Bobzien, Incorporated, manufactures and sells two products: Product B7 and Product Z5. Data concerning the expected production of each product andthe expected total direct labor-hours (DLHS) required to produce that output appear below:Product B7Product Z5Total direct labor-hoursExpected Hours PerProduction300800Activity Cost PoolsLabor-relatedProduction ordersOrder sizeDirectLabor-ActivityMeasuresDLHSordersMHsThe direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5.EstimatedOverheadCostUnit5.03.0The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:$ 39,58526,884462,768$529,237TotalDirectLabor-Hours1,5002,4003,900Expected ActivityProduct B7 Product Z51,5002,4005006004,6004,700Total3,9001,1009,300The activity rate for the Production Orders activity cost pool under activity-based costing is closest to: O$98.46 per order$56.91 per order$24.44 per order$100.60 per order

Activity-based costing (ABC): It is a costing method in which overhead and indirect costs are…

Bobzien, Incorporated, manufactures and sells two products: Product B7 and Product Z5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product B7 Product Z5 Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size Expected Hours Per Production 300 800 Activity Measures DLHs orders MHS Direct Labor- Estimated Overhead Cost The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity $ 39,585 26,884 462,768 $ 529,237 Unit 5.0 3.0 Total Direct Labor- Hours 1,500 2,400 3,900 Product B7 Product Z5 2,400 600 4,700 1,500 500 4,600 Total 3,900 1,100 9,300 The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:

Bobzien, Incorporated, manufactures and sells two products: Product B7 and Product Z5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product B7 Product Z5 Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size Expected Hours Per Production 300 800 Activity Measures DLHs orders MHS Direct Labor- Estimated Overhead Cost The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity $ 39,585 26,884 462,768 $ 529,237 Unit 5.0 3.0 Total Direct Labor- Hours 1,500 2,400 3,900 Product B7 Product Z5 2,400 600 4,700 1,500 500 4,600 Total 3,900 1,100 9,300 The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:

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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Larner 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 Rates $8.00 per direct labor-hour Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments $9.00 per machine-hour $ 50.00 per setup $100.00 per order $ 180.00 per shipment General factory $9.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Unit product cost Total Expected Activity J76 379 900 2,900 4 8 12 852 50 20 B52 4 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 378 $ 4.50 $ 4.75 4,000 852 $ 45.00 $10.00. 500
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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 Production orders $ 160 per order Shipments $125 per shipment Product sustaining $850 per product 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 Rates $ 11 per direct labor-hour $2 per machine-hour $50 per setup Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost K425 Total Expected Activity K425 M67 2,000 M67 200 1,150 3,200 15 15 30 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 40 30 3 3 3 3
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 Activity Rates Supporting direct labor $ 8 per direct labor-hour Machine processing $ 4 per machine - hour Machine setups $ 40 per setup Production orders $ 150 per order Shipments $ 120 per shipment Product sustaining $ 900 per product Activity data have been supplied for the following two products: Total Expected Activity K425 -M67 Number of units produced per year 200 2,000 Direct labor-hours 925 40 Machine - hours 2, 600 30 Machine setups 11 1 Production orders 11 1 Shipments 22 1 Product sustaining 1 1
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 Activity Rate $7 per direct labor-hour $4 per machine-hour $ 45 per setup Production orders. $ 160 per order Shipments $ 130 per shipment Product sustaining $ 900 per product 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 $ K425 Total Expected Activity K425 M67 2,000 0 $ 200 1,000 3,000 5 5 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? M67 10 1 30 20 1 1 0 1 1
Larner 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 Labor-related Machine-related Machine setups Production orders. Shipments General factory Activity Rates $ 7.00 per direct labor-hour $ 4.00 per machine-hour $50.00 per setup $ 100.00 per order $ 150.00 per shipment $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit 378 $ 3.00 $ 3.00 B52 $ 20.00 $ 6.00 2,000 100 Number of units produced per year Total Expected Activity 378 B52 Direct labor-hours. 1,000 20 Machine-hours 2,000 50 Machine setups 6 3 Production orders 5 3 8 3 Shipments Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost