Actual Usage (by Plate Cutting) Driver Rate S 732,000 Direct labor cost Inspection hours Purchase orders 150% of direct labor S40 per hour S1,000 per order 7,450 hours 800 orders Other data for the Plate Cutting Department are as follows: Beginning work in process Units started 750,000 Direct materials cost Units, ending work in process (100% materials; 64% conversion) $6,000,000 50,000
Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory,
Activity-Based Costing
Lacy, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassemblies are produced in three departments: Plate Cutting, Rod Cutting, and Welding. Materialsare added at the beginning of the process. Overhead is applied using the following drivers and
activity rates:
Required:
1. Prepare a physical flow schedule.
2. Calculate equivalent units of production for:
a. Direct materials
b. Conversion costs
3. Calculate unit costs for:
a. Direct materials
b. Conversion costs
c. Total manufacturing
4. Provide the following information:
a. The total cost of units transferred out
b. The
c. The cost assigned to units in ending inventory
![Actual Usage (by Plate
Cutting)
Driver
Rate
S 732,000
Direct labor cost
Inspection hours
Purchase orders
150% of direct labor
S40 per hour
S1,000 per order
7,450 hours
800 orders
Other data for the Plate Cutting Department are as follows:
Beginning work in process
Units started
750,000
Direct materials cost
Units, ending work in process (100%
materials; 64% conversion)
$6,000,000
50,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbbfe1bde-0ba5-470a-be27-bf3b109052b3%2Fbf27a073-5268-443a-883b-3ddf2f62383b%2F0pkzx6m_processed.png&w=3840&q=75)
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