Create a spreadsheet with an output section that: (i) determines the six overhead application rates to use under activity-based costing (be sure to label these!) (j) determines the total cost to manufacture one unit electronic keyboard using activity-based costing (show material, labor and overhead separately to enhance manager usefulness) (k) determines the total cost to manufacture one unit digital piano using activity-based costing (show material, labor and overhead separately to enhance manager usefulness) (L) calculates a suggested new selling price for each item based on recent industry reports that indicate most companies similar to ours determine selling price by taking cost and adding 20 percent of cost as markup.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 12E: a. Based on the data in Exercise 17-11, determine the following: 1. Cost of beginning work in...
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Manufacturing Overhead
Indirect Materials
Supervision
Building depreciation
Maintenance
Purchasing
Inspection
Amount
$ 22,100
45,368
67,200
23,800
19,812
16,320
Cost Driver
Number of Units
Number of Inspections
Square Footage
Direct Labor Hours
Number of Purchase Orders
Number of Inspections
Electronic
Keyboard
700
700
14,000
9,800
700
700
Digital
Piano
300
900
6,000
4,200
900
900
Create a spreadsheet with an output section that:
(i) determines the six overhead application rates to use under activity-based costing (be sure to label these!)
(j) determines the total cost to manufacture one unit electronic keyboard using activity-based costing (show
material, labor and overhead separately to enhance manager usefulness)
(k) determines the total cost to manufacture one unit digital piano using activity-based costing (show material,
labor and overhead separately to enhance manager usefulness)
(L) calculates a suggested new selling price for each item based on recent industry reports that indicate most
companies similar to ours determine selling price by taking cost and adding 20 percent of cost as markup.
Transcribed Image Text:Manufacturing Overhead Indirect Materials Supervision Building depreciation Maintenance Purchasing Inspection Amount $ 22,100 45,368 67,200 23,800 19,812 16,320 Cost Driver Number of Units Number of Inspections Square Footage Direct Labor Hours Number of Purchase Orders Number of Inspections Electronic Keyboard 700 700 14,000 9,800 700 700 Digital Piano 300 900 6,000 4,200 900 900 Create a spreadsheet with an output section that: (i) determines the six overhead application rates to use under activity-based costing (be sure to label these!) (j) determines the total cost to manufacture one unit electronic keyboard using activity-based costing (show material, labor and overhead separately to enhance manager usefulness) (k) determines the total cost to manufacture one unit digital piano using activity-based costing (show material, labor and overhead separately to enhance manager usefulness) (L) calculates a suggested new selling price for each item based on recent industry reports that indicate most companies similar to ours determine selling price by taking cost and adding 20 percent of cost as markup.
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9781337912020
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Publisher:
South-Western College Pub