Activity Cost PoolMachiningMachine setupsProduct designMultiple ChoiceO$205,000Activity ReasureMachine-hoursNumber of setupsNumber of productsUsing the ABC system, how much overhead cost would be assigned from the Machining cost pool to Pro$198,000$225,000$249,00080Activity ReasureMachine-hoursNumber of setupsNumber of productsF3Product A9,000501Product B6,0001501888Cost$ 300,000$ 150,000$ 78,000F4Expected Activity12,000 01200 Setups2 Products< PrevCenerente.5 of 3

Name: Activity Cost PoolMachiningMachine setupsProduct designMultiple Choic
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Description: Activity Cost PoolMachiningMachine setupsProduct designMultiple ChoiceO$205,000Activity ReasureMachine-hoursNumber of setupsNumber of productsUsing the ABC system, how much overhead cost would be assigned from the Machining cost pool to Pro$198,000$

Activity-Based Costing (ABC) is a costing methodology that assigns overhead costs to specific…

Business

Accounting

Activity Cost Pool Machining Machine setups Product design Activity Reasure Machine-hours Number of setups Number of products Product A 9,000 Product B 6,000 150 1 50 1 Cost $ 300,000 $ 150,000 $ 78,000 Expected Activity 12,000 11 Activity Reasure. Machine-hours Number of setups Number of products Using the ABC system, how much overhead cost would be assigned from the Machining cost pool to Pro 200 Setups 2 Products

Activity Cost Pool Machining Machine setups Product design Activity Reasure Machine-hours Number of setups Number of products Product A 9,000 Product B 6,000 150 1 50 1 Cost $ 300,000 $ 150,000 $ 78,000 Expected Activity 12,000 11 Activity Reasure. Machine-hours Number of setups Number of products Using the ABC system, how much overhead cost would be assigned from the Machining cost pool to Pro 200 Setups 2 Products

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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Riverbed Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below: Activity Cost Pools Ordering and Receiving Machine Setup Machining Assembly Inspection Budget $ Cost Driver Orders Setups Machine hours Deluxe $ Parts Inspections Overhead cost per unit Est. Overhead $144,000 311,400 1,023,000 1,624,000 314,000 per unit Est. Use of Cost Drivers Budget per unit 600 500 150,000 1.200,000 550 Deluxe 400 Compute the overhead cost per unit for each product. Production is 700.000 units of Budget and 200.000 units of Deluxe. (Round per machine hour and per part values to 3 decimal places, eg 52.711. Round overhead cost per unit to 2 decimal places, e.g. 12.25 and cost assigned to 0 decimal places, eg. 2,500.) 400 100,000 800,000 450
Required information Greenwood Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Expected Activity 11, 000 MHS 270 setups Estimated Overhead Cost Activity Cost Pool Activity Measure 227, 700 153, 900 Machine-hours Number of setups Number of products Direct labor- %$4 Machining Machine setups Production design 91,000 2 products General factory 257,000 10, 000 DLHS hours Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y 8, 700 60 Product Z 2, 300 210 1 8,700 1,300 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your…
Activity Clerical support Facility services Client consultations Activity usage for each service follows. Activity Cost Driver Documents Billable hours Court dates Budgeted Cost Required 1 Required 2 $ 57,600 20,160 72,800 Activity Clerical support Facility services Client consultations Budgeted Activity Usage 360 documents 2,520 billable hours 28 court dates Activity Usage Litigation 210 920 20 Mediation 150 1,600 8 Required: 1. Compute an activity rate for each activity using activity-based costing. 2. Compute overhead cost per unit (case) for both litigation and mediation using activity-based Total 360 2,520 28 Complete this question by entering your answers in the tabs below. Compute an activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 c Budgeted Cost Budgeted Activity Usage Activity Rate
The following table presents the activities and activity drivers that LampPlus uses in manufacturing Product 1 and Product 2. Complete the table: Activity Design Preparation Machining Finishing Inspection Packaging Shipping Cost Activity Driver $ 39,060 Design time $ 67,650 Labor hours 105,200 Machine hours $ Batches Units Orders $ 12,720 Packages Driver Usage Prod. 1 840 3,130 209 76 Prod. 2 1,330 hours hours 300 56 Activity Rate $ $ $ $ /hour /hour 20 /hour 50 /batch 17 /unit 302 /order /package Activity Cost:Prod. 1 $ $ $ $ 34,430 31,200 Activity Cost:Prod. 2 9,690 $ 12,986 $ 19,720 3,600
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $490,440 Number of setups 610 Ordering costs 313,500 Number of orders 16,500 Machine costs 917,700 Machine hours 43,700 Receiving 382,200 Receiving hours 9,800 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $610,000 $766,000 Direct labor 451,000 499,000 Units completed 15,500 7,000 Direct labor hours 6,400 2,300 Number of setups 360 250 Number of orders 5,400 11,100 Machine hours 24,900 18,800 Receiving hours 2,700 7,100 The company's normal activity is 8,700 direct labor hours. Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final…
Required information Skip to question Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 227,700 11,000 MHs Machine setups Number of setups $ 153,900 270 setups Production design Number of products $ 91,000 2 products General factory Direct labor-hours $ 257,000 10,000 DLHs Activity Measure Product Y Product Z Machining 8,700 2,300 Number of setups 60 210 Number of products 1 1 Direct labor-hours 8,700 1,300 2. Using the plantwide overhead rate, how much manufacturing overhead cost is…
Approximately Relevant ABC Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $132,000 Number of setups 120 Ordering materials 19,800 Number of orders 900 Machining 115,500 Machine hours 10,500 Receiving 26,400 Receiving hours 1,200 Silven produces two models of cell phones with the following expected activity demands: Model X Model Y Units completed 4,000 8,000 Number of setups 80 40 Number of orders 300 600 Machine hours 6,000 4,500 Receiving hours 400 800 Required: 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned Model X Model Y 2. Determine the total overhead assigned to each model using the two most expensive activities. The…
Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $30 per machine hour Assembly $35 per direct labor hour Setup $90 per setup Inspecting $20 per inspection Production scheduling $19 per production order Purchasing $5 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 600 400 Direct labor hours 190 223 Setups 30 30 Inspections 15 25 Production orders 40 30 Purchase orders 318 85 Units produced 500 320 Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. Total…
1.Smith Manufacturing has five activity cost pools and two products (a budget toaster oven and a deluxe toaster oven). Information is presented below: Activity. Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver Orders Setups Machine hours Parts Inspections Est. Overhead $ 130,000 297,000 1,000,000 1,600,000 300,000 Cost Drivers by Product Budget 600 500 150,000 1,200,000 550 Deluxe 400 400 100,000 800,000 450 Instructions Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. Round your answer to the nearest cent.
Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Basic Advanced Total Units produced 110,000 330,000 — Prime costs $9,020,000 $38,280,000 $47,300,000 Machine hours 110,000 550,000 660,000 Engineering hours 400 3,600 4,000 Receiving orders 300 900 1,200 Inspection hours 1,000 2,000 3,000 Overhead costs: Machining $9,900,000 Engineering 2,240,000 Receiving 240,000 Inspecting products 390,000 Required: 1. Calculate the four activity rates. Machining rate 15 Engineering rate 560 Receiving rate 200 Inspecting rate 130 2. Calculate the unit costs using…
Comparing ABC and Plantwide Overhead Cost AssignmentsWellington Chocolate Company uses activity-based costing (ABC). Thecontroller identified two activities and their budgeted costs: Setting up equipment Other overhead $ 432,000 1,440,000 Setting up equipment is based on setup hours, and other overhead isbased on oven hours.Wellington produces two products, Fudge and Cookies. Information oneach product is as follows: Fudge Cookies Units producedSetup hoursOven hours 8,0006,4001,600 445,0001,6008,000 Required:(Note: Round answers to two decimal places.) 1. Calculate the activity rate for (a) setting up equipment and (b)other overhead.2. How much total overhead is assigned to Fudge using ABC?3. What is the unit overhead assigned to Fudge using ABC? 4. Now, ignoring the ABC results, calculate the plantwide overheadrate, based on oven hours.5. How much total overhead is assigned to Fudge using the plantwide overhead rate?6. CONCEPTUAL CONNECTION Explain why the total…