AcclaimInc. makes two styles of trophies, basic and deluxe, and operates at capacity.Acclaimdoes large custom orders.Acclaimbudgets to produce10,000basic trophies and5,000deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of200units per batch but because of the more intricate detail of the deluxe trophies, they are formed in batches of50units per batch. The controller has asked you to compare plantwide, department, and activity-based cost allocation. AcclaimBudgeted Information for the Year EndedNovember30,2020Forming DepartmentBasicDeluxeTotalDirect materials$37,700$21,500$59,200Direct manufacturing labor31,20015,30046,500Overhead costs: Set up 7,440Overhead costs: General overhead 34,410 Assembly DepartmentBasicDeluxeTotalDirect materials$4,800$15,200$20,000Direct manufacturing labor15,30014,70030,000Overhead costs: General overhead 36,000 equirement 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) Start by calculating the total direct costs for the basic and deluxe trophies departments. BasicDirect materials Forming Assembly Total direct materials Direct manufacturing labor Forming Assembly Total direct manufacturing labor Total direct costs

Name: AcclaimInc. makes two styles of trophies, basic and deluxe, and oper
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Description: AcclaimInc. makes two styles of trophies, basic and deluxe, and operates at capacity.Acclaimdoes large custom orders.Acclaimbudgets to produce10,000basic trophies and5,000deluxe trophies. Manufacturing takes place in two production departments: fo

A single plantwide overhead rate is the total manufacturing overhead cost divided by direct cost .…

Answered: ufacturing costs are accumulated in two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Acclaim

Inc. makes two styles of trophies, basic and deluxe, and operates at capacity.

Acclaim

does large custom orders.

Acclaim

budgets to produce

10,000

basic trophies and

5,000

deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of

200

units per batch but because of the more intricate detail of the deluxe trophies, they are formed in batches of

units per batch.

The controller has asked you to compare plantwide, department, and activity-based cost allocation.

Acclaim

Budgeted Information for the Year Ended

November

30,

2020

Forming Department	Basic	Deluxe	Total
Direct materials	$37,700	$21,500	$59,200
Direct manufacturing labor	31,200	15,300	46,500
Overhead costs: Set up			7,440
Overhead costs: General overhead			34,410

Assembly Department	Basic	Deluxe	Total
Direct materials	$4,800	$15,200	$20,000
Direct manufacturing labor	15,300	14,700	30,000
Overhead costs: General overhead			36,000

equirement 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.)

Start by calculating the total direct costs for the basic and deluxe trophies departments.

	Basic
Direct materials
Forming
Assembly
Total direct materials
Direct manufacturing labor
Forming
Assembly
Total direct manufacturing labor
Total direct costs

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Requirement 3. Calculate the budgeted unit cost of basic and deluxe trophies if

Acclaim

allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department.

Begin by calculating the budgeted setup rate for the forming department. First select the formula, then enter the applicable amounts and calculate the rate. (Round your answer to the nearest cent. Abbreviations used: DC - Direct cost, DL = Direct labor, $ = dollar.)

Budgeted setup costs

Budgeted setup rate

Forming

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ufacturing costs are accumulated in two cost​ pools, set up and general overhead. In the assembly​ department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of

ufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of