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 oduct cost per unit using plantwide Actual Activity Usage Setups Parts Inspections Activity Driver $ 20,000 (20 machine setups) 16,000 (16,000 parts) 24,000 (100 inspections) $ 60,000 Product A 2,000 units $ 30 per unit $50 per unit 2 per unit Using a plantwide overhead rate based on 5,000 direct labor hours, compute the total product cost per unit for each product. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost. compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for ach, and (c) compute product cost per unit for each. Product B 400 units $ 40 per unit $ 60 per unit 2.50 per unit Product A 8 setups 10,000 parts 40 inspections Product B 12 setups 6,000 parts 60 inspections thod and activity-base Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using a plantwide overhead rate based on 5,000 direct labor hours, compute the total product cost per unit for each product.
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 oduct cost per unit using plantwide Actual Activity Usage Setups Parts Inspections Activity Driver $ 20,000 (20 machine setups) 16,000 (16,000 parts) 24,000 (100 inspections) $ 60,000 Product A 2,000 units $ 30 per unit $50 per unit 2 per unit Using a plantwide overhead rate based on 5,000 direct labor hours, compute the total product cost per unit for each product. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost. compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for ach, and (c) compute product cost per unit for each. Product B 400 units $ 40 per unit $ 60 per unit 2.50 per unit Product A 8 setups 10,000 parts 40 inspections Product B 12 setups 6,000 parts 60 inspections thod and activity-base Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using a plantwide overhead rate based on 5,000 direct labor hours, compute the total product cost per unit for each product.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Exercise 17-11 (Algo) Computing product cost per unit using plantwide method and activity-based
costing LO P1, P3
Consider the following data for two products of Vigano Manufacturing.
Budgeted
Coat
Activity
Machine setup
Parts handling
Quality inspections
Total budgeted overhead.
Unit Information
Units produced
Direct materials cost
Direct labor cost
Direct labor hours
Actual Activity Usage
Setups
Parts
Inspections
1. Using a plantwide overhead rate based on 5,000 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.
Activity Driver
$ 20,000 (20 machine setups)
16,000 (16,000 parts)
24,000 (100 inspections)
$ 60,000
Required 1
Product A
2,000 units
$30 per unit
$ 50 per unit
2 per unit
Required 2
Product A
Product D
400 units
$ 40 per unit
$ 60 per unit
2.50 per unit
8 setups
10,000 parts
40 inspections
Product B
12 setups
6,000 parts
Complete this question by entering your answers in the tabs below.
60 inspections
Using a plantwide overhead rate based on 5,000 direct labor hours, compute the total product cost per unit for each product.
CH
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