Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products: Product-Related Data Scientific Business Units produced per year 73,000 730,000 Prime costs $240,000 $2,400,000 Direct labor hours 95,100 951,000 Machine hours 47,700 477,000 Production runs 100 150 Inspection hours 2,000 3,000 Maintenance hours 2,250 9,000 Department Data Department 1 Department 2 Direct labor hours: Scientific calculator 72,300 22,800 Business calculator 133,140 817,860 Total 205,440 840,660 Machine hours: Scientific calculator 23,500 24,200 Business calculator 394,800 82,200 Total 418,300 106,400 Overhead costs: Setup costs $217,500 $217,500 Inspection costs 185,000 185,000 Power 241,000 157,000 Maintenance 216,000 222,750 Total $859,500 $782,250 Required: 1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor hours. Round your calculations and answers to the nearest cent. Plantwide rate $fill in the blank 1 per direct labor hour Overhead cost per unit: Scientific $fill in the blank 2 per unit Business $fill in the blank 3 per unit 2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 $fill in the blank 4 per machine hour Department 2 $fill in the blank 5 per direct labor hour Overhead cost per unit: Scientific $fill in the blank 6 per unit Business $fill in the blank 7 per unit Repeat using direct labor hours for Department 1 and machine hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 $fill in the blank 8 per direct labor hour Department 2 $fill in the blank 9 per machine hour Overhead cost per unit: Scientific $fill in the blank 10 per unit Business $fill in the blank 11 per unit 3. Compute the overhead cost per unit for each product using activity-based costing. Round your calculations and answers to the nearest cent. Overhead Cost Scientific $fill in the blank 12 per unit Business $fill in the blank 13 per unit

Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products: Product-Related Data Scientific Business Units produced per year 73,000 730,000 Prime costs $240,000 $2,400,000 Direct labor hours 95,100 951,000 Machine hours 47,700 477,000 Production runs 100 150 Inspection hours 2,000 3,000 Maintenance hours 2,250 9,000 Department Data Department 1 Department 2 Direct labor hours: Scientific calculator 72,300 22,800 Business calculator 133,140 817,860 Total 205,440 840,660 Machine hours: Scientific calculator 23,500 24,200 Business calculator 394,800 82,200 Total 418,300 106,400 Overhead costs: Setup costs $217,500 $217,500 Inspection costs 185,000 185,000 Power 241,000 157,000 Maintenance 216,000 222,750 Total $859,500 $782,250 Required: 1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor hours. Round your calculations and answers to the nearest cent. Plantwide rate $fill in the blank 1 per direct labor hour Overhead cost per unit: Scientific $fill in the blank 2 per unit Business $fill in the blank 3 per unit 2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 $fill in the blank 4 per machine hour Department 2 $fill in the blank 5 per direct labor hour Overhead cost per unit: Scientific $fill in the blank 6 per unit Business $fill in the blank 7 per unit Repeat using direct labor hours for Department 1 and machine hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 $fill in the blank 8 per direct labor hour Department 2 $fill in the blank 9 per machine hour Overhead cost per unit: Scientific $fill in the blank 10 per unit Business $fill in the blank 11 per unit 3. Compute the overhead cost per unit for each product using activity-based costing. Round your calculations and answers to the nearest cent. Overhead Cost Scientific $fill in the blank 12 per unit Business $fill in the blank 13 per unit

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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Question

	Product-Related Data
	Scientific	Business
Units produced per year	73,000	730,000
Prime costs	$240,000	$2,400,000
Direct labor hours	95,100	951,000
Machine hours	47,700	477,000
Production runs	100	150
Inspection hours	2,000	3,000
Maintenance hours	2,250	9,000

	Department Data
	Department 1	Department 2
Direct labor hours:
Scientific calculator	72,300	22,800
Business calculator	133,140	817,860
Total	205,440	840,660
Machine hours:
Scientific calculator	23,500	24,200
Business calculator	394,800	82,200
Total	418,300	106,400
Overhead costs:
Setup costs	$217,500	$217,500
Inspection costs	185,000	185,000
Power	241,000	157,000
Maintenance	216,000	222,750
Total	$859,500	$782,250

Required:

1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor hours. Round your calculations and answers to the nearest cent.

Plantwide rate	$fill in the blank 1 per direct labor hour
Overhead cost per unit:
Scientific	$fill in the blank 2 per unit
Business	$fill in the blank 3 per unit

2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required.

Departmental rates:
Department 1	$fill in the blank 4 per machine hour
Department 2	$fill in the blank 5 per direct labor hour
Overhead cost per unit:
Scientific	$fill in the blank 6 per unit
Business	$fill in the blank 7 per unit

Repeat using direct labor hours for Department 1 and machine hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required.

Departmental rates:
Department 1	$fill in the blank 8 per direct labor hour
Department 2	$fill in the blank 9 per machine hour
Overhead cost per unit:
Scientific	$fill in the blank 10 per unit
Business	$fill in the blank 11 per unit

3. Compute the overhead cost per unit for each product using activity-based costing. Round your calculations and answers to the nearest cent.

	Overhead Cost
Scientific	$fill in the blank 12 per unit
Business	$fill in the blank 13 per unit

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