Category Unit Batch Product Facility Total Pooled Cost $ 420,000 239,400 Direct materials cost Direct labor cost Required 120, 600 315,000 Additional data for each of the product lines follow: Number of labor hours Number of machine hours Number of production orders Research and development time Number of units Square footage Type of Product a. Commercial Types of Costs Indirect labor wages, supplies, factory utilities, machine maintenance Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling Research and development Rent, general utilities, maintenance, facility depreciation, administrative salaries Total Cost Commercial $25.15 per unit $10.75 per hour 6,000 10,000 200 10% 15,000 20,000 Home $15.15 per unit $ 8.75 per hour 12,000 45,000 2,000 20% Cost per Unit 45,000 50,000 Miniature $ 12.15 per unit $9.75 per hour. 2,000 25,000 800 70% Co Machine hours Number of produ Time spent by I Square footage 14,000 30,000 Total a. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines. 20,00 80,00 3,00 1( b. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines. Note: For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your answers for "Total Cost" to the nearest whole dollar amount. 74,00 100,00
Category Unit Batch Product Facility Total Pooled Cost $ 420,000 239,400 Direct materials cost Direct labor cost Required 120, 600 315,000 Additional data for each of the product lines follow: Number of labor hours Number of machine hours Number of production orders Research and development time Number of units Square footage Type of Product a. Commercial Types of Costs Indirect labor wages, supplies, factory utilities, machine maintenance Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling Research and development Rent, general utilities, maintenance, facility depreciation, administrative salaries Total Cost Commercial $25.15 per unit $10.75 per hour 6,000 10,000 200 10% 15,000 20,000 Home $15.15 per unit $ 8.75 per hour 12,000 45,000 2,000 20% Cost per Unit 45,000 50,000 Miniature $ 12.15 per unit $9.75 per hour. 2,000 25,000 800 70% Co Machine hours Number of produ Time spent by I Square footage 14,000 30,000 Total a. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines. 20,00 80,00 3,00 1( b. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines. Note: For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your answers for "Total Cost" to the nearest whole dollar amount. 74,00 100,00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Denger
Transcribed Image Text:Stuart Electronics produces video games in three market categories: commercial, home, and miniature. Stuart has
traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor
hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations
that rendered the traditional costing system ineffective. In implementing the ABC system, the company identified
the following activity cost pools and cost drivers:
Category
Unit
Batch
Product
Facility
Direct materials cost
Direct labor cost.
Number of labor hours
Number of machine hours
Number of production orders
Research and development time
Number of units
Square footage
Total Pooled
Cost
$ 420,000
239,400
Additional data for each of the product lines follow:
Type of Product
a. Commercial
a. Home
a. Miniature
120, 600
315,000
Combined total
b. Commercial
b. Home
b. Miniature
Combined total
Types of Costs
Indirect labor wages, supplies, factory utilities,
machine maintenance
$
Materials handling, inventory storage, labor for
setups, packaging, labeling and shipping, scheduling
Research and development
Rent, general utilities, maintenance, facility
depreciation, administrative salaries
$
Total Cost
Commercial
$25.15 per unit
$10.75 per hour
6,000
10,000
200
0
10%
0
15,000
20,000
Home
$15.15 per unit
$ 8.75 per hour
12,000
45,000
2,000
20%
Required
a. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to
each product line using direct labor hours as a companywide allocation base. Also determine the combined cost
of all three product lines.
Cost per Unit
45,000
50,000
b. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate
overhead costs. Determine the combined cost of all three product lines.
Note: For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all
other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your
answers for "Total Cost" to the nearest whole dollar amount.
81.15
800
Miniature
$ 12.15 per unit
$9.75 per hour
2,000
25,000
70%
14,000
30,000
Machine hours
Number of prod
Time spent by I
Square footage
Total
Co
20,00
80,00
3,00
1(
74,00
100,00
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