Don't use Ai and chatgpt.Answer in step by step with explanation Exercise 17-15 (Algo) Computing activity rates, overhead allocation, and cost per unit LO P3Lucern Company reports the following for its overhead cost for the year.ActivityEngineering supportElectricityBudgeted Cost$ 31,200Setup42,84083,200Budgeted Activity Usage60 design changes3,570 machine hours520 setups1. Compute the activity rate for each activity using activity-based costing.2. The company's Pro model used these activities to produce 1,000 units during the year: 2 design changes, 140 machine hours,and 15 setups. Allocate overhead cost to the Pro model and compute its overhead cost per unit using activity-based costing.Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute the activity rate for each activity using activity-based costing.ActivityEngineering supportElectricitySetupBudgeted CostBudgeted Activity UsageActivity Rate

Required 1: Activity rates Activity rate (Engineering support) = Budgeted cost/Budgeted activity…

Answered: Exercise 17-15 (Algo) Computing…

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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Exercise 17-15 (Algo) Computing activity rates, overhead allocation, and cost per unit LO P3 Lucern Company reports the following for its overhead cost for the year. Activity Budgeted Cost Budgeted Activity Usage Engineering support $ 34,300 70 design changes Electricity 35,400 3,540 machine hours Setup 58,800 490 setups 1. Compute the activity rate for each activity using activity-based costing.2. The company’s Pro model used these activities to produce 1,200 units during the year: 2 design changes, 130 machine hours, and 10 setups. Allocate overhead cost to the Pro model and compute its overhead cost per unit using activity-based costing.
S Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Cost Pool Labor-related (DLHS) Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Product A Product B Product C Product D Cost $ 19,250 $ 1,820 $ 6,320 $ 960 $ 68,600 Total Overhead Cost 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity 1,375 DLHS Expected Activity Product A Product B Product C Product D 300 650 125 300 20 65 180 190 Purchase orders (orders) Product testing (tests) 65 0 80 Template etching (templates) 250 0 26 10 4 General factory (MHs) 3,800 2,000 1,200 2,800 Using the ABC data, determine the total amount of overhead cost assigned to each product. 455 orders 395 tests 40 templates S 9,800 MHs
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 Parts Inspections 1. Using a plantwide overhead rate based on 4,500 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. Required 1 Required 2 Activity Driver $ 18,000 (20 machine setups) 14,400 (16,000 parts) 21,600 (100 inspections) $ 54,000 Product A…
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 Parts Inspections 1. Using a plantwide overhead rate based on 4,250 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. Required 1 Required 2 Activity Driver $ 17,000 (20 machine setups). 13,600 (16,000 parts) 20,400 (100 inspections) $ 51,000 Product A…
QS 17-11 (Algo) Computing activity rates for activity-based costing LO P3 A manufacturer uses activity-based costing to assign overhead cost to products. Budgeted cost information for its activities follows. Activity Cost Driver Purchase orders. Budgeted Cost $ 87,400 97,050 68,550 Budgeted Activity Usage 3,800 purchase orders 4,300 square feet 50 Setups Activity Purchasing Factory services Setup Compute an activity rate for each activity. (Round your answers to 2 decimal places.) Activity Purchasing Factory services Setup Budgeted Cost 87,400 97,050 68,550 Square feet Setups $ $ $ Budgeted Activity Usage Activity Rate
answer with working for clear understanding Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries $ 450,000 Depreciation 175,000 Rent 195,000 Total $ 820,000 The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: Activity Cost Pool Total Activity Assembly 35,000 labor-hours Order processing 450 orders Other Not applicable The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining costs. The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Total Assembly Order Processing Other Wages and salaries 30% 25% 45% 100% Depreciation 15% 45% 40% 100% Rent 35% 30% 35% 100% The activity rate for the Order Processing activity cost pool is closest to: Multiple…
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TB MC Qu. 4-49 Boesenhofer, Inc., manufactures and sells... Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost Product N6 Product N7 Labor-related DLHS Total $345,060 128,534 107,598 2,100 600 4,100 Machine setups 5,000 800 3,800 setups 7,100 Order size MHs 1,400 7,900 $581,192 The activity rate for the Machine Setups activity cost pool is closest to: Multiple Cholce $73.57 per setup $91.81 per setup Prev of 36 Next > 10:54 AM 66°F Mostly cloudy 目。 21 10/20/2021 pe here to search DELL Home End Delete PgUp PgDn F12 PrtScr Insert F10 F11 F8 F9 F7 F4 F5 F6 F3 Num Lock Backspace & %23 %24
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Overhead assigned to KL37?
Exercise 17-19 (Algo) Activity-based costing to compute activity rates, overhead cost per unit, and product cost per unit LO P3 Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Direct materials Direct labor Overhead (using plantwide rate) Total product cost Units produced Product cost per unit Activity Purchasing Depreciation of machinery Setup Total Northwest's controller wants to apply activity-based costing to allocate the $133,600 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. Rounded Edge Squared Edge $ 39,600 $ 51,600 34,400 87,400 $ 173,400 17,200 $ 10.08 13,200 46,200 $ 99,000 Per Unit Rounded Edge Squared Edge 13, 200 $7.50 Budgeted Cost $ 7,000 69,400 57, 200 $ 133,600 Required 3 Direct…

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