4.2 BriteLite Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated activity costs and activity bases are as follows: BriteLite Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and theirassociated activity costs and activity bases are as follows:ActivityActivity Costs(Budgeted)$42,00013,5005,80016,8003,600Activity BaseActivityCastingAssemblyInspectingSetupMaterials handlingCorporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities andunits produced for each product and in total are provided in the following table:EntryDining Total8006001400500900140Machine hoursDirect labor hours.Number of inspectionsNumber of setupsNumber of loadsActivity BaseMachine hoursDirect labor hours400Number of inspections150Number of setups8060Number of loads5040Units produced1,200500a. Determine the activity rate for each activity.Activity Rate290140901,700 CastingAssemblyInspectingSetupMaterials handlingb. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. If required, round your answers to twodecimal places.CastingAssemblyInspectingSetupMaterials handlingTotal activity costmhdlh/insp./setup/loadNumber of unitsActivity cost perunitEntry LightingFixtures$$Dining RoomLighting Fixtures$$$

Under Activity based costing, activity rate is computed by dividing the activity cost by the…

Casting Assembly Inspecting Setup Materials handling b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. If required, round your answers to two decimal places. Casting Assembly Inspecting Setup Materials handling Total activity cost mh dih /insp. /setup /load Number of units Activity cost per unit Entry Lighting Fixtures $ $ Dining Room Lighting Fixtures $ $ $

Casting Assembly Inspecting Setup Materials handling b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. If required, round your answers to two decimal places. Casting Assembly Inspecting Setup Materials handling Total activity cost mh dih /insp. /setup /load Number of units Activity cost per unit Entry Lighting Fixtures $ $ Dining Room Lighting Fixtures $ $ $

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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CanCo Company manufactures a single product. The company keeps careful records of manufacturing activities, from which the following Information has been extracted: Number of units produced Cost of goods manufactured Work-in-process inventory, beginning Work-in-process inventory, ending Direct materials cost per unit Direct labour cost per unit Manufacturing overhead cost, total Manufacturing overhead cost Y= Level of Activity March The company's manufacturing overhead cost consists of both variable and fixed cost elements. To have data available for planning, management wants to determine how much of the overhead cost is variable with units produced and how much of it is fixed per month. $ 5,200 $260,800 31,000 53,000 Required: 1. For both March and June, determine the amount of manufacturing overhead cost added to production. (Hint: A useful way to proceed might be to construct a schedule of cost of goods manufactured.) Cost of goods manufactured Answer is complete but not entirely…
(Appendix 4B) Direct Method of Support Department Cost Allocation Stevenson Company is divided into two operating divisions: Battery and Small Motors. The company allocates power and general factory costs to each operating division using the direct method. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. Support department cost allocations using the direct method are based on the following data: Operating Divisions Overhead costs Machine hours Square footage Direct labor hours Required: Battery Support Departments Small Motors Power $160,000 2,000 1,000 General Factory Battery $430,000 $163,000 2,000 8,000 Power 1,500 1. Calculate the allocation ratios for Power and General Factory. (Note: Carry these calculations out to four decimal places, if necessary.) General Factory 0.8000 ✓ 0.2727 X 7,500 18,000 Small Motors $84,600 2,000 20,000 60,000 0.2000 X 0.7273 2. Allocate the support service costs to the…
Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows:
Munoz Manufacturing produces two keyboards, one for laptop computers and the other for desktop computers. The production process is automated, and the company has found activity-based costing useful in assigning overhead costs to its products. The company has identified five major activities involved in producing the keyboards. Activity Materials receiving & handling Production setup Quality inspection Assembly Packing and shipping Allocation Base Cost of material Number of setups Number of parts Inspection time Number of orders Activity measures for the two kinds of keyboards follow: Allocation Rate 2% of material cost $112.00 per setup $7.00 per part $1.20 per minute $ 8.00 per order Laptops. Desktops Labor Cost $ 1,350 Material Cost Number of Setups 1,240 $ 6,500 7,100 31 Number of Parts 50 13 28 Inspection Time 6,800 minutes 4,600 minutes Number of Orders 62 22 Required a. Compute the cost per unit of laptop and desktop keyboards, assuming that Munoz made 200 units of each type of…
. LO.3 (Levels of costs) Carpenter Inc. designs industrial tooling parts and makes the molds for those parts. The following activities take place when the company creates a new mold. Classify each cost as unit level (U), batch level (B), product/process level (P), or organizational level (O). a. Consultation with equipment manufacturer on design specifications b. Engineering design of mold c. Creating mold d. Moving materials from warehouse for test quantity e. Direct materials for test quantity to judge conformity to design specifications f. Inspecting test quantity g. Preparing design specification changes based on test molds h. Depreciating small kiln used solely for test quantities i. Depreciating manufacturing building
Cherokee Inc. is a merchandiser that provided the following information: Amount 20,000 $ Number of units sold Selling price per Variable selling expense per Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense unit 30 unit $ 4 $ 2 $ 40,000 $ 30,000 $ Beginning merchandise inventory Ending merchandise inventory Merchandise purchases 24,000 $ 44,000 $ 180,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
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Q8 Lens Care Incorporated (LCI) manufactures specialized equipment for polishing optical lenses. There are two models - one mainly used for fine eyewear (F-32) and another for lenses used in binoculars, cameras, and similar equipment (B-13).The manufacturing cost of each unit is calculated using activity-based costing, using the following manufacturing cost pools: Cost Pools Allocation Base Costing Rate Materials handling Number of parts $ 3.60 per part Manufacturing supervision Hours of machine time $ 14.92 per hour Assembly Number of parts $ 3.90 per part Machine setup Each setup $ 57.10 per setup Inspection and testing Logged hours $ 46.10 per hour Packaging Logged hours $ 20.10 per hour LCI currently sells the B-13 model for $4,475 and the F-32 model for $4,580. Manufacturing costs and activity usage for the two products are as follows: B-13 F-32 Direct materials $ 165.10 $ 76.08 Number of parts 172 132 Machine hours 8.50 4.32 Inspection…
4.1 Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities-production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities:
Each of the following cost items pertains to one of these companies: Home Depot (a merchandising-sector company), Apple (a manufacturing-sector company), and Rent a Nanny (a service-sector company): LOADING... (Click the icon to view the cost items.) Read the requirements LOADING... . Requirement 1. Distinguish between manufacturing-, merchandising-, and service- companies. ▼ Manufacturing-sector Merchandising-sector Service-sector companies provide services or intangible products to their customers—for example, legal advice or audits. ▼ Manufacturing-sector Merchandising-sector Service-sector companies purchase materials and components and convert them into different finished goods. ▼ Manufacturing-sector Merchandising-sector Service-sector companies purchase and then sell tangible products without changing their basic form. Requirement 2. Distinguish between inventoriable costs and period costs. Select whether each…