Cost PoolsMachine setupMaterials handlingElectric powerNumber of units producedDirect materials costDirect labor costNumber of setup hoursPounds of materials usedKilowatt-hoursActivity Costs$ 284,00075,00026,000The following cost information pertains to the production of A and B, just two of Hakara'sProduct AProduct BA5,000$ 25,000$ 28,000Cost per UnitCost Drivers1001,0002,000Setup hoursPounds of materialsKilowatt-hoursActivity DriveConsumption4,00015,00026,000B10,000$ 33,000$ 39,0001002,0002,000Required:1. Use activity-based costing to determine a unit cost for each product. (Round your final

Activity-based costing is used to allocate overhead expenses on the basis of activity. Other than…

Cost Pools Machine setup Materials handling Electric power Number of units produced Direct materials cost Direct labor cost Number of setup hours Pounds of materials used Kilowatt-hours Activity Costs $ 284,000 75,000 26,000 The following cost information pertains to the production of A and B, just two of Hakara Product A Product B A 5,000 $ 25,000 $ 28,000 Cost per Unit Cost Drivers 100 1,000 2,000 Setup hours Pounds of materials Kilowatt-hours B 10,000 $ 33,000 $ 39,000 Activity Driv Consumption 4,000 15,000 26,000 100 2,000 2,000 Required: 1. Use activity-based costing to determine a unit cost for each product. (Round your fina

Cost Pools Machine setup Materials handling Electric power Number of units produced Direct materials cost Direct labor cost Number of setup hours Pounds of materials used Kilowatt-hours Activity Costs $ 284,000 75,000 26,000 The following cost information pertains to the production of A and B, just two of Hakara Product A Product B A 5,000 $ 25,000 $ 28,000 Cost per Unit Cost Drivers 100 1,000 2,000 Setup hours Pounds of materials Kilowatt-hours B 10,000 $ 33,000 $ 39,000 Activity Driv Consumption 4,000 15,000 26,000 100 2,000 2,000 Required: 1. Use activity-based costing to determine a unit cost for each product. (Round your fina

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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Cost per Equivalent Unit The cost of direct materials transferred into the Rolling Department of Kraus Company is $459,000. The conversion cost for the period in the Rolling Department is $303,800. The total equivalent units for direct materials and conversion are 2,700 tons and 4,900 tons, respectively. Determine the direct materials and conversion costs per equivalent unit. Direct materials cost per equivalent unit: $fill in the blank 1 per ton Conversion cost per equivalent unit: $fill in the blank 2 per ton
Activity-Based Costing Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities—production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities: Activity Activity Cost Activity Base Production setup $ 44,000 Number of setups Procurement 13,500 Number of purchase orders (PO) Quality control 97,500 Number of inspections Materials management 84,000 Number of components Total $239,000 The activity-base usage quantities for each product are as follows: Setups PurchaseOrders Inspections Components Unit Volume Custom 290 760 1,200 500 2,000 Standard 110 140 300 200 2,000 Total 400 900 1,500 700 4,000 a. Determine an activity rate for each activity. Activity Rates Production Setup Procurement Quality Control…
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Activity Rates and Product Costs using Activity-Based Costing Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity BudgetedActivity Cost Activity Base Casting $560,000 Machine hours Assembly 75,000 Direct labor hours Inspecting 30,000 Number of inspections Setup 18,750 Number of setups Materials handling 14,000 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 7,500 12,500 20,000 Direct labor hours 2,000 3,000 5,000 Number of inspections 500 250 750 Number of setups 150 100 250 Number of loads 400 300 700 Units produced 5,000 2,500 7,500 a.…
Make-or-Buy, Traditional Analysis, Qualitative Considerations Apollonia Dental Services is part of an HMO that operates in a large metropolitan area. Currently, Apollonia has its own dental laboratory to produce two varieties of porcelain crowns—all porcelain and porcelain fused to metal. The unit costs to produce the crowns are as follows: All Porcelain Porcelain Fusedto Metal Direct materials $190 $80 Direct labor 50 20 Variable overhead 25 5 Fixed overhead 60 40 Total $325 $145 Fixed overhead is detailed as follows: Salary (supervisor) $30,000 Depreciation 8,000 Rent (lab facility) 22,000 Overhead is applied on the basis of direct labor hours. The rates above were computed using 8,000 direct labor hours. No significant non-unit-level overhead costs are incurred. A local dental laboratory has offered to supply Apollonia all the crowns it needs. Its price is $265 for all-porcelain crowns and $145 for…
Vaughn Company manufactures two products, Mini A and Maxi B. Vaughn's overhead costs consist of setting up machines- $890,000; machining- $2,030,000; and inspecting- $640,000. Information on the two products is: Mini A Мaxi В Direct labour hours 14,000 26,000 Machine setups 700 500 Machine hours 21,000 23,000 Inspections 700 600 Overhead applied to Maxi B using traditional costing and direct labour hours is
Cost per Equivalent Unit The cost of direct materials transferred into the Rolling Department of Blackrock Steel Company is $625,500. The conversion cost for the period in the Rolling Department is $157,680. The total equivalent units for direct materials and conversion are 13,900 tons and 13,140 tons, respectively.Determine the direct materials and conversion costs per equivalent unit. Direct materials cost per equivalent unit:Conversion costs per equivalent unit:per ton
Activities and Activity Measures Expected Activity Estimated Overhead Costs Product 1 Product 2 Hand-processing (direct labor-hours) $ 320,000 45,000 55,000 Setting up equipment (number of setups) 150,000 9,000 21,000 Administering parts inventories (number of part types) 30,000 110 90 $ 500,000 Transformation Corporation has provided the information set forth above regarding the overhead to be allocated between the two products it produces: CDE and EFG. What is the activity rate for the hand-processing units activity? multiple choice $3.20 per setup Incorrect $5.00 per setup $150.00 per part-type $3.20 per direct labor-hour
Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $215,160 Machine hours Assembly 189,550 Direct labor hours Inspecting 30,520 Number of inspections Setup 39,730 Number of setups Materials handling 36,960 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 5,180 4,600 9,780 Direct labor hours 4,460 6,690 11,150 Number of inspections 1,660 520 2,180 Number of setups 230 60 290 Number of loads 700 180 880 Units produced 10,400 5,200 15,600 a. Determine the activity rate for each activity. If required, round the rate to the…
Advanced Miniature Development manufactures computer graphics cards (GPUs). Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,160 GPUs were as follows: Cost Driver Direct materials Direct labor Factory overhead Instructions Determine the: Each GPU requires 0.5 hour of direct labor. f. Standard Costs 110,000 lbs. at $6.30 2,080 hours at $15.80 Rates per direct labor hr., based on 100% of normal capacity of 2,000 direct labor hrs.: Variable cost, $4.25 Fixed cost, $6.00 a. direct materials price variance b. direct materials quantity variance c. total direct materials cost variance d. direct labor rate variance direct labor time variance total direct labor cost variance g. the variable factory overhead controllable variance h. fixed factory overhead volume variance i. total factory overhead cost variance. Actual Costs 115,000 lbs. at $6.50 2,000 hours at $15.40 $8,200 variable cost $12,000 fixed cost
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