Product Costs using Activity RatesAtlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly productiondepartments. In addition to production activities, several other activities are required to produce the two products. These activities and their associatedactivity rates are as follows:ActivityActivity RateFabrication$22 per machine hourAssembly$8 per direct labor hourSetup$45 per setupInspecting$23 per inspectiaonProduction scheduling$9 per production orderPurchasing$6 per purchase orderThe activity-base usage quantities and units produced for each product were as follows:Activity BaseElliptical Machines TreadmillMachine hours1,6961,001Direct labor hours433169Setups5918Inspections636382Production orders6713Purchase orders180110Units produced276185Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product. If required, round the per unitanswers to the nearest cent.Total Activity CostActivity Cost Per UnitElliptical MachinesTreadmill

Name: Product Costs using Activity RatesAtlas Enterprises Inc. manufactures
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Description: Product Costs using Activity RatesAtlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly productiondepartments. In addition to production activities, several other a

Activity-based costing is where the cost is absorbed into the product according to the activity that…

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Activity Activity Rate Fabrication $22 per machine hour Assembly $8 per direct labor hour Setup $45 per setup Inspecting $23 per inspection Production scheduling $9 per production order Purchasing 16 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,696 1,001 Direct labor hours 433 169 Setups 59 18 Inspections 636 382 Production orders 67 13 Purchase orders 180 110 Units produced 276 185 Use the activity rate and usage information to calculate the total activity cost and activity each product. If required, round the per ur

Activity Activity Rate Fabrication $22 per machine hour Assembly $8 per direct labor hour Setup $45 per setup Inspecting $23 per inspection Production scheduling $9 per production order Purchasing 16 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,696 1,001 Direct labor hours 433 169 Setups 59 18 Inspections 636 382 Production orders 67 13 Purchase orders 180 110 Units produced 276 185 Use the activity rate and usage information to calculate the total activity cost and activity each product. If required, round the per ur

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $215,160 Machine hours Assembly 189,550 Direct labor hours Inspecting 30,520 Number of inspections Setup 39,730 Number of setups Materials handling 36,960 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 5,180 4,600 9,780 Direct labor hours 4,460 6,690 11,150 Number of inspections 1,660 520 2,180 Number of setups 230 60 290 Number of loads 700 180 880 Units produced 10,400 5,200 15,600 a. Determine the activity rate for each activity. If required, round the rate to the…
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A company's standard cost system requires 7,000 direct labor hours per month jg. qtler taproduce 3,500 units of handbags. The management has set 2 standard of using 4.3 yards of direct materials per unit of handbag. Information regarding standard costs is mentioned below: Particulars Total standard direct materials cost Total standard direct labor cost Total standard variable manufacturing overhead (based on direct labor-hours) Amount $54,250 $42,000 $18,200 During November, the company produced 3,600 wits of handbags using 6 960 direct labor hours. Actual cots recordad isthe month of Novemb are ss allows:
Trax Company manufactures 75 stationary bikes and 100 rowing machines with three activities. Activity rates to produce these products follow. Activity Rate $ 20 Activity Assembly Purchasing $ 10 Inspection $ 25 Activity usage for each product follows. Compute the overhead cost per unit for the stationary bikes and the rowing machines. (Round Overhead per unit amounts to 2 decimal places.) Activity Cost Driver Stationary Bikes Direct labor hours Purchase orders Inspections per direct labor hour per purchase order. per inspection Activity Usage Rowing Machines 300 12 15 500 18 20
Factory depreciation Indirect labor Factory electricity Indirect materials Selling expenses Administrative expenses Total costs Tortilla chips Potato chips Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: Budgeted Volume Processing Hours (Cases) Per Case Pretzels Total Tortilla chips Potato chips $24,012 59,508 6,000 6,000 1,200 13,200 Pretzels 6,786 14,094 33,408 18,792 $156,600 Total If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. per processing hour 0.12 0.15 b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted accounting principles. Total Per-Case Factory Overhead Factory Overhead 0.10
Fast Company has established the following overhead cost pools and cost drivers for the month of May: Cost Pool Overhead Costs Cost Driver Levels Purchase orders $ 11,280 20 orders Machine setups 49,000 100 setups Electricity 30,000 30,000 kilowatt hours The following information pertains to the actual consumption of activity resources for two sample jobs completed during May. Job M1 Job M2 Number of units produced 510 1,020 Number of purchase orders 15 10 Number of setups 25 10 Number of kilowatt hours 510 1,020 What is the activity-based overhead rate per purchase order?
Proctor has a policy of holding no inventories of any kind. Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield variances. Complete this question by entering your answers in the tabs below. Required A Required B Saved Compute materials price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Materials price variance Materials efficiency variance X-1 Y-7 Required A Required B > Total
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
Collin Company manufactures small appliances and uses an activity-based costing system. Information from its system for the year for all products follows: Activity cost pool Total cost Total activity. Assembly Inspection Packaging $460,000 $298,500 $19,700 A. $139,977.76 B. $115,566.24 C. $23,187.50 D. $26.50 20,000 8,500 1,800 machine - hours inspection - hours order The company makes 875 of its stand mixers a year, which requires a total of 27 machine hours, 15 inspection hours, and 9 orders. The stand mixer requires $16.00 in direct materials per unit and $10.50 in direct labor per unit. The stand mixer sells for $160 per unit. What is the profit margin in total for the stand mixer? (Do not round intermediary calculations and round your final answer to the nearest cent.)
Max Company has developed the following standards for one of its products: Direct materials 15 pounds ´ £16 per poundDirect labour 4 hours ´ £24 per hourVariable overhead 4 hours ´ £14 per hour The following activities occurred during the month of October: Materials purchased 10,000 pounds costing £170,000Materials used 7,200 poundsUnits produced 500 unitsDirect labour 2,300 hours at £23.60 per hourActual variable overhead £30,000 The company records materials price variances at the time of purchase. Refer to Figure 17-1. Max's variable standard cost per unit would be
Assume that Swifty has identified three activity cost pools.
86 Finch Cameras, Incorporated manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Finch uses an activity-based costing system. The following are the relevant cost data for the previous month: Direct Cost per Unit Direct materials Direct labor Category Unit level Batch level Product level Facility level Total Estimated Cost $ 24,000 47,000 87,500 270,000 $ 428,500 Model 2M Model DS $ 10.50 13.00 $ 20.50 29.00 Cost Driver Number of units Number of setups Number of TV commercials Number of machine hours Amount of Cost Driver ZM: 2,450 units; DS: 9,550 units ZM: 25 setups; DS: 25 setups ZM: 14; DS: 11 ZM: 500 hours; DS: 1,000 hours Finch's facility has the capacity to operate 4,500 machine hours per month. Required a. Compute the cost per unit for each product. b. The current market price for products comparable to Model ZM is $129 and for DS is $80. If Finch sold all of its products at the market prices, what was its profit or loss for the previous…