Activity-Based Costing and IV. Multiple Choice Items I through 10 are based on the following information. Wonders Inc. manufactures radios in two different styles: Annual Sales in Units Radio Model Starry Polka 10,000 16,000 Wonders uses a traditional volume-based costing system in applying factory overhead using direct labor pesos. The unit prime costs of each product were as follows: Starry Polka P25.40 Direct materials Direct labor: 1.2 x P14.60= 0.9 x P14.60 P38.00 17.52 13.14 The predetermined overhead rate was 350% (P1.349,040 +385,440). Direct labor budget per annual sales: Starry radio Polka radio Total PI75,200 210.240 P385,440 10.000 x P17.52 16,000 x P13.14 Factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total P 404,712 269,808 539,616 134,904 PL,349,040 Wonders' controller had been resecarching activity-based costing and decided to switch to it. A special study determined Wonders' two radio models were responsible for the following proportions of each cost driver: Starry Polka 60% 55% 40% 65% Engineering and Design Quality Control Machinery Miscellaneous Overhead 40% 45% 60% 35%
Activity-Based Costing and IV. Multiple Choice Items I through 10 are based on the following information. Wonders Inc. manufactures radios in two different styles: Annual Sales in Units Radio Model Starry Polka 10,000 16,000 Wonders uses a traditional volume-based costing system in applying factory overhead using direct labor pesos. The unit prime costs of each product were as follows: Starry Polka P25.40 Direct materials Direct labor: 1.2 x P14.60= 0.9 x P14.60 P38.00 17.52 13.14 The predetermined overhead rate was 350% (P1.349,040 +385,440). Direct labor budget per annual sales: Starry radio Polka radio Total PI75,200 210.240 P385,440 10.000 x P17.52 16,000 x P13.14 Factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total P 404,712 269,808 539,616 134,904 PL,349,040 Wonders' controller had been resecarching activity-based costing and decided to switch to it. A special study determined Wonders' two radio models were responsible for the following proportions of each cost driver: Starry Polka 60% 55% 40% 65% Engineering and Design Quality Control Machinery Miscellaneous Overhead 40% 45% 60% 35%
Chapter1: Financial Statements And Business Decisions
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Transcribed Image Text:IV. Multiple Choice
İtems I through 10 ore based on the following information.
Wonders Inc. manufactures radios in two different styles.
Annual Sales
in Units
Radio Model
10.000
Starry
Polka
16,000
Wonders uses a traditional volume-based costing system in applying factory
overhead using direct labor pesos. The unit prime costs of each product
were as follows:
Starry
Polka
Direct materials
P38.00
P25.40
Direct labor:
1.2 x P14.60=
0.9 x P14.60-
17.52
13.14
The predetermined overhead rate was 350% (P1.349,040 + 385,440).
Direct labor budget per annual sales:
Starry radio
Polka radio
Total
P175.200
210.240
P385,440
10,000 x P17.52
16,000 x P13.14
Factory overhead:
Engineering and Design
Quality Control
Machinery
Miscellaneous Overhead
Total
P 404,712
269,808
539,616
134,904
PL,349,040
Wonders' controller had been rescarching activity-based costing and decided
to switch to it. A special study determined Wonders' two radio models were
responsible for the following proportions of each cost driver:
Engineering and Design
Quality Control
Machinery
Miscellaneous Overhead
Starry
40%
45%
60%
35%
Polka
60%
55%
40%
65%
Transcribed Image Text:302
Chapter 9
1.
Starry model is calculated to be:
P61.32.
b.
P43.42.
P45.99.
с.
a.
d.
P65.43.
sng traditional costing, applied factory overhead per unit for the
Polka model is calculated to be:
P61.32.
b.
2.
P43.42.
P45.99.
a.
с.
P65.43.
d.
Using activity-based costing, applied factory overhead per unit for the
Starry model, based on Engineering and Design, is calculated to be:
3.
P32.38.
P16.19.
a.
с.
b. P12.14.
d.
P 4.72.
Using activity-based costing, applied factory overhead per unit for the
Starry model, based on Quality Control, is calculated to be:
P32.38.
b.
4.
Activity-Based Costing and Management
303
a.
C.
P16.19.
PI5.18.
b.
P12.14.
d.
P 4.72.
a.
P 5.48.
P13.49.
c.
P 9.27.
d.
5.
Using activity-based costing, applied factory overhead per unit for the
Starry model, based on Machinery, is calculated to be:
Р32.38.
b.
10.
Using activity-based costing, applied factory overhead per unit for the
Starry model, based on Miscellaneous Overhead, is calculated to be:
P15.18.
a.
с.
P16.19.
P12.14.
a.
P 5.48.
c.
Using activity-based costing, applied factory overhead per unit for the
d.
P 4.72.
P 9.27.
6.
b.
d.
P13.49.
Starry model, based on Miscellaneous Overhead, is calculated to be:
Items 11 through 14 are based on the following information.
P32.38.
P12.14. .
a.
с.
P16.19.
b.
d.
It has outlined the following
Shine Co. manufactures laser printers.
overhead cost drivers:
P 4.72.
7.
Using activity-based costing, applied factory overhead per unit for the
Budgeted
Level for Cost
Driver
Polka model, based on Engineering and Design, is calculated to be:
Budgeted
Overhead
Overhead
P15.18.
Overhead
Rate
Cost Driver
Inspections
a.
Cost
Cost Pool
Quality
control
P 9.27.
с.
P 5.48.
P13.49.
b.
d.
P 64.800
1,080
P 60
8.
Using activity-based costing, applied factory overhead per unit for the
Polka model, based on Quality Control, is calculated to be:
a.
P15.18.
b.
P 9.27.
Cc.
P 5.48.
P13.49,
d.
Using activity-based costing, applied factory overhead per unit for the
9.
Polka model, based on Machinery, is calculated to be:
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