View InsertForinat100% $ % .00 123 10BISA. E E 1 0DEGKPROBLEM 2:Boots and More, Inc. uses activity-based costing to assist management in setting pricesfor the company's 3 major product lines. The following information is available:Activity Cost Pool Estimated Overhead Expected Use of Cost DriverCuttingStitchingInspectionsPackingP 900,0008,000,0002,800,000672,000Per Activity24,000 labor hours320,000 machine hours160,000 labor hours64,000 finished goods unitsA ddifional information:Production215,500 unitsDirect Materials per unitP50Direct Lab or per unitP27Acti vities of the company:10,000 labor hoursCuttingStitching120,000 machine hoursInspections100.000 labor hoursPacking250,000 finis hed goo ds unitsRequirement1. Compute for the pre-detem ined annual overhead rates for ABC.2. Compute for the overhead costs and the cost per unit using ABCINFORMATIONPROB 1PROB 2 -PROB 3PROB 4PROB SP

Name: View InsertForinat100% $ % .00 123 10BISA. E E 1 0DEGKPROBLEM 2:Boots
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Description: View InsertForinat100% $ % .00 123 10BISA. E E 1 0DEGKPROBLEM 2:Boots and More, Inc. uses activity-based costing to assist management in setting pricesfor the company's 3 major product lines. The following information is available:Activity Cost Pool

The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…

Business

Accounting

Boots and More, Inc. uses activity-based costing to assist management in setting prices for the company's 3 major product lines. The following information is available: Activity Cost Pool Estimated Overhead Expected Use of Cost Driver Cutting Stitching Inspections Packing P 900,000 8,000,000 2,800,000 672,000 Per Activity 24,000 labor hours 320,000 machine hours 160,000 labor hours 64,000 finished goods units A dditional information: Production 215,500 units Direct Materials per unit P60 Direct Labor per unit P27 Acti vities of the company: Cutting 10,000 labor hours Stitching 120,000 machine hours Ins pections 100,000 labor hours Packing 250,000 finis he d goo ds un its Requirement 1. Compute for the pre-detem ined annual overhead rates for ABC 2. Compute for the overhead costs and the cost per unit using ABC.

Boots and More, Inc. uses activity-based costing to assist management in setting prices for the company's 3 major product lines. The following information is available: Activity Cost Pool Estimated Overhead Expected Use of Cost Driver Cutting Stitching Inspections Packing P 900,000 8,000,000 2,800,000 672,000 Per Activity 24,000 labor hours 320,000 machine hours 160,000 labor hours 64,000 finished goods units A dditional information: Production 215,500 units Direct Materials per unit P60 Direct Labor per unit P27 Acti vities of the company: Cutting 10,000 labor hours Stitching 120,000 machine hours Ins pections 100,000 labor hours Packing 250,000 finis he d goo ds un its Requirement 1. Compute for the pre-detem ined annual overhead rates for ABC 2. Compute for the overhead costs and the cost per unit using ABC.

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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Assume a company manufactures only two products—14,000 units of Product C and 6,000 units of Product D. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products C and D: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 300,000 15,000 MH Machine setups Number of setups $ 150,000 200 Setups Product design Number of products $ 78,000 2 Products Activity Measure Product C Product D Machine-hours 9,000 6,000 Number of setups 50 150 Number of products 1 1 Using the ABC system, how much total overhead cost would be assigned from all of the activities to Product D? Multiple Choice $271,500 $261,500 $301,500 $251,500
Maxx Inc. has provided the following data from its activity-based costing system:Activity Cost Pools Total Cost Total ActivityDesigning products $383,900 6,580 product design hoursSetting up batches $52,678 7366 batch set-upsAssembling products $25,122 4,018 assembly hoursThe activity rate for the “designing products” activity cost pool is:
Z Company uses activity based costing and gives you the following data regarding cost pools and estimated overhead cost for each pool. Machine related RO 80,000 Material handling RO 130,000 Purchase related RO 340,000 General factory RO 320,000 The amount of total estimated overhead is: a. RO 660,000 b. RO 550,000 c. RO 790,000 d. RO 870,000 fast just choose
O&G Company manufactures console tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each console table consists of 40 separate parts totaling $250 in direct materials and requires 5.0 hours of machine time to produce. Additional information follows: Activity Materials handling Allocation Base Number of parts Machine hours Number of parts Number of finished units Machining Assembling Packaging What is the number of finished console tables? OA 200 OB. 467 OC. 25 OD. Cannot be determined from the information given Cost Allocation Rate $3.00 per part $4.80 per machine hour $1.00 per part $4.00 per finished unit
Roca, Incorporated, manufactures and sells two products: Product M6 and Product X7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Activity Cost Pools Labor-related Production orders Order size Multiple Choice O $360,294 O $443.424 O $369,879 Activity Measures DLHs orders MHS O $249,264 $ 152,100 63,035 505,452 $ 720,587 The total overhead applied to Product X7 under activity-based costing is closest to: (Round your Intermediate calculations to 2 decimal places.) Expected Activity Product M6 Product X7 3,000 400 4,800 300 3,700 3,600 saved Total 7,800 700 7,300
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Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $ 184,800 30,800 DLHs Purchase orders Number of orders $ 6,900 230 orders Parts management Number of part types $ 81,120 104 part types Board etching Number of boards $ 45,000 1,800 boards General factory Machine-hours $ 150,300 16,700 MHs Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company’s four products as follows: Activity Cost Pool Expected Activity Product A Product B Product C Product D Labor-related (DLHs) 7,000 14,300 4,400 5,100 Purchase orders (orders) 58 26 46 100 Parts management (part types) 30 18 37 19 Board etching (boards) 500 720 580 0 General factory…
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
A company has provided the following data from its activity-based costing accounting system: Indirect factory wages Factory equipment depreciation S 27,000 $ 204,000 Distribution of Resource Consumption across Activity Cost Pools: Activity Cost Pools Indirect factory wages Factory equipment depreciation Product Processing 48% 25% Customer Orders Other 38 128 Total 100% 100% 63% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. Required: a. Determine the total amount of indirect factory wages and factory equipment depreciation costs that would be allocated to the Product Processing activity cost pool. b. Determine the total amount of indirect factory wages and factory equipment depreciation costs that would NOT be assigned to products. Complete this question by entering your answers in the tabs below. Required A Required B Determine the total amnount of indirect factory wages and factory equipment…
Assume a company manufactures only two products—14,000 units of Product C and 6,000 units of Product D. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products C and D: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 300,000 15,000 MH Machine setups Number of setups $ 150,000 200 Setups Product design Number of products $ 78,000 2 Products Activity Measure Product C Product D Machine-hours 9,000 6,000 Number of setups 50 150 Number of products 1 1 Using the ABC system, how much overhead cost would be assigned from the Machine Setups cost pool to Product D? Multiple Choice $115,200 $112,500 $122,500 $102,500