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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Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly I Inspection ( Cost Driver $1.20 per direct labor hour. $240 per order. $0.12 per part. $6,834 per order. Orders Setups Machine hours Parts Inspections Est. Overhead $ 120,000 297,000 1,500,000 1,200,000 MA 300,000 Cost Driver Activity W 500 orders 450 setups If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is 125,000 MH 1,000,000 parts 500 inspections P s 240
North-South Pole Company produces two products, a jacket suitable for adventure-seeking people (Spirit) and a jacket for less-adventurous people (Companion). Production and Sales per year 20,000 units (Spirit) & 5,000 units (Companion) Direct labour 3.5 hours per unit (both) Direct labour cost $32.00 per hour Estimated annual manufacturing overhead $285,000 Direct materials $180 per unit (both) Breakdown of overhead rates Activity Cost Pools Estimated Overhead Expected Use of Cost Drivers per Activity Activity Based Overhead Rates Machine set-up $ 40,000 200 $? per set-up Sewing $135,000 37,500 machine hours (MH) $? per MH Inspection $ 25,000 1000 $? per inspection The breakdown between the two products for assigning overheads are as follows: Product No. of Set-ups Sewing Inspections…
Cost per Equivalent Unit The cost of direct materials transferred into the Filling Department of Ivy Cosmetics Company is $314,430. The conversion cost for the period in the Filling Department is $186,300. The total equivalent units for direct materials and conversion are 66,900 ounces and 69,000 ounces, respectively. Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent. Direct materials cost per equivalent unit: $fill in the blank 1 per ounce Conversion costs per equivalent unit: $fill in the blank 2 per ounce
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
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…
The All Ball Company manufactures three products (tennis balls, soccer balls and basket balls). The overhead costs of R180000 have been divided into three cost pools as follows: Ordering: R90000 Labour: R50000 Dispatch: R40000 The activity cost drivers and annual usage have been identified as: Product A Product B Product C No. of labour hours 500 2 000 1 000 No. of machine hours 700 1 000 3 000 No. of orders placed 15 10 25 No. of dispatches 35 15 20 The allocation rate per order using an ABC system is: a. R1800.00 b. R1285.71 c. R6000.00 d. R1000.00 e. R3600.00
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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Lovell Variety Seeds mass produces wildflower seed packs. Relevant information used for the process costing system is provided below: Beginning physical units 2,300 Physical units started 22,600 Units in ending WIP 9,500, 40% complete Beginning costs $3,100 Added direct materials costs $12,000 Added direct labor costs $19,500 Added manufacturing overhead costs $8,600 What is the costs completed and transferred out? Please round your answer to the nearest whole dollar.
Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department Test and Pack Department Blender 750 dlh 2,250 dlh Toaster oven 2,250 750 Total 3,000 dlh 3,000 dlh Four Finger Appliance used direct labor hours to allocate production department factory overhead to products. If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. Assembly Department per direct labor hour Test and Pack Department per direct labor hour b. Determine the total factory overhead and the factory overhead per unit allocated to each product. Product Total Factory Overhead Factory Overhead Per Unit Blender Toaster oven
Factory depreciation Indirect labor Factory electricity Indirect materials Selling expenses Administrative expenses Total costs Tortilla chips Potato chips Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: Budgeted Volume Processing Hours (Cases) Per Case Pretzels Total Tortilla chips Potato chips $24,012 59,508 6,000 6,000 1,200 13,200 Pretzels 6,786 14,094 33,408 18,792 $156,600 Total If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. per processing hour 0.12 0.15 b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted accounting principles. Total Per-Case Factory Overhead Factory Overhead 0.10