**Activity-Based Costing for Pricing Seasonal Coats**Crane, Inc. utilizes activity-based costing to inform the pricing of its six lines of seasonal coats. Below is a summary of the estimated overhead costs and the estimated use of cost drivers for each activity.| **Activity Cost Pools** | **Estimated Overhead** | **Estimated Use of Cost Drivers per Activity** ||-------------------------------|------------------------|------------------------------------------------|| Sizing and cutting | $4,108,500 | 166,000 machine hours || Stitching and trimming | $1,439,100 | 78,000 labor hours || Wrapping and packing | $325,500 | 35,000 finished units |To compute the activity-based overhead rates, use the following budgeted data for each activity cost pool. Ensure you round your answers to two decimal places (e.g., 12.25).**Activity-Based Overhead Rates**- Sizing and cutting: $______ per machine hour- Stitching and trimming: $______ per labor hour- Wrapping and packing: $______ per finished unitThese calculations help determine the cost allocation for each stage, ensuring precise pricing strategies across the company's seasonal coat lines.

Name: **Activity-Based Costing for Pricing Seasonal Coats**Crane, Inc. util
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Description: **Activity-Based Costing for Pricing Seasonal Coats**Crane, Inc. utilizes activity-based costing to inform the pricing of its six lines of seasonal coats. Below is a summary of the estimated overhead costs and the estimated use of cost drivers for e

Overhead rate is defined as the allocation of the cost of production to the products or services.…

Business

Accounting

Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools. decimal places, e.g. 12.25.) Sizing and cutting Stitching and trimming Wrapping and packing $ $ $ Activity-based overhead rates per machine hour per labor hour per finished unit

Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools. decimal places, e.g. 12.25.) Sizing and cutting Stitching and trimming Wrapping and packing $ $ $ Activity-based overhead rates per machine hour per labor hour per finished unit

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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step in overhead planning and control. After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,100 + $0.15 per machine-hour $38,100 + $1.60 per machine-hour $0.50 per machine-hour $94,500 + $2.10 per machine-hour $67,700 Actual Cost in March $ 20,450 $ 59,100 $ 8,300 $ 131,100 $ 69,400 During March, the company worked 15,000 machine-hours and produced 9,000 units. The company originally planned to work 17,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the spending variances for March. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive…
compute the budgeted factory overhead rate (i.e., the $ rate per activity base hour, etc.) for department x
Computing and using a single plantwide overhead allocation rate Koehler makes handheld calculators in two models: basic and professional. Koehler estimated $721,000 of manufacturing overhead and 515,000 machine hours for the year. The basic model actually consumed 230,000 machine-hours, and the professional model consumed 285,000 machine hours. Compute the predetermined overhead allocation rate using machine hours (MHr) as the allocation base. How much overhead is allocated to the basic model? To the professional model?
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Activity Cost Pools, Activity Rates, and Product Costs using Activity-Based Costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base formation are provided as follows: Activity Procurement Scheduling Materials handling Product development Total cost Ovens Refrigerators Totals Activity Pool Cost $12,600 90,000 11,000 50,000 $163,600 The estimated activity-base usage and unit information for two product lines was determined as follows: Ovens Refrigerators Number of purchase orders Number of production orders Number of moves Number of engineering changes Number of Purchase Orders 400 300 700 Procurement (per purchase order) Scheduling (per production order) Materials handling (per move) Product development (per engineering change order) Activity Base Number of…
The measure of activity in the standard costing system used at Esta GmbH is machining hours. The company's flexible manufacturing overhead budget and then data regarding the most recent period's operations are given below: Flexible Budget: Budgeted Level of Activity: 6,600 machining hours Overhead costs at the Budgeted activity level: Variable Overhead Cost: $17,226 Fixed Overhead Cost: $13,992 Most Recent period's operations: Actual level of activity: 7,200 machining hours Standard level of activity for output: 7,140 machining hours Actual total variable overhead cost: $17,856 Actual total fixed overhead cost: $14,256 PART A What is the variable overhead rate variance? (936 favorable, 481 unfavorable, 630 unfavorable, 779 favorable, OR 2,267 favorable) PART B What is the variable overhead efficiency variance? (157 unfavorable, 1409 unfavorable, 1566 unfavorable, 1488 unfavorable, OR 149 unfavorable) PART C What is the fixed overhead budget variance? (264 unfavorable, 1272…
Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A's production is much more labor-intensive than that of Model B. Model B is also the more popular of the two speakers. The following data has been gathered for the two products: Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Overhead costs: Setup costs Inspection costs Machining Maintenance Total Model A 10,000 $153,000 144,000 17,000 30 900 9,000 $216,000 220,000 172,000 300,000 $908,000 Product Data Model B 100,000 $1,530,000 310,000 204,000 60 1,300 91,000
manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturin overhead are given below: Level of activity Overhead costs at the denominator activity level: Variable overhead cost Fixed overhead cost The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output Actual total variable manufacturing overhead cost Actual total fixed manufacturing overhead cost 2,550 DLHs $ 8,600 $ 35,125 2,700 DLHs 2,597 DLHs $ 9,200 $ 35,525 How much overhead was applied to products during the period to the nearest dollar? Note: Do not round Intermediate calculations. Multiple Cholce $44.125 $43.725 $44.725 $44.531 $44.725
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Since, the predetermined overhead rate and the budgeted factory overhead is given. We need to calculate the amount of the allocation base in order to know how Mystic Inc. computed its predetermined overhead rate for 2010. Equation to compute the Predetermined Overhead rate: Given: Predetermined Overhead rate = Predetermined rate: $4.25 per direct labor dollar Budgeted Factory Overhead: $1,275,000 Solution: $4.25 = ? = $300,000 = = $300,000 is the budgeted direct labor cost.
Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity. Round your answers to two decimal places. Overhead Overhead Annual Rate per Activity per Activity Usage Activity Machine Setups $157,850 4,100 $ Machine Hours 324,622 14,114 2$ Inspections 119,000 3,400
Predetermined Overhead Rates, Overhead Variances, Unit Costs Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided: Department 1 Department 2 Direct labor hours 640,000 128,000 Machine hours 16,000 192,000 Overhead cost $384,000 $1,152,000 Actual results reported by department and product during the year are as follows: Department 1 Department 2 Direct labor hours 627,200 134,400 Machine hours 17,600 204,800 Overhead cost $400,000 $1,232,000 Product 1 Product 2…