Homework Help is Here – Start Your Trial Now!
Business
Accounting
Consider the following data for two products of Vigano Manufacturing Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Activity Driver $ 23,000 (20 machine setups) 18,400 (16,000 parts) 27,600 (100 inspections) $ 69,000 Product A 2,300 units $ 33 per unit $ 53 per unit 2 per unit Product B 460 units $ 43 per unit $ 63 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 5,750 direct labor hours, compute the total product cost per unit for each product 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost. (a) compute overhead activity rates. (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each.

Consider the following data for two products of Vigano Manufacturing Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Activity Driver $ 23,000 (20 machine setups) 18,400 (16,000 parts) 27,600 (100 inspections) $ 69,000 Product A 2,300 units $ 33 per unit $ 53 per unit 2 per unit Product B 460 units $ 43 per unit $ 63 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 5,750 direct labor hours, compute the total product cost per unit for each product 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost. (a) compute overhead activity rates. (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each.

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
icon
Concept explainers
Topic Video
Question

Please do not give solution in image format 

Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. (Round your final answers to 2 decimal places.) a. Compute overhead activity rates Activity Activity Rate per setup per part per inspection b. Allocate overhead to Product A, B and compute overhead cost per unit Allocated Cost Machine setup Parts handling Quality inspection Activity Machine setup Parts handling Quality inspection. Total allocated cost Units produced - nar snit Product A Product B $ INAMUM Product A OS Product B c. Product cost per unit using activity-based costing Per Unit Product Cost per Unit Show less A 4
Transcribed Image Text:Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. (Round your final answers to 2 decimal places.) a. Compute overhead activity rates Activity Activity Rate per setup per part per inspection b. Allocate overhead to Product A, B and compute overhead cost per unit Allocated Cost Machine setup Parts handling Quality inspection Activity Machine setup Parts handling Quality inspection. Total allocated cost Units produced - nar snit Product A Product B $ INAMUM Product A OS Product B c. Product cost per unit using activity-based costing Per Unit Product Cost per Unit Show less A 4
Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling. Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost. Direct labor cost Direct labor hours Activity Driver $ 23,000 (20 machine setups) 18,400 (16,000 parts) 27,600 (100 inspections), $ 69,000 Actual Activity Usage Setups Parts Inspections. Product A 2,300 units, $ 33 per unit $53 per unit 2 per unit Product B 460 units $ 43 per unit $ 63 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 5,750 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost. (a) compute overhead activity rates. (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each Product A 8 setups 10,000 parts: 40 inspections Product B 12 setups 6,000 parts 60 inspections V Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling. Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost. Direct labor cost Direct labor hours Activity Driver $ 23,000 (20 machine setups) 18,400 (16,000 parts) 27,600 (100 inspections), $ 69,000 Actual Activity Usage Setups Parts Inspections. Product A 2,300 units, $ 33 per unit $53 per unit 2 per unit Product B 460 units $ 43 per unit $ 63 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 5,750 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost. (a) compute overhead activity rates. (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each Product A 8 setups 10,000 parts: 40 inspections Product B 12 setups 6,000 parts 60 inspections V Complete this question by entering your answers in the tabs below.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Costing Systems
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