age 2021-08-18 at 11.09.16 AM U.jpgAdd to& Edit & Create vYUESTION 7Elite Ltd produces custom machine parts on a job order basis. The company has two direct product cost categories: direct materials and direct labour. In the past, indirect.manufacturing costs were allocated to products using a single indirect cost pool, allocated based on direct labour hours. The indirect cost rate was $115 per direct labour hour.The company recently adopted an Activity-Based Costing (ABC) system. The manufacturing process has been organised into four activities. The following list indicates the activities,cost drivers, and cost allocation rates.ActivityCost DriverCost per unit of cost driverMaterials HandlingNumber of parts$1.20 per partMilling and AssemblyMachine hours$20.00 per hourInspectionNumber of units produced$25.00 per unitShippingNumber of orders shipped.$1500.00 per orderThe company's information system automatically collects the necessary data for their above mentioned activities. The data for two recently completed jobs are shown below.Job order 410Job order 411$59,900$9,700Direct material cost$11,250$750Direct labour costSave All AnswersClose WindowClick Save and Submit to save and submit. Click Save All Answers to save all answers.DELL11:30°C Rain showersヘ回 )8/18ype here to search p Image 2021-08-18 at 11.09.58 AM.jpegRemaining Time: 2 hours, 05 minutes, 43 seconds.Question Completion Status:ShippingNumber of orders shipped$1500.00 per orderThe company's information system automatically collects the necessary data for their above mentioned activities. The data for two recently completed jobs are shownJob order 410Job order 411Direct material cost$9,700$59,900Direct labour cost$750$11,250Number of direct labour hours25375Number of parts5002,000Number of machine hours1501050Number of orders shipped1.200Number of units produced10Required:a. Compute the'manufacturing cost per unit for job orders 410 and 411 under the old, traditional costing system. .b. Under the new ABC system, calculate the manufacturing cost per unit for job orders 410 and 411.*Please indicate which question you are answering for each.Save All AnswersClick Save and Submit to save and submit. Click Save All Answers to save all answers.11:24 AO 30°C Rain showers8/18/202P Type here to search

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Description: age 2021-08-18 at 11.09.16 AM U.jpgAdd to& Edit & Create vYUESTION 7Elite Ltd produces custom machine parts on a job order basis. The company has two direct product cost categories: direct materials and direct labour. In the past, indirect.manufactu

Activity-based costing is the method of costing used to allocate the indirect cost to the product or…

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Elite Ltd produces custom machine parts on a job order basis. The company has two direct product cost categories: direct materials and direct labour. In the past, indirect manufacturing costs were allocated to products using a single indirect cost pool, allocated based on direct labour hours. The indirect cost rate was $115 per direct labour hour The company recently adopted an Activity-Based Costing (ABC) system. The manufacturing process has been organised into four activities. The following list indicates the activities, cost drivers, and cost allocation rates. Save Antweed Activity Cost Driver Cost per unit of cost driver Materials Handling Number of parts $1.20 per part Milling and Assembly Machine hours $20.00 per hour Inspection Number of units produced $25.00 per unit Shipping Number of orders shipped. $1500.00 per order The company's information system automatically collects the necessary data for their above mentioned activities. The data for two recently completed jobs are shown below. Job order 410 Job order 411 $59,900 Direct material cost $9,700 $11,250 $750 Direct labour cost Close Window Save All Answers

Elite Ltd produces custom machine parts on a job order basis. The company has two direct product cost categories: direct materials and direct labour. In the past, indirect manufacturing costs were allocated to products using a single indirect cost pool, allocated based on direct labour hours. The indirect cost rate was $115 per direct labour hour The company recently adopted an Activity-Based Costing (ABC) system. The manufacturing process has been organised into four activities. The following list indicates the activities, cost drivers, and cost allocation rates. Save Antweed Activity Cost Driver Cost per unit of cost driver Materials Handling Number of parts $1.20 per part Milling and Assembly Machine hours $20.00 per hour Inspection Number of units produced $25.00 per unit Shipping Number of orders shipped. $1500.00 per order The company's information system automatically collects the necessary data for their above mentioned activities. The data for two recently completed jobs are shown below. Job order 410 Job order 411 $59,900 Direct material cost $9,700 $11,250 $750 Direct labour cost Close Window Save All Answers

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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hine Ltd manufactures two products, Exe and Zed. Currently, overheads are apportioned using a traditional absorption costing basis. You are the cost accountant and from the class discussion on activity based costing (ABC), you are considering its implementation in your company for the purposes of charging overheads to production. The following information has been provided: Type of cost Amount Current basis Volume related costs Sh. 600,000 Machine hours Purchasing related cost Sh.420,000 Labour hours Set-up costs Sh. 360,000 Labour hours Extracts from the standard costs show the following: EXE ZED Labour hours per unit 4 2 Machine hours per unit 2 2 Budgeted production next year 20,000 10,000 Number of purchase orders per annum 150 60 Number of machine set-up per annum 70 50 Under traditional absorption costing, determine the overhead charged to product Exe? Select one: A.…
Nobel Ltd adopts process costing rather than job costing. Which of the following statement could explain why? a. Nobel Ltd produces units according to customer specifications. b. Nobel Ltd wants to track the cost of material, labour and overhead to specific customers. c. Nobel Ltd wants to assign overhead using machine hours as the allocation base. d. Nobel Ltd manufactures virtually identical products using a series of continuous processes.
Classic manufacturing costing system uses a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The following items (in millions) pertain to Classic Corporation. Requirement Prepare an income statement and a supporting schedule of cost of goods manufactured. Begin by preparing the supporting schedule of cost of goods manufactured (in millions). Start with the direct materials and direct labor costs, then indirect manufacturing costs, and complete the schedule by calculating cost of goods manufactured. For Specific Date Work-in-process inventory, January 1, 2020 $12 Direct materials inventory, December 31, 2020 8 Finished-goods inventory, December 31, 2020 11 Accounts payable, December 31, 2020 20 Accounts receivable, January 1, 2020 59 Work-in-process inventory, December 31, 2020 1 Finished-goods inventory, January 1, 2020 46 Accounts receivable, December 31,…
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are alloceted to three activity cost pools based on resource consumption, Data used in the first stage allocations follow Overhead costs: Equipment depreciation Supervisory expense $ 81,300 $ 2,200 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation Supervisory expense 0.50 0.30 0. 20 e. 30 e.50 0.20 Mechining costs are assigned to products using machine-hours (MHs) and Order Filing costs are essigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity date for the companve o nroducts follaw You ae sren sharg Skop Share Activity MHs (Machining) Orders (Order Filling) Product Me 1,630 9,780 1,370…
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Rates $8.00 per direct labor-hour Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments $9.00 per machine-hour $ 50.00 per setup $100.00 per order $ 180.00 per shipment General factory $9.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Unit product cost Total Expected Activity J76 379 900 2,900 4 8 12 852 50 20 B52 4 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 378 $ 4.50 $ 4.75 4,000 852 $ 45.00 $10.00. 500
The following figure depicts the complete system that Office Inc. uses to estimate the total cost of each office desk and office chair that it produces. How many cost pools does Office Inc.'s 2-stage costing system use for Office Chair objects? A. 7 B. 0 C. 6 D. 5 E. 4 F. 2 G. 1 H. 3 I. 8
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Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four activity cost pools, which are listed below, along with their activity measures and activity rates: Activity Cost Pool Supporting direct labor. Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers Activity Rate $10 per direct labor-hour $90 per batch $286 per order $ 2,602 per customer The company just completed a single order from Interstate Trucking for 2,800 custom seat cushions. The order was produced in four batches. Each seat cushion required 0.3 direct labor-hours. The selling price was $141.10 per unit, the direct materials cost was $102 per unit, and the direct labor cost was $14.20 per unit. This was Interstate Trucking's only order during the year. Required: Calculate the customer margin on sales to Interstate Trucking for the…
what is the labor-related activity cost pool per DLH what is the machine-related activity cost pool per MH what is the machine setups activity cost pool per seteup what is the production orders activity cost per order what is the product testing activity cost per test what is the packaging activity cost per package what is the general factory activity cost per DLH
Teach Gear Inc. produces 3 types of office equipment; Bronze, silver and Gold and uses an activity-based product costing system. They have identified 5 activities. Each activity, it costs and related activity driver is summarized below: Activity Material handling Material insertion Activity Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Cost Tasks: Automated Machinery finishing Packaging The following data are provided for each product line: Activity driver Number of parts Number of parts 350,000 Machine hours 150,000 Labor hours 90,000 Orders shipped Bronze P120,000 240,000 6,000 1,200 4. 1 2 Silver 4,000 800 5 2 3 Gold 2,000 400 8 3 لنا Make a narrative recommend the unit cost per unit of Bronze, Silver and Gold using the ABC system. In support of your recommendation show your solution presenting: 1. The computation of the activity cost rates 2. the computation of the estimated volume (TOTAL PARTS, TOTAL MACHINE HOURS,…
Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Processing Supervising Other Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the other activity cost pool are not assigned to products. Activity data appear below: Product MO Product M5 Total $ 3,800 $ 23,800 $ 10,400 MHs (Processing) 9,700 300 10,000 Sales (total) Direct materials (total) Direct labor (total) Batches (Supervising) 500 500 1,000 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product Mº $ 74,100 $ 28,500 $ 27,800 Product M5 $ 89,900 $ 31,400 $ 41,700
Shine Ltd manufactures two products, Exe and Zed. Currently, overheads are apportioned using a traditional absorption costing basis. You are the cost accountant and from the class discussion on activity based costing (ABC), you are considering its implementation in your company for the purposes of charging overheads to production. The following information has been provided: Type of cost Amount Current basis Volume related costs Sh. 600,000 Machine hours Purchasing related cost Sh.420,000 Labour hours Set-up costs Sh. 360,000 Labour hours Extracts from the standard costs show the following: EXE ZED Labour hours per unit 4 2 Machine hours per unit 2 2 Budgeted production next year 20,000 10,000 Number of purchase orders per annum 150 60 Number of machine set-up per annum 70 50 Required: Using ABC system, what is the overhead per unit for product Zed? Select one: A. Sh. 23.5 B.…