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
And this is a supplement of the question . What is pool rate for the material -insertion activity ? a . None of the given answers . b. 11.00 per part . c. 16.18 per part . d $1.00 per part . e $49.50 per part .
Ramsey SARL uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs - Security expense and Building depreciation - are allocated to three activity cost pools - Shipping, Carving, and Other - based on resource consumption. Data to perform these allocations appear below: Overhead Costs: Security expense: $105,000 Building depreciation: $70,000 Distribution of Resource Consumption across Activity Cost Pools: Overhead Cost Activity Cost Pools Shipping Carving Other Security expense 0.30 0.42 0.28 Building depreciation 0.34 0.32 0.34 The second stage of allocation is done by assigning the Shipping costs to products on the basis of orders shipped while products are assigned Carving costs based on machine hours. Costs assigned to the Other activity pool are not further assigned to products. Activity information for Ramsey's only two products is below: orders shipped machine hours Product BA-15: 6,300 1,500…
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
Shine Ltd manufactures two products, Exe and Zed. Currently, overheads are apportioned using a traditional absorption costing basis. You are the cost accountant and from the class discussion on activity based costing (ABC), you are considering its implementation in your company for the purposes of charging overheads to production. The following information has been provided: Type of cost Amount Current basis Volume related costs Sh. 600,000 Machine hours Purchasing related cost Sh.420,000 Labour hours Set-up costs Sh. 360,000 Labour hours Extracts from the standard costs show the following: EXE ZED Labour hours per unit 4 2 Machine hours per unit 2 2 Budgeted production next year 20,000 10,000 Number of purchase orders per annum 150 60 Number of machine set-up per annum 70 50 Required: b) Using ABC system, determine the overheads charged to product Zed, under Volume related costs?…
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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Sabby Industries has three activity cost pools and two products. It expects to produce 2,900 units of Product S209 and 1.200 of Product NZ16. Having identified its activity cost pools and the cost drivers for each pool, Sabby accumulated the following data relative to those activity cost pools and cost drivers. Activity Cost Pool Machine set-ups Assembling Inspection (a) Cost Driver Assembling Set-ups Machine hours Calculate the overhead rates. Inspection Inspections Machine set-ups $ $ Estimated Overhead $78,660 323,000 6,400 Estimated Use of Cost Drivers per set-up 190 per inspection 17,000 100 per machine hour 5709 NZ16 130 10,100 60 60 6,900 40
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AB Company uses activity based costing and gives you the following data regarding cost pools and estimated overhead cost for each pool. Machine related RO 250,000 Material handling RO 450,000 Purchase related RO 320,000 General factory RO 610,000 The amount of total estimated overhead is: a. RO 1630,000 b. RO 1020,000 c. RO 1380,000 d. RO 930,000
XYZ Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changin to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount XY Production setups Number of setups 24 82.000 12 Material handling Number of parts 48,000 56 24 Packaging costs Number of units 130,000 80,000 50,000 $ 260,000 What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)? Select one: O a. $2.27. Ob. none of the given answer. Oc $2.33. 2d $1.83. 2e s179.