Expected CostSetting up equipmentOrdering materials$141,00010,80087,500MachiningReceiving25,500Silven produces two models of cell phones with the following expected activity demands:Model X5,20080200Units completedNumber of setupsNumber of ordersMachine hoursReceiving hoursRequired:ActivityModel XModel YModel XModel Y5,000425Model XModel Y156,100108,7001. Determine the total overhead assigned to each product using the four activity drivers.Total Overhead Assigned$✓Total Overhead AssignedXModel YActivity Driver Activity CapacityNumber of setupsNumber of ordersMachine hoursReceiving hours2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activitiesin proportion to their costs. Round interim calculations to two decimal places and round your final answers to the nearest dollar.Percentage Error10,400%%404003,7508501206008,7501,2753. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places.

Name: Expected CostSetting up equipmentOrdering materials$141,00010,80087,5
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Description: Expected CostSetting up equipmentOrdering materials$141,00010,80087,500MachiningReceiving25,500Silven produces two models of cell phones with the following expected activity demands:Model X5,20080200Units completedNumber of setupsNumber of ordersMac

Activity-Based Costing (ABC) is a cost allocation and accounting method used by organizations to…

Business

Accounting

Expected Cost $141,000 10,800 87,500 Machining Receiving 25,500 Silven produces two models of cell phones with the following expected activity demands: Model X Activity Setting up equipment Ordering materials Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model X Model Y 5,200 80 200 5,000 425 Model X Model Y Model Y Total Overhead Assigned X 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned 156,100 ✔ 108,700 Activity Driver Number of setups Number of orders Machine hours Receiving hours 10,400 40 400 3,750 850 Percentage Error % % 2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. Round interim calculations to two decimal places and round your final answers to the nearest dollar. Activity Capacity 120 600 8,750 1,275 Model X Model Y 3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places.

Expected Cost $141,000 10,800 87,500 Machining Receiving 25,500 Silven produces two models of cell phones with the following expected activity demands: Model X Activity Setting up equipment Ordering materials Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model X Model Y 5,200 80 200 5,000 425 Model X Model Y Model Y Total Overhead Assigned X 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned 156,100 ✔ 108,700 Activity Driver Number of setups Number of orders Machine hours Receiving hours 10,400 40 400 3,750 850 Percentage Error % % 2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. Round interim calculations to two decimal places and round your final answers to the nearest dollar. Activity Capacity 120 600 8,750 1,275 Model X Model Y 3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places.

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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Required information Lakeside Incorporated manufactures four lines of remote control boats and uses activity-based costing to calculate product cost. Activity Pools Machining Setup Quality control Cost Pool Machining Setup Quality Control Total Overhead Estimated Total Cost $ 679,400 105,950 164,900 Required: Suppose the Speedy boat requires 2,840 machine hours, 100 batches, and 300 inspections. Using the activity rates. determine the amount of overhead assigned to the Speedy product line. Note: Do not round your intermediate calculations and round your final answers to the nearest dollar amount. Allocated Overhead $ Estimated Cost Driver 0 21,500 machine hours 520 batches 970 inspections
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