Homework Help is Here – Start Your Trial Now!
Business
Accounting
Company Healthy produces two main products: Daily vitamins and prenatal vitamins. They use ac Monthly overhead $18,000 $29,000 Activity Cost driver Setup Mixing Quality testing Number of setups Mixing hours Number of tests $25,100 Company Healthy compiled the following information about the chosen cost drivers and each of th Daily vitamins 48 Prenatal vita mins 42 Number of setups Mixing hours Number of tests 1,700 220 1,900 280 $7.00 Sales price per unit Direct materials cost per unit $7.00 $2.00 $2.50 Direct labor cost per unit $0.70 $1.10 Units of production per month 70,000 40,000 1. Assuming an ABC system, assign overhead costs to each product based on activity demands (u. Daily vitamins Prenatal vita mins Setup costs Mixing costs Quality testing costs TOTAL overhead cost Overhead cost per unit 2. Calculate the production cost per unit for each of Company Healthy's products (use formulas to Daily vitamins Prenatal vita mins TOTAL manfucaturing cost per unit 3. Calculate the production gross margin per unit for each of Company Healthy's products (use for Daily vitamins 4 -5 Prenatal vitamins 36 Gross margin per unit 37 38 39

Company Healthy produces two main products: Daily vitamins and prenatal vitamins. They use ac Monthly overhead $18,000 $29,000 Activity Cost driver Setup Mixing Quality testing Number of setups Mixing hours Number of tests $25,100 Company Healthy compiled the following information about the chosen cost drivers and each of th Daily vitamins 48 Prenatal vita mins 42 Number of setups Mixing hours Number of tests 1,700 220 1,900 280 $7.00 Sales price per unit Direct materials cost per unit $7.00 $2.00 $2.50 Direct labor cost per unit $0.70 $1.10 Units of production per month 70,000 40,000 1. Assuming an ABC system, assign overhead costs to each product based on activity demands (u. Daily vitamins Prenatal vita mins Setup costs Mixing costs Quality testing costs TOTAL overhead cost Overhead cost per unit 2. Calculate the production cost per unit for each of Company Healthy's products (use formulas to Daily vitamins Prenatal vita mins TOTAL manfucaturing cost per unit 3. Calculate the production gross margin per unit for each of Company Healthy's products (use for Daily vitamins 4 -5 Prenatal vitamins 36 Gross margin per unit 37 38 39

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
fill in the yellow highlighted cells based on the information provided above
X V fx E LA Company Healthy produces two main products: Daily vitamins and prenatal vitamins. They use acti Cost driver Monthly overhead Activity Setup Mixing Quality testing Number of setups $18,000 Mixing hours Number of tests $29,000 $25,100 Company Healthy compiled the following information about the chosen cost drivers and each of thei Daily vitamins Prenatal vitamins 42 Number of setups Mixing hours Number of tests 48 1,700 1,900 220 280 $7.00 $7.00 Sales price per unit Direct materials cost per unit $2.00 $2.50 Direct labor cost per unit $0.70 $1.10 Units of production per month 70,000 40,000 1. Assuming an ABC system, assign overhead costs to each product based on activity demands (use Daily vitamins Prenatal vita mins If Setup costs Mixing costs Quality testing costs TOTAL overhead cost 7 28 Overhead cost per unit 29 30 2. Calculate the production cost per unit for each of Company Healthy's products (use formulas to c Daily vitamins 31 Prenatal vita mins 32 TOTAL manfucaturing cost per unit 33 3. Calculate the production gross margin per unit for each of Company Healthy's products (use form Daily vitamins 34 35 Prenatal vitamins 36 Gross margin per unit 37 38 39 40 41
Transcribed Image Text:X V fx E LA Company Healthy produces two main products: Daily vitamins and prenatal vitamins. They use acti Cost driver Monthly overhead Activity Setup Mixing Quality testing Number of setups $18,000 Mixing hours Number of tests $29,000 $25,100 Company Healthy compiled the following information about the chosen cost drivers and each of thei Daily vitamins Prenatal vitamins 42 Number of setups Mixing hours Number of tests 48 1,700 1,900 220 280 $7.00 $7.00 Sales price per unit Direct materials cost per unit $2.00 $2.50 Direct labor cost per unit $0.70 $1.10 Units of production per month 70,000 40,000 1. Assuming an ABC system, assign overhead costs to each product based on activity demands (use Daily vitamins Prenatal vita mins If Setup costs Mixing costs Quality testing costs TOTAL overhead cost 7 28 Overhead cost per unit 29 30 2. Calculate the production cost per unit for each of Company Healthy's products (use formulas to c Daily vitamins 31 Prenatal vita mins 32 TOTAL manfucaturing cost per unit 33 3. Calculate the production gross margin per unit for each of Company Healthy's products (use form Daily vitamins 34 35 Prenatal vitamins 36 Gross margin per unit 37 38 39 40 41
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Governmental Audits
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS