Do not give answer in image Direct materialDirect laborManufacturing overhead @ $46 per machine hourCost if purchased from an outside supplierAnnual demand (units)Blender$1811466534,000Mixer$28399213340,000Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $23Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers.Required:1. If 72,000 machine hours are available, and management desires to follow an optimal strategy, how many units of each productshould the firm manufacture? How many units of each product should be purchased?2. With all other things constant, if management is able to reduce the direct material for an electric mixer to $18 per unit, how manyunits of each product should be manufactured? Purchased?Complete this question by entering your answers in the tabs below.Required 1 Required 2If 72,000 machine hours are available, and management desires to follow an optimal strategy, how many units of eachproduct should the firm manufacture? How many units of each product should be purchased? Complete this question by entering your answers in the tabs below.Required 1 Required 2If 72,000 machine hours are available, and management desires to follow an optimal strategy, how many units of eachproduct should the firm manufacture? How many units of each product should be purchased?ManufacturePurchaseBlenderManufacturePurchaseMixerBlenderRequired 1With all other things constant, if management is able to reduce the direct material for a electric mixer to $18 per unit, howmany units of each product should be manufactured? Purchased?Note: Round your intermediate calculations to 2 decimal places.MixerRequired 2 >< Required 1(Required 2 >

To decide whether the product must be purchased or manufactured , the total relevant manufacturing…

an outside supplier 65 34,000 133 40,000 that the fixed manufacturing overhead component included in the cost per machine hour averages $ ement has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. are available, and management desires to follow an optimal strategy, how many units of each product ture? How many units of each product should be purchased? stant, if management is able to reduce the direct material for an electric mixer to $18 per unit, how man ould be manufactured? Purchased?

an outside supplier 65 34,000 133 40,000 that the fixed manufacturing overhead component included in the cost per machine hour averages $ ement has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. are available, and management desires to follow an optimal strategy, how many units of each product ture? How many units of each product should be purchased? stant, if management is able to reduce the direct material for an electric mixer to $18 per unit, how man ould be manufactured? Purchased?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...

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Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
Activity-based costing and product cost distortion The management of Four Finger Appliance Company in Exercise 14 has asked you to use activity-based costing instead of direct labor hours to allocate factory overhead costs to the two products. You have determined that 81,000 of factory overhead from each of the production departments can be associated with setup activity (162,000 in total). Company records indicate that blenders required 135 setups, while the toaster ovens required only 45 setups. Each product has a production volume of 7,500 units. Determine the three activity rates (assembly, test and pack, and setup). Determine the total factory overhead and factory overhead per unit allocated to each product using the activity rates in (A).
Variable and Fixed Costs What follows are a number of resources that are used by a manufacturer of futons. Assume that the output measure or cost driver is the number of futons produced. All direct labor is paid on an hourly basis, and hours worked can be easily changed by management. All other factory workers are salaried. a. Power to operate a drill (to drill holes in the wooden frames of the futons) b. Cloth to cover the futon mattress c. Salary of the factory receptionist d. Cost of food and decorations for the annual Fourth of July party for all factory employees e. Fuel for a forklift used to move materials in a factory f. Depreciation on the factory g. Depreciation on a forklift used to move partially completed goods h. Wages paid to workers who assemble the futon frame i. Wages paid to workers who maintain the factory equipment j. Cloth rags used to wipe the excess stain off the wooden frames Required: Classify the resource costs as variable or fixed.
Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Caseys Kitchens makes two types of food smokers: Gas and Electric. The company expects to manufacture 20,000 units of Gas smokers, which have a per-unit direct material cost of $15 and a per-unit direct labor cost of $25. k also expects to manufacture 50,000 units of Electric smokers, which have a per-unit material cost of $20 and a per-unit direct labor cost of $45. Historically, it has used the traditional allocation method and applied overhead at a rate of $125 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is as follows: The cost driver for each cost pool and its expected activity is as follows: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing? C. Compared to ABC costing, was each products overhead under- or over applied? D. How much was overhead under- or over applied for each product?
Help Save & Exit Gesualdo, Incorporated, manufactures and sells two products: Product Z6 and Product F4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product Z6 Product F4 Total direct labor-hours Direct Materials Cost per Unit $ 101.00 $ 217.20 Activity Cost Pools. Labor-related 300 600 Machine setups Order size Direct Labor- Total Direct Expected Hours Per Labor- Production Unit Hours 8.0 11.0 The direct labor rate is $24.70 per DLH. The direct materials cost per unit for each product is given below: Product Z6 Product F4 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Product F4 6,600 600 3,500 Activity Measures DLHs setups MHS Saved Estimated Overhead Cost $ 98,640 18,711 388,360 $ 505,711 2,400 6,600 9,000 als Handling Costs Submit
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 the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Number of units produced per year Direct labor-hours Activity Rate $ 11 per direct labor-hour $5 per machine-hour $ 45 Production orders Shipments $ 120 per shipment Product sustaining $ 900 per product Activity data have been supplied for the following two products: Machine-hours Machine setups Production orders Shipments Product sustaining per setup $ 160 per order Total Expected Activity K425 M67 2,000 200 1,025 2,600 7 7 14 3 50 40 3 3 3 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
Saved Help Sav CH 07 i Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system cont following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Activity Rates $6 per direct labor-hour $ 4 per machine-hour $ 50 per setup $ 90 per order $ 14 per shipment $ 840 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year Direct labor-hours 200 2,000 80 500 Machine-hours Machine setups Production orders 100 1,500 1 4 4 Shipments Product sustaining 1 10 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? DELL F3 prt sc home end F4 F5 F6
< Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Expected Cost Activity Driver Activity Capacity Number of setups Number of orders Activity Setting up equipment Ordering costs Machine costs Receiving Receiving hours Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Receiving hours $464,550 Required: 336,300 747,000 424,200 Model A Machine hours $604,000 498,000 17,000 5,800 410 Model B $804,000 456,000 8,700 1,500 6,200 23,500 3,800 The company's normal activity is 7,300 direct labor hours. 160 11,500 18,000 6,300 570 17,700 41,500 10,100 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent.
Direct materials Direct labor Variable factory overhead Fixed manufacturing overhead Fixed non-manufacturing overhead Purchase price of 18,000 monitors Differential cost to make: Direct materials Direct labor Total cost of producing 18,000 monitors $ 2,160,000 1,224,000 630,000 504,000 756,000 $ 5,274,000 Overhead Make or Buy Decisions Differential Analysis Report Unit cost You are asked to look over the intern's estimate before the information is shared with members of management them. The company's controller believes that the estimate may be incorrect because it includes costs that are n force currently employed in producing the monitors will be terminated and there would be no termination costs to suppliers to purchase materials, so all materials would need to be purchased to make the monitors. Variable manufacturing overhead costs would be reduced by $55,000, but non-manufacturing costs would remain the sa Fill in the differential analysis. Differential income (loss) from making…
Desjarlais Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Activity Rate Setting up batches $ 83.25 per batch Assembling products $ 13.88 per assembly hour Processing customer orders $ 61.41 per customer order Data concerning two products appear below: Product S96U Product Q06F Number of batches 33 45 Number of assembly hours 104 844 Number of customer orders 16 33 Required: a. How much overhead cost would be assigned to Product S96U using the company's activity-based costing system? (Round your intermediate calculations and final answer to 2 decimal places.) b. How much overhead cost would be assigned to Product Q06F using the company's activity-based costing system? (Round your intermediate calculations and final answer to 2 decimal places.)
Schwiesow Corporation has provided the following information: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions. Variable administrative expense Fixed selling and administrative expense Multiple Choice If 3,500 units are produced, the total amount of manufacturing overhead cost is closest to: $11,550 $16,050 $7,050 Cost per Unit $ 7.70 $ 3.60 $ 1.30 $21,650 $ 1.00 $ 0.50 Cost Per $ 11 $6