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Direct materials Direct labor EX300 $372,325 $126,000 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity Cost Pool (and Activity Measure) Total TX500 $168,550 $540,875 $ 45,500 $171,500 Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost Manufacturing Overhead $ 201,875 213,900 141,600 77,175 $634,550 EX300 96,000 105 1 $126,000 Activity TX500 65,500 360 1 $45,500 Total 161,500 465 2 $171,500 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product.

Direct materials Direct labor EX300 $372,325 $126,000 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity Cost Pool (and Activity Measure) Total TX500 $168,550 $540,875 $ 45,500 $171,500 Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost Manufacturing Overhead $ 201,875 213,900 141,600 77,175 $634,550 EX300 96,000 105 1 $126,000 Activity TX500 65,500 360 1 $45,500 Total 161,500 465 2 $171,500 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Complete this question by entering your answers in the tabs below. Req 1A Unit product cost Using the plantwide rate, compute the unit product cost for each product. (Round your intermediate calculations and final answers to 2 decimal places.) EX300 TX500 Req 1A Req 1B Machining Setups Product-level General factory Complete this question by entering your answers in the tabs below. Activity Cost Pools Req 1B Req 1A Req 2A Unit product cost Compute the activity rate for each activity cost pool. (Round your Machining and General factory activity rates to 2 decimal places.) Req 1B Req 2B < Req 1A Req 2A EX300 Activity Rate per MHR Complete this question by entering your answers in the tabs below. Req 2A Reg 2B per setup hr. per product per DLS TX500 < Req 1B Req 2A > Req 2B Using the activity rates, compute the unit product cost for each product. (Round your intermediate calculations and final answers to 2 decimal places.) < Req 2A Req 2B > Req 28 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Req 1A Unit product cost Using the plantwide rate, compute the unit product cost for each product. (Round your intermediate calculations and final answers to 2 decimal places.) EX300 TX500 Req 1A Req 1B Machining Setups Product-level General factory Complete this question by entering your answers in the tabs below. Activity Cost Pools Req 1B Req 1A Req 2A Unit product cost Compute the activity rate for each activity cost pool. (Round your Machining and General factory activity rates to 2 decimal places.) Req 1B Req 2B < Req 1A Req 2A EX300 Activity Rate per MHR Complete this question by entering your answers in the tabs below. Req 2A Reg 2B per setup hr. per product per DLS TX500 < Req 1B Req 2A > Req 2B Using the activity rates, compute the unit product cost for each product. (Round your intermediate calculations and final answers to 2 decimal places.) < Req 2A Req 2B > Req 28 >
Precision Manufacturing Inc. (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 66,000 units of EX300 and 13,100 units of TX500. The company's conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: Direct materials Direct labor The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: EX300 TX500 Total $372,325 $168,550 $540,875 $126,000 $ 45,500 $171,500 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost Req 1A Complete this question by entering your answers in the tabs below. Req 1B Req 2A Req 2B Manufacturing Overhead $ 201,875 213,900 141,600 77,175 $634,550 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product. per DLS EX300 96,000 105 1 < Req 1A $126,000 Activity TX500 65,500 360 1 $45,500 Total 161,500 Req 1B > 465 2 Compute the plantwide overhead rate that would be used in the company's conventional cost system. (Round your answer to 2 decimal places.) Predetermined overhead rate $171,500
Transcribed Image Text:Precision Manufacturing Inc. (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 66,000 units of EX300 and 13,100 units of TX500. The company's conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: Direct materials Direct labor The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: EX300 TX500 Total $372,325 $168,550 $540,875 $126,000 $ 45,500 $171,500 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost Req 1A Complete this question by entering your answers in the tabs below. Req 1B Req 2A Req 2B Manufacturing Overhead $ 201,875 213,900 141,600 77,175 $634,550 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product. per DLS EX300 96,000 105 1 < Req 1A $126,000 Activity TX500 65,500 360 1 $45,500 Total 161,500 Req 1B > 465 2 Compute the plantwide overhead rate that would be used in the company's conventional cost system. (Round your answer to 2 decimal places.) Predetermined overhead rate $171,500
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