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8 2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 Department 2 Overhead cost per unit: Scientific Business Scientific Business Departmental rates: Department 1 Department 2 Overhead cost per unit: Scientific Business per unit per unit per machine hour per direct labor hour 2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Scientific Business per unit $ per unit per machine hour per direct labor hour per unit ) Repeat using direct labor hours for Department 1 and machine hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. per unit Departmental rates: Department 1 Department 2 Overhead cost per unit: Scientific per unit per unit Business 3. Compute the overhead cost per unit for each product using activity-based costing. Round your calculations and answers to the nearest cent. Overhead Cost per direct labor hour per machine hour per unit per unit

8 2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 Department 2 Overhead cost per unit: Scientific Business Scientific Business Departmental rates: Department 1 Department 2 Overhead cost per unit: Scientific Business per unit per unit per machine hour per direct labor hour 2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Scientific Business per unit $ per unit per machine hour per direct labor hour per unit ) Repeat using direct labor hours for Department 1 and machine hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. per unit Departmental rates: Department 1 Department 2 Overhead cost per unit: Scientific per unit per unit Business 3. Compute the overhead cost per unit for each product using activity-based costing. Round your calculations and answers to the nearest cent. Overhead Cost per direct labor hour per machine hour per unit per unit

FINANCIAL ACCOUNTING
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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Product-Costing Accuracy, Plantwide and Departmental Rates, ABC Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products: Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Direct labor hours: Scientific calculator Business calculator Total Machine hours: Scientific calculator Business calculator Total Overhead costs: Setup costs Inspection costs Power Product-Related Data Business Scientific 73,000 $270,000 98,200 47,000 100 2,000 2,250 Department Data Department 1 Department 2 74,600 108.020 182,620 22,400 371.840 394,240 730,000 $2,700,000 982,000 470,000 $215,000 185,000 262,000 150 3,000 9,000 23,600 673.980 897,580 24,600 98.160 122,760 $215,000 185,000 146,000
Transcribed Image Text:Product-Costing Accuracy, Plantwide and Departmental Rates, ABC Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products: Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Direct labor hours: Scientific calculator Business calculator Total Machine hours: Scientific calculator Business calculator Total Overhead costs: Setup costs Inspection costs Power Product-Related Data Business Scientific 73,000 $270,000 98,200 47,000 100 2,000 2,250 Department Data Department 1 Department 2 74,600 108.020 182,620 22,400 371.840 394,240 730,000 $2,700,000 982,000 470,000 $215,000 185,000 262,000 150 3,000 9,000 23,600 673.980 897,580 24,600 98.160 122,760 $215,000 185,000 146,000
) Overhead costs: Setup costs Inspection costs Power Maintenance Total Required: 1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor hours. Round your calculations and answers to the nearest cent. $215,000 185,000 Plantwide rate Overhead cost per unit: Scientific Business 2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 Department 2 Overhead cost per unit: Scientific Business Departmental rates: Department 1 Department 2 Overhead cost per unit: Scientific Business 262,000 190.000 $852,000 $ Scientific Business per direct labor hour per unit per unit per machine hour per direct labor hour per unit 2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 Department 2 Overhead cost per unit: Scientific Business per unit $215,000 185,000 146,000 260.000 $806,000 per machine hour per direct labor hour per unit Repeat using direct labor hours for Department 1 and machine hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. per unit per direct labor hour per machine hour per unit per unit per unit per unit 3. Compute the overhead cost per unit for each product using activity-based costing. Round your calculations and answers to the nearest cent. Overhead Cost
Transcribed Image Text:) Overhead costs: Setup costs Inspection costs Power Maintenance Total Required: 1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor hours. Round your calculations and answers to the nearest cent. $215,000 185,000 Plantwide rate Overhead cost per unit: Scientific Business 2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 Department 2 Overhead cost per unit: Scientific Business Departmental rates: Department 1 Department 2 Overhead cost per unit: Scientific Business 262,000 190.000 $852,000 $ Scientific Business per direct labor hour per unit per unit per machine hour per direct labor hour per unit 2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 Department 2 Overhead cost per unit: Scientific Business per unit $215,000 185,000 146,000 260.000 $806,000 per machine hour per direct labor hour per unit Repeat using direct labor hours for Department 1 and machine hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. per unit per direct labor hour per machine hour per unit per unit per unit per unit 3. Compute the overhead cost per unit for each product using activity-based costing. Round your calculations and answers to the nearest cent. Overhead Cost
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