Activity data have been supplied for the following two products:Number of units produced per year.Direct labor-hoursMachine-hoursMachine setupsProduction ordersShipmentsProduct sustainingActivity Cost PoolSupporting direct laborMachine processingMachine setupsProduction ordersShipmentsProduct sustainingTotal overhead costK425Total Expected ActivityK425M672,000M672009252,6001313263Required:How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?wwww384030 Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4]Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains thefollowing six activity cost pools and activity rates:Activity Cost PoolSupporting direct laborMachine processingMachine setupsProduction orders.ShipmentsProduct sustainingNumber of units produced per yearDirect labor-hoursMachine-hoursActivity Rates.$10 per direct labor-hour$3 per machine-hour$ 125 per shipment$ 775 per productActivity data have been supplied for the following two products:Machine setupsProduction ordersShipmentsProduct sustaining$ 35 per setup$160 per order.Total Expected ActivityK425M672009252,6001313.263,0004030333Required:How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

Name: Activity data have been supplied for the following two products:Numbe
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Description: Activity data have been supplied for the following two products:Number of units produced per year.Direct labor-hoursMachine-hoursMachine setupsProduction ordersShipmentsProduct sustainingActivity Cost PoolSupporting direct laborMachine processingMac

The overhead costs are the indirect costs incurred for the production. The overhead is applied to…

Business

Accounting

Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor K425 Total Expected Activity K425 M67 2,000 M67 200 925 2,600 13 13 26 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 3 40 30 3 3 3

Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor K425 Total Expected Activity K425 M67 2,000 M67 200 925 2,600 13 13 26 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 3 40 30 3 3 3

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A Company has a single production process and it manufactures three products A, B and C by same pant & same process. The overheads & relevant costs drivers for a period are as follows: Data for the period: Fashed goods in units. Raw materiais required per unit of output Orect labor hour per unit of output.. Machine hour per unit of output.. Ne of production runs per product.. cost Short-term-variable are expenses Set-up-cost... Serial handling cost Products Activities A 7,000 4kg 14 Cost drivers Machine hours Direct labor hours Production runs Qty of materials (kgs.) Total B 5,000 3kg 3 10 C 3,000 2kg 3 2 Overheads(Rs.) 58,800 66,600 24,000 29,400 Rs.1,78,800 Required: Overheads per unit under: Machine hour rate b. Activity based costing Ans. a. Rs. 14.596 per unit, Rs. 10.947 per unit, Rs. 7.298 per unit b. Rs. 13.3 per unit, Rs. 12.4 per unit, 7.9 per unit Cor under:
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Question 1: The Information below is taken from production department of MSS Company for April: The number of units produced is 10000. All amounts are in $. Total Costs Variable Cost Fixed Cost Direct material cost 500000 ? ? Total labor cost ? 400000 100000 Manufacturing Overhead 90000 30000 ? Calculate: Find the missing information in the above table. Some values may not be applicable, explain. Calculate cost per unit Describe the production costs in the equation form Y = f + vX. Assume Salalah intends to produce 10000 units next month. Calculate total production costs for the month
Given the following information, determine the product cost of one unit: Direct Materials = $60; Direct labor = $10; Apply Overhead based on $2 per Direct Labor hour; Direct labor hours is 4 hours per unit. a. $70 per unit b. $80 per unit c. $78 per unit d. $85 per unit Contribution margin is sales less: a. Fixed overhead and fixed selling and administrative expenses b. Variable Cost of goods sold and variable selling & administrative expenses c. Variable selling and administrative expemses and Fixed selling and administrative expenses d. variable cost of goods sold An investment generates an operating income of $100,000, and the average operating assets are $400,000. What is the return on the investment? a. 100% b. 75% c. 25% d. 20%
S ipped Book erences Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Mercon $ 10.00 Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced $ 3.00 0.20 10,000 These products are customized to some degree for specific customers. Wurcon $ 8.00 $ 3.75 0.25 40,000 Required: 1. The company's manufacturing overhead costs for the year are expected to be $336,000. Using the company's conventional costing system, compute the unit product costs for the two products. 2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year: 1.…
Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost Activity Rates $9 per direct labor-hour $3 per machine-hour $45 per setup $150 per order $ 130 per shipment $ 875 per product K425 0 $ Total Expected Activity K425 M67 2,000 M67 200 1,000 2,800 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 0 7 7 14 2 50 40 2 NNNN 2
Volume-based method of overhead cost allocation Required: -Allocate costs to products on the basis of labour hours -Over head cost rate = - Please write the formula or equation
A company has the following overhead costs and activities: Estimated Expected Activity Product V Product W Product X Overhead Activities and Activity Measures Machine setups (setups) Processing customer orders (orders) Assembling products (assembly-hours) $9,178.00 Cost S7,234.50 $3,565.50 69 12 10 20 21 492 697 111 4. A company sells two products, one with sales of $10,000 and variable expenses of $2,500, another with sales of $46,000 and variable expenses of $15,420. Fixed expenses are $33,100. Breakeven point for the whole company is close to: А. 833,100 В. $22,900 C. $51,020 D. $48,676 A company that reduces the proportion of variable costs in its cost structure will: A. enjoys higher stability in profits. B. increase its profits more when the economy is good. C. have a loss more easily when the economy is bad. D. be indifferent. 5. 6. is normally recorded on any financial statement but irrelevant in decision making which is not. A. Sunk cost B. Incremental cost C. Differential…