Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Fabricating Assembly Budgeted Cost $ 134,400 124,000 Allocation Base Machine hours (MH) Direct labor hours (DLH) Budgeted Usage 9,600 MH 3,100 DLH Required: 1. Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct la allocate budgeted Assembly costs. 2. The company reports the following actual production usage data. Compute the overhead cost per unit for each model Machine hours per unit EasyRider 3.0 ΜΗ 0.5 DLH Direct labor hours per unit 3. The company reports additional information below. For each model, compute the product cost per unit. Per Unit Voltage EasyRider Voltage 2.0 ΜΗ 1.8 DLH Selling Price $ 276 170 Direct Materials $ 106 96 Direct Labor $ 45 18 4. For each model, compute gross profit per unit (selling price per unit minus product cost per unit).

Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Fabricating Assembly Budgeted Cost $ 134,400 124,000 Allocation Base Machine hours (MH) Direct labor hours (DLH) Budgeted Usage 9,600 MH 3,100 DLH Required: 1. Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct la allocate budgeted Assembly costs. 2. The company reports the following actual production usage data. Compute the overhead cost per unit for each model Machine hours per unit EasyRider 3.0 ΜΗ 0.5 DLH Direct labor hours per unit 3. The company reports additional information below. For each model, compute the product cost per unit. Per Unit Voltage EasyRider Voltage 2.0 ΜΗ 1.8 DLH Selling Price $ 276 170 Direct Materials $ 106 96 Direct Labor $ 45 18 4. For each model, compute gross profit per unit (selling price per unit minus product cost per unit).

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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Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Actual Activity Usage Setups Parts Inspections 1. Using a plantwide overhead rate based on 6,500 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity- based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Required 1 Required 2 Per Unit Product A Product B Activity Driver $ 26,000 (20 machine setups) 20,800 (16,000 parts) 31,200 (100 inspections) $ 78,000 Product A 2,600 units $36 per unit $ 56 per unit 2 per unit $ Direct Materials Complete this…
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Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: Units Setups Inspections Assembly (dlh) 2,700 4,000 8,000 8,000 Small table lamps Desk lamps Activity Setups 9,150 15,250 44,400 44,400 Total Activity-Base Usage Budgeted Activity Cost 12,000 $102,000 24,400 129,320 77,700 310,800 Inspections Assembly (dlh) The total factory overhead to be allocated to desk lamps is Oa. $456,995 Ob. $228,498 Oc. $587,565 Od. $326,425
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
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s Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Overhead cost Direct labor hours Machine hours Fabricating $ 1,260,000 Desk lamp 131,600 DLH 90,000 MH 28,000 DLH 72,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Number of Direct Labor Hours Units per Unit 6,000 4 DLH per unit Assembly $ 336,000 Machine Hours per Unit 3 MH per unit Required 1 Required 2 Required 3 Required: 1. Determine the plantwide overhead rate using 159,600 direct labor hours as the allocation base. 2. Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. 3. Compute departmental overhead rates based on machine hours in the Fabricating department and direct labor hours in the Assembly department. 4. Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Complete this question…
Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: Line Item Description Units Setups Inspections Assembly (dlh) Small table lamps 4,000 3,500 9,450 45,600 Desk lamps 8,100 7,000 15,750 45,600 Activity Total Activity-Base Usage Budgeted Activity Cost Setups 10,500 $95,550 Inspections 25,200 168,840 Assembly (dlh) 79,800 255,360 The total factory overhead to be allocated to desk lamps is a. $315,145 b. $409,689 c. $567,261 d. $189,087
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Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Cost Activity Base $392,400 Number of purchase orders 233,100 Number of production orders 409,400 Number of moves 708,700 Number of engineering changes 1,526,300 Machine hours Number of Purchase Orders Number of Number Number of of Moves Engineering Changes 11 7 23 Production Orders 4,090 280 1,800 185 12,000 910 The activity-based cost for each disk drive unit is Oa. $793.58 Ob. $21.93 Oc. $235.34 Od. $191.6 1 1,410 740 4,500 Machine Hours 1,800 8,300 11,500 Number of Units 2,300 4,300 2,400
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Crash Bang, Co. uses a standard cost system and provides the following information: Standards: Static budget variable overhead $5,580.00. Static budget fixed overhead $22,380.00. Static budget direct labor hours 573 hours. Static budget number of units 21,200 units. Static budget direct labor hours 0.026 hours per unit. Crash Bang, Co. allocates manufacturing overhead to production based on standard direct labor hours. Crash Bang, Co. reported the following actual results for 2020: Actual: Number of units produced 20,800. Actual variable overhead $5,300.00 Actual fixed overhead $24,400.00. Actual direct labor hours 499. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the variable overhead allocation rates.