Data tableActivityPurchasingAssemblingPackagingAllocation BaseNumber of purchase ordersNumber of partsNumber of finished collarsPrintPredetermined OverheadAllocation Rate$55.00 per purchase order0.30 per part0 22 per collarDone Dusty Dog Collars uses activity-based costing. Dusty's system has the following features:(Click the icon to view the data table.)Each collar has three parts, direct materials cost is $9.00 per collar, and direct labor cost is $3.00 percollar. Suppose Animal Hut has asked for a bid on 25,000 dog collars. Dusty will issue a total of 200purchase orders if Animal Hut accepts Dusty's bidRead the requirements.Requirement 1. Compute the total cost Dusty will incur to purchase the needed materials and thenassemble and package 25.000 dog collars. Also compute the cost per collar. (Round the total cost tothe nearest dollar and the cost per collar to the nearest centTotal manufacturing costESSE)Manufacturing cost per collar

Lets understand the basics.Total costs for the product is all cost that are incurred to product…

Activity Purchasing Assembling Packaging Allocation Base Number of purchase orders Number of parts Number of finished collars Predetermined Overhead Allocation Rate $55.00 per purchase order 0.30 per part 0.22 per collar

Activity Purchasing Assembling Packaging Allocation Base Number of purchase orders Number of parts Number of finished collars Predetermined Overhead Allocation Rate $55.00 per purchase order 0.30 per part 0.22 per collar

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 7P: Distribution of service department costs to production departments using the sequential distribution...

See similar textbooks

Related questions

Q: Activity Cost Pool Cost Driver Estimated Overhead Use per Product A Use per Product B Machine Setups…

A: given Activity Cost Pool Cost Driver Estimated Use per Use per Overhead Product A Product B…

Q: Activity Cost Pools Customer Product Customer Total Cost Orders Development Relations Other Total…

A: For allocating the cost pools we will multiply the percentage of Activity cost pools with the amount…

Q: Activity Allocation Base Predetermined Overhead Allocation Rate Materials handling Number of parts…

A: Activity-based costing (ABC) is a costing method used to assign costs to products, services or…

Q: Trimming Molding 52,000 DLH 30,500 MH $732,000 48,000 DLH 3,600 MH $592,000 Direct labor hours…

A: Activity Based Costing is the method of costing of assigning overheads and indirect cost on the…

Q: Following is information about the assembly department of a company: 1. 2. 3. 4. 5. There were…

A: Process Costing : Operation costing method employed to determine the value of a product at each…

Q: Prepare the November 30 Journal entry to record the transfer of costs from the Assembly department…

A: The journal entries are prepared to record the transactions on regular basis. The cost of goods…

Q: Zeus Industries manufactures two types of electrical power units, custom and standard, which involve…

A: in activity-based costing, various activity rates are calculated and used to assign overhead costs…

Q: Sheffield Company has 2,080 pounds of raw materials in its December 31, 2021, ending inventory.…

A: Direct Material Budgets are prepared in order to identify the future expected cash outflows for the…

Q: A company makes a product R, which requires one each of two first-level components, 5 and T. Routing…

A: Standard hours capacity is set according to the ability of a particular machine in a process…

Q: ncoming material inspection n-process inspection "roduct certification Type of material Number of…

A: Product Costing System The costs incurred in the manufacturing of a product are referred to as its…

Q: November costs incurred: Direct materials Direct labour Manufacturing overhead December costs…

A: Job105106107TotalDM $ 20,100 $ 12,900 $ 33,000DL $ 16,600 $ 10,600 $…

Q: Bonita Company's sales budget projects unit sales of part 1982 of 9,000 units in January, 10,600…

A: In this question, we need to prepare: Production Budget for the months of January and February.…

Q: Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is…

A: Joint costs means the costs incurred in producing multiple products simultaneously from the same raw…

Q: Compute the conversion cost per equivalent unit for the Production department using the…

A: FIFO means the item which is received first will be sold out first. LIFO means the item which is…

Q: Exercise 22-5 (Algo) Departmental expense allocations LO P2 Renata Company has four departments:…

A: Activity-based costing is used to distribute the overhead. Using ABC, overheads are allocated on the…

Q: GLO301 - Based on Problem 3-5A (Algo) LO P3, P4 Drake Company manufactures soccer balls in two…

A: Answer: Cost of Goods Manufactured is a schedule or statement that shows the total production costs…

Q: Activity Rates and Product Costs Using Activity-Based Costing BriteLite Inc. manufactures entry and…

A: Activity-based costing is used to allocate the overhead expenses on the basis of different…

Q: eBook Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and…

A: Activity rate :— It is the rate used to apply allocate manufacturing overhead to cost object under…

Q: Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory…

A: Activity-based costing is used to allocate the indirect cost to the products or cost objects. Under…

Q: ost of Materials Issuances Under the FIFO Method n incomplete subsidiary ledger of materials…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: Computing EUP—FIFO method Brian’s, Frozen Pizzas uses FIFO process costing. Selected production and…

A: Requirement 1 a: When beginning work in process is already 75% complete as regards to material and…

Q: Question 3: Process Costing Cannondale Bicycle Company manufactures various lines of bicycles.…

A: Equivalent units in ending WIP = Units of ending WIP * % of completion

Q: Overheads cost analysis R Production 4 400 000 Materials handling 1 000 000 Set-up 1 050 000…

A: Overhead costs are operating costs of business which can not be directly traced to a particular unit…

Q: Eilers Company has two producing departments and two support departments. The following budgeted…

A: There are 3 methods to allocate support department costs:- Direct method Step method Reciprocal…

Q: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The…

A: Note : As per our guidelines we are supposed to answer only 3 sub parts. Since you have posted a…

Q: Units Work in Process Beginning inventory, April 1 8,000 Added to production 45,000…

A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Q: Beginning work in process inventory Units started this period Completed and transferred out Ending…

A: Answer:- WEIGHTED AVERAGE METHOD :— Under this method, equivalent units is calculated by adding…

Q: Cost Report, Value-Added and Non-Value-Added Costs Sanford, Inc., has developed value-added…

A: Cost report is described as a summary report which contains information regarding the costs incurred…

Q: Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1)…

A: In the manufacturing organization, there are mainly two methods popular for the cost allocation, the…

Q: Bowie Inc., a manufacturer of earnings, has accumulated the following cost information for products…

A: Activity based costing is one of the indirect costs or overhead costs allocation system under which…

Q: Prepare a physical unit flow reconciliation with the following information. Blending Process…

A: The fundamental purpose of physical unit flow reconciliation is to discover and correct differences…

Q: Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent…

A: Activity based costing system: It is precise method of allocation of overhead to the products. Under…

Q: Required: How much total overhead cost would be assigned to K425 and M67

A: Activity-based costing: Activity-based costing is the method of costing which is used to assign…

Q: G. H. B. Process Cost Practice Quiz Part 1 The following information is related to the blending…

A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Q: Beginning work in process inventory Units started this period Beginning work in process Direct…

A: WEIGHTED AVERAGE METHOD:— Under this method, equivalent units are calculated by adding equivalent…

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Data table
Activity
Purchasing
Assembling
Packaging
Allocation Base
Number of purchase orders
Number of parts
Number of finished collars
Print
Predetermined Overhead
Allocation Rate
$55.00 per purchase order
0.30 per part
0 22 per collar
Done

Dusty Dog Collars uses activity-based costing. Dusty's system has the following features:
(Click the icon to view the data table.)
Each collar has three parts, direct materials cost is $9.00 per collar, and direct labor cost is $3.00 per
collar. Suppose Animal Hut has asked for a bid on 25,000 dog collars. Dusty will issue a total of 200
purchase orders if Animal Hut accepts Dusty's bid
Read the requirements.
Requirement 1. Compute the total cost Dusty will incur to purchase the needed materials and then
assemble and package 25.000 dog collars. Also compute the cost per collar. (Round the total cost to
the nearest dollar and the cost per collar to the nearest cent
Total manufacturing cost
ESSE)
Manufacturing cost per collar

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Understanding of activity based costing

VIEW

Step 2: Calculation of total costs

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How do I find the product cost per unit?
Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $75,000 and for Purchasing is $58,300. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. Department Books Magazines Newspapers Total Sales $ 150,000 84,000 66,000 $ 300,000 Purchase Orders 1,680 945 875 3,500 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information.
Savee Assume the following information: Hours Queue time Wait time 40 24 2. 2. Process time Move time Inspection time 4. The monufocturing cycle efficiency (MCE) is closest to: Multiple Cholce 0.24 0.40. 0.02 0.04.
1. Assign Overhead Costs to Activity Cost Pools 国日 First-Stage Allocation to Activity Cost Pools - Excel Sign In FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri -A A 10 Paste BIU - A - Alignment Number Conditional Format as Cell Cells Formatting - Table - Styles - Clipboard Font Styles A1 fx A C E F G 1 == 2 Total costs and distribution of resource consumption across activity cost pools: 3 4 Activity Cost Pools Customer Product Customer Total Cost Orders Development Relations Other Total 6 Production Department: 7 Indirect factory wages $ 400,000 50% 30% 15% 5% 100% Factory equipment depreciation Factory utilities 10 Factory property taxes and insurance 8 150,000 55% 30% 0% 15% 100% 9 120,000 59% 34% 0% 7% 100% 75,000 57% 33% 0% 10% 100% 11 12 General Administrative Department: Administrative wages and salaries Office equipment depreciation 13 275,000 20% 10% 40% 30% 100% 14 40,000 32% 16% 15% 37% 100% 15 Administrative property taxes and insurance 60,000 0% 0% 0% 100%…
ss
Please do not give solution in image format thanku
Hh1. Account
DOCUMENT FLOWCHARTPrepare a flowchart that illustrates the sequence in which the followingsource documents are prepared.a. Bill of materialsb. Sales forecastc. Materials requisitiond. More tickete. Production schedulef. Route sheetg. Work orde
Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities-production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities: Activity Activity Cost Activity Base Production setup $ 97,500 Number of setups Procurement 137,500 Number of purchase orders (PO) Quality control 187,500 Number of inspections Materials management 100,000 Number of components Total $522,500 The activity-base usage quantities for each product are as follows: Purchase Setups Inspections Components Unit Volume Orders Custom 500 1,150 2,300 300 1,000 Standard 250 100 200 200 1,000 Total 750 1,250 2,500 500 2,000 a. Determine an activity rate for each activity. Activity Rates Production Setup Procurement Quality Control Materials Management Activity cost - Activity base Activity rate $4 /setup /PO $ /inspection…
G. H. B. Process Cost Practice Quiz Part 1 The following information is related to the blending department: 1. 1,900 units in beginning WIP, 60X completed as to conversion costs 2. Direct Materials added: 22,000 units 3. Goods completed and transterred total 21,800 units 4. All materials are added at the beginning of the process. 5. Beginning WIP was $7,657 10 6. Cost of DMadded during the month: $77,000 7. Cost of DL added during the month: $14,200 8. Factory overhead applied during the month: $6,880 13 9. Ending WIP inventory is 20% completed as to conversion costs 14 15 12 Required. 16 1 Compute total units to be assigned costs 2. Compute Group 1-3 whole units and equivalent units 18 R.Compute cost per equivalent unit for materials and conversion costs 18 4. Using cost per equivalent unit above, determine (A) cost transferred 20 21 22 out of WIP to next department and (B) cost assigned to ending WIP VIP- Blending Dept. 23 Units Units 24 25 26 Beginning 27 28 23 DM 30 31 32 DL 33 34…
Insurance Department Materials Personnel Manufacturing Packaging Totals Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost
prepare process costing production report using : -FIFO -Weighted average