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Exercise 17-11 (Algo) Computing product cost per unit using plantwide method and activity-based costing LO P1, P3 Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Unite produced Direct materials cost Direet labor cost Direct labor hours Activity Driver $ 26,000 (20 machine setups) 20,800 (16,000 parts) 31,200 (100 inspections) $ 78,000 Product A 2,600 unita $26 per unit $ 56 per unit 2 per unit Actual Activity Usage Setups Parto Inspections Product 520 unita 46 per unit $ 66 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 6,500 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Product A setups 10,000 parts 40 inspections Complete this question by entering your answers in the tabs below. Product D 12 setups 6,000 parts 60 inspections

Exercise 17-11 (Algo) Computing product cost per unit using plantwide method and activity-based costing LO P1, P3 Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Unite produced Direct materials cost Direet labor cost Direct labor hours Activity Driver $ 26,000 (20 machine setups) 20,800 (16,000 parts) 31,200 (100 inspections) $ 78,000 Product A 2,600 unita $26 per unit $ 56 per unit 2 per unit Actual Activity Usage Setups Parto Inspections Product 520 unita 46 per unit $ 66 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 6,500 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Product A setups 10,000 parts 40 inspections Complete this question by entering your answers in the tabs below. Product D 12 setups 6,000 parts 60 inspections

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using a plantwide overhead rate based on 6,500 direct labor hours, compute the total product cost per unit for each product. Direct Materials Product Cost per Unit Per Unit Product A Product B a. Compute overhead activity rates Activity Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. (Round your final answers to 2 decimal places.) Machine setup Parts handling Quality inspection Activity Rate per setup per part per inspection b. Allocate overhead to Product A, B and compute overhead costiper unit Allocated Cost Direct Labor Activity Machine setup Parts handling Quality inspection Total allocated cost Units produced Product A Product B Overhead Product A Overhead cost per unit c. Product cost per unit using activity-based costing Per Unit Product Cost per Unit < Required 1 Required 2 Product B
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using a plantwide overhead rate based on 6,500 direct labor hours, compute the total product cost per unit for each product. Direct Materials Product Cost per Unit Per Unit Product A Product B a. Compute overhead activity rates Activity Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. (Round your final answers to 2 decimal places.) Machine setup Parts handling Quality inspection Activity Rate per setup per part per inspection b. Allocate overhead to Product A, B and compute overhead costiper unit Allocated Cost Direct Labor Activity Machine setup Parts handling Quality inspection Total allocated cost Units produced Product A Product B Overhead Product A Overhead cost per unit c. Product cost per unit using activity-based costing Per Unit Product Cost per Unit < Required 1 Required 2 Product B
Exercise 17-11 (Algo) Computing product cost per unit using plantwide method and activity-based costing LO P1, P3 Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Actual Activity Usage Setups Parta Activity Driver $ 26,000 (20 machine setups) 20,800 (16,000 parts) 31,200 (100 inspections) $ 78,000 Inspections Product A * 2,600 unita $26 per unit $ 56 per unit 2 per unit 1. Using a plantwide overhead rate based on 6,500 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Product D 520 unite 46 per unit $ 66 per unit 2.50 per unit Product A setupa 10,000 parts 40 inspections Product B 12 setups. 6,000 parts 60 inspections Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Exercise 17-11 (Algo) Computing product cost per unit using plantwide method and activity-based costing LO P1, P3 Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Actual Activity Usage Setups Parta Activity Driver $ 26,000 (20 machine setups) 20,800 (16,000 parts) 31,200 (100 inspections) $ 78,000 Inspections Product A * 2,600 unita $26 per unit $ 56 per unit 2 per unit 1. Using a plantwide overhead rate based on 6,500 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Product D 520 unite 46 per unit $ 66 per unit 2.50 per unit Product A setupa 10,000 parts 40 inspections Product B 12 setups. 6,000 parts 60 inspections Complete this question by entering your answers in the tabs below.
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