Drilling Company uses activity-based costing and provides this information:DriverRate$0.8052.002.9031.00Manufacturing ActivityMaterials handlingMachineryAssemblyInspectionCost DriverNumber of partsNumber of machine hoursNumber of partsNumber of finished unitsDrilling has just completed 81 units of a component for a customer. Each unit required 101 parts and 3.05 machine hours. The primecost is $1,310 per finished unit. All other manufacturing costs are classified as manufacturing overhead.Required:1. Compute the total manufacturing costs and the unit costs of the 81 units just completed using ABC costing.2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research anddevelopment and product design, is $181 per unit. The total cost of downstream activities, such as distribution, marketing, andcustomer service, is $301 per unit. Compute the full product cost per unit, including upstream, manufacturing, and downstreamactivities. Also compute the relative proportion of each main cost category.

Activity Based Costing: Overhead and indirect costs are divided across related goods and services…

Answered: Drilling Company uses activity-based…

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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Wykes Metal Working uses a special lathe to shape components. Data on the lathe and its usage follow: Resources used Energy Repairs Resources supplied Energy Repairs Energy Repairs Cost Driver Rate Unused Resource Capacity $ 2.45 per machine-hour $ 5.45 per job $ 6,400 $ 5,250 Cost Driver Volume Required: Compute the cost of unused resource capacity in energy and repairs for Wykes Metal Working. 2,140 machine-hours 720 jobs
Bonita Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product: Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver Orders Setups Machine hours Parts Inspections Est. Overhead $ 80000 258500 1469500 1090000 350000 Cost Driver Activity 500 orders 450 setups 125000 MH 1000000 parts 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) A company is going to use process costing to calculate the cost of its products. The following information has been accumulated: Units Beginning work in process 2,000 Materials 0%, Conversion 20% Units completed and transferred out 10,000 Ending work in process Materials 90%, Conversion 60% 1,800 Beginning inventory cost consists of $2,000 for materials and $3,000 for conversion. The cost per equivalent unit of materials is $4.00 and the cost per equivalent units of conversion is $6.00.What is the amount of material costs that was added during the period using the weighted average method?
H1. Account
Use the following information to answer questions. (Algo) The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost. Inventories [The following information applies to the questions displayed below.] Raw materials Work in process Finished goods Beginning of period $ 48,000 9,000 65,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs End of Period $ 43,000 20,700 34,900 $ 179,000 250,000 12,000 57,500 114,500
2.A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $82,749 and the cost drivers for Product 1 is 359 and 282 for Product 2. The assembling activity pool has estimated costs of $63,039 and the cost drivers for Product 1 is 200 and 300 for Product 2. Direct labor hours for Product 1 is 497and 303 for Product 2. What is the total manufacturing overhead cost to be assigned to Product 1 using a single overhead rate as under tradional cost accounting? Round your final answer to the nearest whole dollar and do not put a dollar sign in your answer.
A company produces pool pumps. Overhead costs have been identified as follows: Activity Pool Cost Material handling Machine maintenance Setups Cost Driver Number of moves Number of machine hours 14 Number of production runs $ 70,840.00 73,000.00 82,038.00 Total Activity 460 36,500 66 Number of moves Economy 10,080 162 The company makes three models of pumps with the following activity demands: Units produced Standard 21,000 132 Premium 3,545 166 Machine hours 9,550 21,800 5,150 Production runs 17 17 32 Required: a. Calculate the activity rate for each activity. b. Determine the amount of indirect costs assigned to each of the products. Complete this question by entering your answers in the tabs below. Required A Required B Determine the amount of indirect costs assigned to each of the products. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places.
Royal Bakery produces three types of products- product A, product B and product C. Product A requires 200 machine setups and machine hours used on it were 1,000. Product B requites 400 machine setups and machine hours used on it were 500. Product C requires 620 machine setups and machine hours used on it were 1,500. The company has defined an activity cost pool machine setups for which the cost driver is number of machine setups. The total overhead cost assigned to that cost pool was OMR 183,000, Estimate the machine setups overhead assigned to each of the products. 10 19 a OMR 30,000 for A OMR 63,000 for 8; OMR 90,000 for C Finish O b. OMR 30.000 for A: OMR 60,000 for B: OMR 93,000 for C OC OMR 61.000 for A OMR 30,500 for 8: OMR 91,500 for C Time le Cd.OMR 61,000 for A: OMR 61,000 for B: OMR 61,000 for C
Telecom uses activity - based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $20.00 of direct materials, includes 50 parts and requires 3 hours of machine time. Additional information follows: Activity Materials handling Machining Assembling Packaging What is the cost of machining per phone? A. $6 B. $9 C. $200 O D. $175 Allocation Base Number of parts Machine hours Number of parts Number of finished units Cost Allocation Rate $3.50 per part $2.00 per machine hour $4.00 per part $3.00 per finished unit
A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine Setups 15 45 $9,600 Assembly Parts 3,000 3,000 143,400 Packaging Pieces 500 400 54,450 Machine Hours per Unit 4 Production Volume 750 1,500 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $ $ B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $ $4
A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $85,557 and the cost drivers for Product 1 is 346 and 237 for Product 2. The assembling activity pool has estimated costs of $67,616 and the cost drivers for Product 1 is 200 and 300 for Product 2. Direct labor hours for Product 1 is 311and 107 for Product 2. What is the total manufacturing overhead cost to be assigned to Product 1 using a single overhead rate as under tradional cost accounting? Round your final answer to the nearest whole dollar and do not put a dollar sign in your answer.
Drilling Company uses activity-based costing and provides this information: Driver Rate Manufacturing Activity Materials handling Machinery Assembly Inspection Cost Driver Drilling has just completed 74 units of a component for a customer. Each unit required 94 parts and 2.70 machine hours. The prime cost is $1,240 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Required 1 Number of parts Number of machine hours Number of parts Number of finished units Required: 1. Compute the total manufacturing costs and the unit costs of the 74 units just completed using ABC costing. 2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $174 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $294 per unit. Compute the full product cost per unit, including upstream, manufacturing, and…

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