Activity Assembly building Assembling Setting up macies Handling material Packaging building Inspecting and packing Shipping LUST UPiver VOLUME Cost Driver Sport Pro Total Machine-hours 6,000 30,000 36,000 Setup hours 40 400 440 Production runs 8 40 48 Direct labor-hours 60,000 22,800 Number of shipments 100 200 82,800 300 Third Quarter Unit Cost Report, Activity-Based Costing-CenterPoint Manufacturing Facility Direct material Direct labor Assembly Packaging Total direct labor Direct costs Overhead Assembly building Sport $1,500,000 $ 750,000 990,000 $ 1,740,000 $ 3,240,000 $ 180,000 36,000 24,000 300,000 132,000 $ 672,000 $ 3,912,000 Pro $ 2,400,000 $ 600,000 360,000 $960,000 $ 3,360,000 $ 900,000 360,000 120,000 114,000 264,000 $ 1,758,000 Assembling (@$30 per MH) Setting up machines (@ $900 per setup hour) Handling material ($3,000 per run) Packaging building Inspecting and packing (@ $5 per direct labor-hour) Shipping (@$1,320 per shipment) Total ABC overhead Total ABC cost Number of units Unit cost Required: a. Compute the amount of overhead allocated to the Sport and the Pro drones for the first quarter using activity-based costing. cost of a setup hour remains at $900. Assume that all events are the same in the first quarter as in the third quarter except for the number of setup hours. Assume the 100,000 $ 39.12 $ 5,118,000 40,000 $ 127.95 Model Sport Pro Total ABC Overhead

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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am.111.

Activity
Assembly building
Assembling
Setting up macies
Handling material
Packaging building
Inspecting and packing
Shipping
LUST UPiver VOLUME
Cost Driver
Sport
Pro
Total
Machine-hours
6,000
30,000
36,000
Setup hours
40
400
440
Production runs
8
40
48
Direct labor-hours
60,000
22,800
Number of shipments
100
200
82,800
300
Third Quarter Unit Cost Report, Activity-Based Costing-CenterPoint Manufacturing Facility
Direct material
Direct labor
Assembly
Packaging
Total direct labor
Direct costs
Overhead
Assembly building
Sport
$1,500,000
$ 750,000
990,000
$ 1,740,000
$ 3,240,000
$ 180,000
36,000
24,000
300,000
132,000
$ 672,000
$ 3,912,000
Pro
$ 2,400,000
$ 600,000
360,000
$960,000
$ 3,360,000
$ 900,000
360,000
120,000
114,000
264,000
$ 1,758,000
Assembling (@$30 per MH)
Setting up machines (@ $900 per setup hour)
Handling material ($3,000 per run)
Packaging building
Inspecting and packing (@ $5 per direct labor-hour)
Shipping (@$1,320 per shipment)
Total ABC overhead
Total ABC cost
Number of units
Unit cost
Required:
a. Compute the amount of overhead allocated to the Sport and the Pro drones for the first quarter using activity-based costing.
cost of a setup hour remains at $900.
Assume that all events are the same in the first quarter as in the third quarter except for the number of setup hours. Assume the
100,000
$ 39.12
$ 5,118,000
40,000
$ 127.95
Model
Sport
Pro
Total ABC
Overhead
Transcribed Image Text:Activity Assembly building Assembling Setting up macies Handling material Packaging building Inspecting and packing Shipping LUST UPiver VOLUME Cost Driver Sport Pro Total Machine-hours 6,000 30,000 36,000 Setup hours 40 400 440 Production runs 8 40 48 Direct labor-hours 60,000 22,800 Number of shipments 100 200 82,800 300 Third Quarter Unit Cost Report, Activity-Based Costing-CenterPoint Manufacturing Facility Direct material Direct labor Assembly Packaging Total direct labor Direct costs Overhead Assembly building Sport $1,500,000 $ 750,000 990,000 $ 1,740,000 $ 3,240,000 $ 180,000 36,000 24,000 300,000 132,000 $ 672,000 $ 3,912,000 Pro $ 2,400,000 $ 600,000 360,000 $960,000 $ 3,360,000 $ 900,000 360,000 120,000 114,000 264,000 $ 1,758,000 Assembling (@$30 per MH) Setting up machines (@ $900 per setup hour) Handling material ($3,000 per run) Packaging building Inspecting and packing (@ $5 per direct labor-hour) Shipping (@$1,320 per shipment) Total ABC overhead Total ABC cost Number of units Unit cost Required: a. Compute the amount of overhead allocated to the Sport and the Pro drones for the first quarter using activity-based costing. cost of a setup hour remains at $900. Assume that all events are the same in the first quarter as in the third quarter except for the number of setup hours. Assume the 100,000 $ 39.12 $ 5,118,000 40,000 $ 127.95 Model Sport Pro Total ABC Overhead
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