Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Materials handling Total G-09 19,300 Required: $7 4 144 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: a. Overhead rate b. Machine depreciation $ 104,220 52,110 41,688 $ 198,018 G-35 3,860 $19 Exercise 9-36 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4) 7 72 a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. per machine hour per machine hour Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling per machine hour per machine hour per production run % direct material cost
Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Materials handling Total G-09 19,300 Required: $7 4 144 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: a. Overhead rate b. Machine depreciation $ 104,220 52,110 41,688 $ 198,018 G-35 3,860 $19 Exercise 9-36 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4) 7 72 a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. per machine hour per machine hour Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling per machine hour per machine hour per production run % direct material cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Heidelberg Fabrication manufactures two products, G-09 and G-35:
Units produced
Direct materials cost per unit
Machine-hours per unit
Production runs per quarter
Machine depreciation
Setup labor
Materials handling
Total
G-09
19,300
Required:
$7
4
144
Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the
plant follow:
a. Overhead rate
b. Machine depreciation
$ 104,220
52,110
41,688
$ 198,018
G-35
3,860
$19
Exercise 9-36 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4)
7
72
a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter?
Note: Round your answer to 2 decimal places.
b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for
machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver
rates for the proposed system at Heidelberg.
per machine hour
per machine hour
Transcribed Image Text:Required:
a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter?
Note: Round your answer to 2 decimal places.
b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for
machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver
rates for the proposed system at Heidelberg.
a. Overhead rate
b. Machine depreciation
b. Setup labor
b. Materials handling
per machine hour
per machine hour
per production run
% direct material cost
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