Homework Help is Here – Start Your Trial Now!
Business
Accounting
costing LO P1, P3 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 $ 30,000 (20 machine setups) 24,000 (16,000 parts) 36,000 (100 inspections) $ 90,000 Actual Activity Usage Setups Parta Inspections Product A 3,000 units $ 40 per unit $60 per unit 2 per unit 1. Using a plantwide overhead rate based on 7,500 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 B 600 units $50 per unit $ 70 per unit 2.50 per unit Product A 8 setups 10,000 parta 40 inspections Product B 12 setups 6.000 parts 60 inspections

costing LO P1, P3 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 $ 30,000 (20 machine setups) 24,000 (16,000 parts) 36,000 (100 inspections) $ 90,000 Actual Activity Usage Setups Parta Inspections Product A 3,000 units $ 40 per unit $60 per unit 2 per unit 1. Using a plantwide overhead rate based on 7,500 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 B 600 units $50 per unit $ 70 per unit 2.50 per unit Product A 8 setups 10,000 parta 40 inspections Product B 12 setups 6.000 parts 60 inspections

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
Question

Please do not give solution in image format thanku 

Required 1 Required 2 Using a plantwide overhead rate based on 7,500 direct labor hours, compute the total product cost per unit for each product. Product Cost per Unit Per Unit Product A Product B Direct Materials a. Compute overhead activity rates Activity Direct Labor 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.) Activity Machine setup Parts handling Quality inspection Total allocated cost Units produced Product A Product B Overhead Riquid 1 Machine setup Parts handling per part per inspection Quality inspection b. Allocate overhead to Product A, B and compute overhead cost per unit Allocated Cost $ Activity Rate per setup Overhead cost per unit c. Product cost per unit using activity-based costing Per Unit Product A Product Cost per Unit Required 2 > 0$ < Required 1 Product B 0 Breated 1 P
Transcribed Image Text:Required 1 Required 2 Using a plantwide overhead rate based on 7,500 direct labor hours, compute the total product cost per unit for each product. Product Cost per Unit Per Unit Product A Product B Direct Materials a. Compute overhead activity rates Activity Direct Labor 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.) Activity Machine setup Parts handling Quality inspection Total allocated cost Units produced Product A Product B Overhead Riquid 1 Machine setup Parts handling per part per inspection Quality inspection b. Allocate overhead to Product A, B and compute overhead cost per unit Allocated Cost $ Activity Rate per setup Overhead cost per unit c. Product cost per unit using activity-based costing Per Unit Product A Product Cost per Unit Required 2 > 0$ < Required 1 Product B 0 Breated 1 P
costing LO P1, P3 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 $ 30,000 (20 machine setups) 24,000 (16,000 parts) 36,000 (100 inspections) $ 90,000 Actual Activity Usage Setups Parts Inspections Product A 3,000 units $ 40 per unit $60 per unit 2 per unit 1. Using a plantwide overhead rate based on 7,500 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 B 600 units $50 per unit $ 70 per unit 2.50 per unit Product A 8 setups 10,000 parta 40 inspections Product B 12 setups 6.000 parts 60 inspections
Transcribed Image Text:costing LO P1, P3 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 $ 30,000 (20 machine setups) 24,000 (16,000 parts) 36,000 (100 inspections) $ 90,000 Actual Activity Usage Setups Parts Inspections Product A 3,000 units $ 40 per unit $60 per unit 2 per unit 1. Using a plantwide overhead rate based on 7,500 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 B 600 units $50 per unit $ 70 per unit 2.50 per unit Product A 8 setups 10,000 parta 40 inspections Product B 12 setups 6.000 parts 60 inspections
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Budgeting
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.
Similar questions
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