Problem Activity Based CostingZeta company has identified the following overhead costs and costdrivers for the upcoming yearExpectedCostsOverhead ItemCost DriverQuantityNumber ofSetup costs$45,000300setupsNumber ofMaterial Handling$90,0007,500material movesNumber ofQuality Cost$150,0006,000InspectionsMachining Cost$67,500 Machine Hours900Total$352,500The following information was collected on three jobs that werecompleted during the yearJob 201$6,000$2,800Job 202$12,000$2,000Job 203$8,000$4,000Direct materialsDirect laborUnits completed30150Direct labor-hours182215Machine hours105010Number of setups14Number of Inspections1030Number of material1050movesFor the year the company budgeted direct labor cost of $100,000,budgeted direct material cost of $280,000, and estimated labor hoursof 5,000.Determine the unit cost for each job using Activity Based Costing.(Round amounts to 2 decimal places.)2030

Answered: Image /qna-images/answer/361c9384-6c1a-46ba-b978-44238599381c.jpg

Answered: Determine the unit cost for each job…

Business

Accounting

Determine the unit cost for each job using Activity Based Costing. (Round amounts to 2 decimal places.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Home Work $ 40 17 $ 66 Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per nonth 32 363 574 620 units 330 units Harbour has monthly overhead of $186,075, which is divided into the following cost pools: $ 91,300 53,975 40,800 Setup costs Quality control Maintenance Total $186,075 The company has also compiled the following information about the chosen cost drivers: Work Total Home 38 Number of setups Number of inspections Number of machine hours 1,600 72 110 330 305 635 1,800 3,400 Required: 1. Suppose Harbour uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Overhead Assigned Home Model: Work Model: Total Overhead Cost 2. Calculate…
Your Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Estimated Expected Activity Activity Cost Pool Cost Product A Product B Total Activity 1 $17,600 700 300 1,000 Activity 2 $32,600 600 200 800 Activity 3 $52.500 900 500 1,400 What is the activity rate under the activity-based costing system for Activity 1? O $17.60 $58.33 O $37.50 $40.75. O $25.14
Compute equivalent units of production for materials and for conversion costs. Determine the unit costs of production. (Round unit costs to 2 decimal places,e.g. 2.25 . ) Show the assignment of costs to units transferred out and in process.Units transferred outsUnits in ending work in processseTextbook and MediaBaden Company has gathered the following information.Costs incurred:
Single Plantwide Rate and Activity-Based Costing Whirlpool Corporation (WHR) conducted an activity-based costing study of its Evansville, Indiana, plant in order to identify its most profitable products. Assume that we select three representative refrigerators (out of 333): one low-, one medium-, and one high-volume refrigerator. Additionally, we assume the following activity-base information for each of the three refrigerators: Three Representative Number of Machine Number of Number of Sales Number of Refrigerators Hours Setups Orders Units Refrigerator-Low Volume 24 14 38 160 Refrigerator-Medium Volume 225 13 88 1,500 Refrigerator-High Volume 900 120 6,000 Prior to conducting the study, the factory overhead allocation was based on a single machine hour rate. The machine hour rate was $200 per hour. After conducting the activity-based costing study, assume that three activities were used to allocate the factory overhead. The new activity rate information is assumed to be as follows:…
Baden Company has gathered the following information. Units in beginning work in process 0 Units started into production 37,000 Units in ending work in process 7,000 Percent complete in ending work in process: Conversion costs Materials Costs incurred: Direct materials Direct labor Overhead 4 80 40 % 100 % $73,000 $61,100 $101,100
! Required information [The following information applies to the questions displayed below.] For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.20 hours of direct labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to products on the basis of direct labor-hours. Despite the growing popularity of the company's new LEC 90, profits have been declining steadily. Management is beginning to believe that there may be a problem with the company's costing system. Direct material and direct labor costs per unit are as follows: Direct materials Direct labor…
Which three items must ALWAYS be the same number on a production cost report? Group of answer choices Total column of the “Total costs, month of” row; Total column of the “Total Costs” row in the “Costs” section; and Total column of the “Total Costs” row in the “Cost Reconciliation” section. Total units in production, Total units under the “physical units” column, and Total units under the “materials – equivalent units” column. Unit costs for materials, labor, and manufacturing overhead. Ending WIP inventory amounts for materials, conversion costs, and total costs.
Flexible budgets are determined and all overhead cost items are assigned on the basis Exercise 6-17 Reliance, Inc. utilizes a standard cost system for budget and control purposes. Flexible budgets are determined and all overhead cost items are assigned on the basis of standard direct labor hours. The following standard cost per finished unit was determined on the basis of a projected monthly normal production for 2020: Direct materials (3 pounds @ P6.00) Direct labor (0.30 hour @P40.00) Variable overhead (0.30 hour @P10) Fixed overhead ().30 hour @ P6-2/3) P18.00 12.00 3.00 2.00 Total P35.00 You have just received the condensed performance report for the month of Sept., 2020. VARIANCE ANALYSIS Quantity Capacity or time or Standard Price or Сaрacity Costs Rate Efficiency P6,000 U 1,200 U Variances Direct materials used Direct labor costs Variable overhead Fixed overhead Applied P162,000 108,000 27,000 18,000 P14,000 F *18,200 U 5,250 U 300 U P4,000** U 1,500 U *Includes labor joint…
Use the following data to answer the question. Inputs of Labor Total Product 0 1 2 3 4 5 6 7 The average product (AP) when seven units of labor are hired is Multiple Choice O O -3. 0 10 22 36 48 58 66 63 18.
How to solve the factory overhead rate of 2/3 of the labor cost?
Info in images Required: 1. Compute the product margins for the B300 and T500 under the company’s traditional costing system. 2. Compute the product margins for B300 and T500 under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. 1. Compute the product margins for the B300 and T500 under the company’s traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) B300 T500 Total Product margin $0 2. Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 T500 Total Product margin $0 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2…
25: 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: Activity Budgeted Activity Cost Activity Base Casting $570,000 Machine hours Assembly 80,000 Direct labor hours Inspecting Setup Materials handling 42,000 Number of inspections Number of setups 38,000 23,750 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 6,000 13,000 19,000 Direct labor hours 3,000 2,000 5,000 Number of inspections 600 400 1,000 Number of setups 300 200 500 Number of loads 450 500 950 Units produced 6,000 3,000 9,000