Chapter 17 Homework 13 1.48 points eBook Saved You received partial credit in the previous attempt. Help Save & Exit Submit View previous attempt Check my work Exercise 17-19 (Algo) Activity-based costing to compute activity rates, overhead cost per unit, and product cost per unit LO P3 Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Direct materials Direct labor Overhead (using plantwide rate) Hint Total product cost Units produced Product cost per unit Ask Print References Mc Graw Hill $ 32,400 Rounded Edge Squared Edge $ 44,400 Total $ 76,800 40,400 114,400 10,800 39,000 $ 82,200 10,800 29,600 75,400 $ 149,400 14,800 $ 231,600 $ 7.61 $ 10.09 Northwest's controller wants to apply activity-based costing to allocate the $114,400 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. Activity Purchasing Budgeted Cost Depreciation of machinery Setup Total $5,800 59,800 48,800 Activity Cost Driver Purchase orders Machine hours Setups Rounded Edge 129 orders 500 hours 40 setups Activity Usage Squared Edge 451 orders 1,500 hours Total 210 setups 580 orders 2,000 hours 250 setups $ 114,400 Required: 1. Compute the activity rate for each activity using activity-based costing. 2. Compute overhead cost per unit for each of the two products using activity-based costing. 3. Determine product cost per unit for each of the two products using activity-based costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute overhead cost per unit for each of the two products using activity-based costing. Note: Round "Activity Rate" to 2 decimal places and other answers to the nearest whole dollar amount. Overhead cost per unit-Rounded Edge Activity Activity Usage Activity Rate Allocated Cost Purchasing 129 purchase orders $ 10.00 per order Depreciation 500 machine hours $ 29.90 per MH 14,950 Setup 40 setups S 195.20 per setup 7,808 Total allocated cost $ 22,758 Units produced Overhead cost per unit Overhead cost per unit-Squared Edge Activity Purchasing 10,800 $ 2.11 Activity Usage Activity Rate Allocated Cost 451 purchase orders $ 10.00 per order 4,510 Depreciation 1,500 machine hours $ 29.90 per MH 44,850 Setup 210 setups $ 195.20 per setup 40,992 Total allocated cost $ 90,352 Units produced Overhead cost per unit 14,800 $ 6.10 < Previous Required 3 > < Prev 13 of 13 Next >

Chapter 17 Homework 13 1.48 points eBook Saved You received partial credit in the previous attempt. Help Save & Exit Submit View previous attempt Check my work Exercise 17-19 (Algo) Activity-based costing to compute activity rates, overhead cost per unit, and product cost per unit LO P3 Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Direct materials Direct labor Overhead (using plantwide rate) Hint Total product cost Units produced Product cost per unit Ask Print References Mc Graw Hill $ 32,400 Rounded Edge Squared Edge $ 44,400 Total $ 76,800 40,400 114,400 10,800 39,000 $ 82,200 10,800 29,600 75,400 $ 149,400 14,800 $ 231,600 $ 7.61 $ 10.09 Northwest's controller wants to apply activity-based costing to allocate the $114,400 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. Activity Purchasing Budgeted Cost Depreciation of machinery Setup Total $5,800 59,800 48,800 Activity Cost Driver Purchase orders Machine hours Setups Rounded Edge 129 orders 500 hours 40 setups Activity Usage Squared Edge 451 orders 1,500 hours Total 210 setups 580 orders 2,000 hours 250 setups $ 114,400 Required: 1. Compute the activity rate for each activity using activity-based costing. 2. Compute overhead cost per unit for each of the two products using activity-based costing. 3. Determine product cost per unit for each of the two products using activity-based costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute overhead cost per unit for each of the two products using activity-based costing. Note: Round "Activity Rate" to 2 decimal places and other answers to the nearest whole dollar amount. Overhead cost per unit-Rounded Edge Activity Activity Usage Activity Rate Allocated Cost Purchasing 129 purchase orders $ 10.00 per order Depreciation 500 machine hours $ 29.90 per MH 14,950 Setup 40 setups S 195.20 per setup 7,808 Total allocated cost $ 22,758 Units produced Overhead cost per unit Overhead cost per unit-Squared Edge Activity Purchasing 10,800 $ 2.11 Activity Usage Activity Rate Allocated Cost 451 purchase orders $ 10.00 per order 4,510 Depreciation 1,500 machine hours $ 29.90 per MH 44,850 Setup 210 setups $ 195.20 per setup 40,992 Total allocated cost $ 90,352 Units produced Overhead cost per unit 14,800 $ 6.10 < Previous Required 3 > < Prev 13 of 13 Next >

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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