Required:1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line.Overhead costsO per machine hourMachine hours2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $240 for Model 145 and$140 for Model 212.Overhead AssignedActivity DriverPlantwide OH rateTotal Overhead CostUnits ProducedOH Cost per unitModel 145Model 2122$Model 145Model 2123. If the market price for Model 145 is $745 and the market price for Model 212 is $450, determine the profit or loss per unit for each model.Model 145Model 212Market price Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its componentsdepartment. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, anddrivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should beindicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimalplaces.)ActivityChangeoverMachiningProcessOverhead CostDriverQuantity$ 453,500302,000229,500ComponentsNumber of batches870Machine hours7,640SetupsNumber of setups220$ 985,000$ 181,100227,000Welding hoursNumber of inspectionsFinishingWeldingInspecting4,800790Rework60,250Rework orders200PurchasingProviding spaceProviding utilities$ 468,350$ 137,00030,55060,300SupportPurchase orders458Number of units5,4005,400Number of units$ 227,850Additional production information concerning its two product lines follows.Model 145Model 212Units producedWelding hours1,8001,6003,6003, 200435Batches435Number of inspectionsMachine hours4603302,2905,350Setups110110Rework orders14060Purchase orders305153

Solution:-1 Calculation of overhead rate based on machine hours as follows:-

equired: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs O per machine hour Machine hours 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $240 for Model 145 and $140 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 2$ Model 145 Model 212 3. If the market price for Model 145 is $745 and the market price for Model 212 is $450, determine the profit or loss per unit for each model. Model 145 Model 212 Market price

equired: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs O per machine hour Machine hours 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $240 for Model 145 and $140 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 2$ Model 145 Model 212 3. If the market price for Model 145 is $745 and the market price for Model 212 is $450, determine the profit or loss per unit for each model. Model 145 Model 212 Market price

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

question 8
Commonwealth Company has the following unit costs: direct materials $2, direct labor $4, variable overhead method, what is the total unit cost? O $7 O $5 O $6 O $10
- ok k int ences w 3 E Overhead information for Cran-Mar Company for October follows: Total factory overhead cost incurred Budgeted fixed factory overhead cost Total standard overhead rate per machine hour (MH) D Standard variable factory overhead rate per MH Standard MHS allowed for the units manufactured here to search Required: 1. What is the standard fixed factory overhead rate per machine hour (MH)? 2. What is the denominator activity level that was used to establish the fixed factory overhead application rate? 3. Two-way analysis (breakdown) of the total factory overhead cost variance: calculate the following factory overhead cost variances for October and indicate whether each variance is favorable (F) or unfavorable (U). a. Total flexible-budget variance. b. Production volume variance. c. Total overhead cost variance. 4. Calculate the production volume variance and indicate whether the variance is favorable (F) or unfavorable (U). Complete this question by entering your answers…
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. Determine the tvio production department factory overhead rates. Pattern Department per dlh HIP Jad b. Use the tvo production department factory overhead rates to dezermine the factory overheed per unit for each product. Cut and Sevw Department Small glove per unit nAr iinit
Maglie Company manufactures two video game consoles: handheld and home. The handheld consoles are smaller and less expens than the home consoles. The company only recently began producing the home model. Since the introduction of the new product. profits have been steadily declining. Management believes that the accounting system is not accurately allocating costs to products particularly because sales of the new product have been increasing Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have data from last year. Manufacturing overhead was $1,366,000 based on production of 340.000 handheld consoles and 89,000 home consoles. Direct labor and direct materials costs were as follows. Direct labor Materials Handheld $1,294, 500 790,000 Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead…
Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion The management of Nova Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Nova: $765,000 315,000 $1,080,000 Fabrication Department factory overhead Assembly Department factory overhead Total Direct labor hours were estimated as follows: Fabrication Department Assembly Department Total In addition, the direct labor hours (dlh) used to produce a unit of each product in each department were determined from engineering records, as follows: Production Departments…
Question: Pat Company uses activity-based costing. The company has two products: A and B. The annual production and sales for Product A is 1,800 units and for Product B it's 1,050 units. There are three activity cost pools, with estimated costs and expected activity as follows: Activities Estimated Expected Activity Overhead Cost Product A Product Total B Activity 1 $46,775 1,300 1,200 2,500 Activity 2 $68,277 2,300 1,000 3,300 Activity 3 $82,502 The overhead cost per unit of Product A under activity-based costing is closest to: 720 700 1,420 A. $139.12 B. $68.28 C. $32.88 D. $63.19
Production and cost data Production and sales units Selling price (per unit) Materials (per unit) Labor (per unit) Manufacturing overheads Dept. A Standrad 192000 24000 $15 1.7 4.3 Dept. B Designer wear Number of machine set-ups 4 Marketing overheads $50 8 14.2 24 Engineering and PC Marketing and CS 745200 1296000 Use single-rate; direct method to allocate engineering and marketing overheads Engineering overheads include machine setting ($460,800) and inspection ($284,400) activities. Marketing involves channel ($496,000) and branding ($800,000) activities. The inspection and channel costs are driven by the number of units produced & sold. Computing product costs and profits under conventional and ABC approaches
TB MC Qu. 4-96 Welrlck, Inc., manufactures and sells ... Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Overhead Cost $ 139,900 65,970 1,031,820 $1,237,690 Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS Product T8 Product P4 5,400 1,000 Total 8,100 1,600 2,700 orders 600 MHs 3,100 4,000 7,100 The total overhead applied to Product P4 under activity-based costing is closest to: (Round your Intermedlete calculations to 2 decimal places.) Multiple Cholce $965,850 $581,320 S652.687 Mc Graw Hill 10:55 AM 66°F Mostly cloudy 21 10/20/2021 P Type here to search DELL PgUp PgDn Home F11 F12 PrtScr Insert Delete F8 F9 F10 F2 F5 F6 F7 F3 F4 Num