$137,314 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Quantity/Amount Consumed by Quantity/Amount Consumed by Luxury 59 moves Cost Assigned to Pool 3,024 Activity Cost Pools Materials handling Quality control Machine maintenance Cost Driver Basic Number of moves Number of inspections $ $ 27,590 $106,700 5,700 machine hours 4,000 machine hours 13 moves 220 inspections 110 inspections Number of machine hours Required: 1. Suppose Hazelnut used 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.)

$137,314 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Quantity/Amount Consumed by Quantity/Amount Consumed by Luxury 59 moves Cost Assigned to Pool 3,024 Activity Cost Pools Materials handling Quality control Machine maintenance Cost Driver Basic Number of moves Number of inspections $ $ 27,590 $106,700 5,700 machine hours 4,000 machine hours 13 moves 220 inspections 110 inspections Number of machine hours Required: 1. Suppose Hazelnut used 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Estimated wheels produced Direct labor hours per wheel (al) Your answer is correct. Overhead rate $ eTextbook and Media (a2) Total estimated overhead costs for the two product lines are $752,600. Car Car wheels 41,000 Calculate overhead rate. (Round answer to 2 decimal places, eg 12.25) $ 1 Truck wheels $ Truck 10,000 3 Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. 10.60 per direct labor hour Attempts: 1 of 5 used
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A-6
Data concerning three of Kilmon Corporation’s activity cost pools appear below: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembling products $ 65,540 4,520 assembly hours Designing products $ 578,112 3,011 product design hours Setting up batches $ 41,820 820 batch set-ups Required: Compute the activity rates for each of the three cost pools. (Round your answers to 2 decimal places.) Activities Activity rate Assembly products Designing products Setting up batches
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