC_CS-283805 Garrison 17e Rechecks 2021-11-13 Multiple Choice $11,825 $12,000 $320 $350
North Street Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled Number of Number of Number of Components Setups 16 26 $15,120 Product Standard Deluxe Overhead costs 7 OA. $16,150 O.B. $27,790 OC. $24,100. OD. $20,170 19 $25,220 Direct Labor Hours 780 400 Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead cost assigned to the deluxe model? erre
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Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has to overhead of $132,720. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Quantity/Amount Consumed by Indoor Line Quantity/Amount Consumed by Outdoor Line Activity Cost Pools Cost Driver Materials handling Number of moves Quality control Number of inspections Machine maintenance Number of machine hours Required: 1. Suppose Carlise used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Indoor Model Outdoor Model Total Cost Assigned to Pool $21, 120 $71,760 4,600 inspections $39,840 29,000 machine hours 19,000 machine hours 600 moves 500 moves 5,800 inspections Overhead Assigned