Freda Company manufactures two products (D and F). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers: Number of Setups Machine Hours Packing Orders Product D 10 F 10 Cost per pool $11,000 500 75 2,000 175 $60,000 $18,750 What is the allocation rate per setup using activity-based costing?
Q: Please provide answer financial accounting
A: Total Periods: Total Periods = Years to Maturity * Compounding Periods per Year Total Periods = 28 *…
Q: Need Correct solution.
A: Step 1: Understand the ComponentsPretax accounting income: $1,500,000Income from exempt municipal…
Q: General Accounting Question
A: Step 1: Summing the variable costs per unitVariable Costs per Unit=Direct materials + Direct labor +…
Q: Answer me fast to this accounting question
A: Explanation of Transaction Flow Mapping: This is a detailed visual representation of how…
Q: Kavya Co. Had installment sales of 1,000,000 and...
A: Explanation of Installment Sales: Installment sales represent transactions where the buyer pays for…
Q: Provide correct answer general accounting
A: Step 1: Define Price Earnings RatioPrice Earnings ratio refers to the ratio which states the number…
Q: This week, your assignment will involve creating dashboards using Power BI and identifying audit…
A: First, log into the Connect platform using your credentials. Once logged in, follow the instructions…
Q: Flynn Company uses a perpetual inventory system and reported $526,000 of inventory at the beginning…
A: Step 1: Understand the ProblemFlynn Company uses a perpetual inventory system, meaning:Inventory is…
Q: Required: Refer to case 1 shown above. Alpha Division can avoid $2 per unit in commissions on any…
A:
Q: Strict warning: Don't us Ai tools, otherwise I will report
A: Press Release: Paying the Penalty Set by SEC and Drawing Attention to Actions TakenOscar Brands,…
Q: B-MED is a medical equipment distributor that sells and services General Electric Healthcare,…
A: Answer 1) Two chances of changes that were not accepted by the management in the given case are as…
Q: Cost Account
A: Step 1: Understand the LCM RuleThe lower-of-cost-or-market (LCM) rule states that inventory should…
Q: Metlock Inc., a greeting card company, had the following statements prepared as of December 31,…
A: 1. Operating ActivitiesNet Income:From the Income Statement: $24,900Adjustments for Non-Cash…
Q: General accounting
A: Step 1: Define Net IncomeNet income remains after the sales are counted and the bills are…
Q: posting this questions please solve. Subject = General Account
A: Step 1: Key InformationForeign income: $100,000Host country tax rate: 25%U.S. tax rate: 35%Bilateral…
Q: Subject :- General Account
A: To determine the minimum price at which producing and selling the product becomes profitable, we…
Q: ??
A: Question 1: Integrated Control FrameworksIntegrated control frameworks work through a cohesive…
Q: Required: Compute the Office Products Division’s ROI for this year. Compute the Office Products…
A: Current ROI Net operating income = $800,000 Operating assets = $4,000,000 ROI = $800,000 ÷…
Q: 32 A company is preparing financial statements immediately after the holders of convertible…
A: A loss if the dollar amounts of preferred stock and additional paid-in capital in excess of par are…
Q: Please help tutor
A: Explanation of Temporal SequencingTemporal sequencing refers to the process of recording…
Q: Hi please solve this question. Note. General Account Subject
A: Hello student! In a manufacturing business, costs are typically classified as:Product Costs - costs…
Q: General accounting question
A: To value the record collector's collection today we use the PV concept where we dis-count the future…
Q: answer this financial accounting question
A: Explanation of Cash Provided by Operating Activities:Cash provided by operating activities refers to…
Q: want account solution
A: Step 1: Analyze the ItemsInterest, bonds issued by City of Austin, Texas ($4,800):Interest from…
Q: Provide correct answer general accounting
A: Step 1: Requirements of the questionIn this question, we are required to match the terms with their…
Q: A staff member at Cedar Grove Medical Supply conducted the monthly inventory audit. The computerized…
A: Explanation of Inventory Audit: An inventory audit is a systematic process of verifying the actual…
Q: Subject. Cost Account
A: Information Provided:Pretax book income: $415,000Favorable temporary differences:…
Q: General Accounting Question solution with correct option
A: Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…
Q: Need Solution in this Account questions
A: Step 1: Understanding Variable CostingUnder variable costing, only variable manufacturing costs…
Q: Rede Inc. manufactures a single product. Variable costing net operating income was $63,800 last year…
A: Determine the absorption costing net operating income, we need to adjust the variable costing net…
Q: What is your total return for last year on these financial accounting question?
A: Step 1: Define Overall Returns on StocksThe total returns on stocks can be bifurcated into dividend…
Q: coursehero.com/qa/wait/72332969/?question_id=72332969 Question: Need Answer of this Question with…
A: Turnover = Sales / Average Operating AssetsWe are given:Sales = $11,520,000Average Operating Assets…
Q: CORRECT OPTION?
A: FEEL FREE TO ASK FOR CLARIFICATIONS
Q: 18 At year end, a company has a pending lawsuit concerning damages for a defect in one of its…
A: Correct: A. The amount can reasonably be estimated and it is probable that company will lose the…
Q: ??
A: Explanation of Allocation Sequences:Allocation sequences refer to the order in which costs or…
Q: subject : general accounting
A: Return on Assets (ROA): A financial metric that measures a company's profitability relative to its…
Q: Please given answer general accounting
A: Step 1: Define Individual Gross IncomeAn individual gross income combines all sources of income…
Q: Need this account questions solution
A: determine the net total dollar advantage or disadvantage of purchasing the part instead of making…
Q: I don't need ai answer accounting questions
A: To find Ritter Company's taxable income, the relationship between taxable income and taxes paid is…
Q: At Bargain Electronics, it costs $33 per unit ($18 variable and $15 fixed) to make an MP3 player at…
A: Reject Order:If Bargain Electronics rejects the special order, they will not generate any additional…
Q: 21 A company currently has the following accounts: ⚫ Cash: $7,000 Accounts Receivable (net): $11,000…
A: Current Ratio = Current Assets / Current LiabilitiesCurrent Assets = Cash + Accounts Receivable +…
Q: Solve General Accounting
A: Step 1: Compute the expected ending inventoryBeginning inventory: $526,000Purchases: $52,000COGS:…
Q: Nani Lighting Inc.
A: Step 1: Given Total cost = Product cost + Selling and administrative expenseTotal cost = $125 per…
Q: Hello course hero please provide correct answer not use ai accounting question
A: We are given the following information:Present Value (PV) = $12,800Future Value (FV) =…
Q: How much cash did the business collect from customers on these general accounting question?
A: Step 1: Define Cash and Cash EquivalentsCash and cash equivalents are line items on a company's…
Q: You find a zero coupon bond with a par value of...
A: Steps to solve this : Step 1 :
Q: General Account questions please answer it
A: b. A rent check received on December 30 by the manager of an apartment complex. The manager normally…
Q: Get correct answer accounting
A: Step 1: Define OverheadThe overhead is the indirect product cost of the company's finished goods.…
Q: Given answer accounting questions
A: Step 1:First calculate the growth rate: Growth rate = Retention ratio * Return on equity…
Q: Value of unaccounted inventory?
A: Explanation of Beginning BalanceThe beginning balance refers to the quantity of inventory that is…
Freda Company Manufacturing 2 products d and f.
Step by step
Solved in 2 steps
- Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?Evans, Inc., has a unit-based costing system. Evanss Miami plant produces 10 different electronic products. The demand for each product is about the same. Although they differ in complexity, each product uses about the same labor time and materials. The plant has used direct labor hours for years to assign overhead to products. To help design engineers understand the assumed cost relationships, the Cost Accounting Department developed the following cost equation. (The equation describes the relationship between total manufacturing costs and direct labor hours; the equation is supported by a coefficient of determination of 60 percent.) Y=5,000,000+30X,whereX=directlaborhours The variable rate of 30 is broken down as follows: Because of competitive pressures, product engineering was given the charge to redesign products to reduce the total cost of manufacturing. Using the above cost relationships, product engineering adopted the strategy of redesigning to reduce direct labor content. As each design was completed, an engineering change order was cut, triggering a series of events such as design approval, vendor selection, bill of materials update, redrawing of schematic, test runs, changes in setup procedures, development of new inspection procedures, and so on. After one year of design changes, the normal volume of direct labor was reduced from 250,000 hours to 200,000 hours, with the same number of products being produced. Although each product differs in its labor content, the redesign efforts reduced the labor content for all products. On average, the labor content per unit of product dropped from 1.25 hours per unit to one hour per unit. Fixed overhead, however, increased from 5,000,000 to 6,600,000 per year. Suppose that a consultant was hired to explain the increase in fixed overhead costs. The consultants study revealed that the 30 per hour rate captured the unit-level variable costs; however, the cost behavior of other activities was quite different. For example, setting up equipment is a step-fixed cost, where each step is 2,000 setup hours, costing 90,000. The study also revealed that the cost of receiving goods is a function of the number of different components. This activity has a variable cost of 2,000 per component type and a fixed cost that follows a step-cost pattern. The step is defined by 20 components with a cost of 50,000 per step. Assume also that the consultant indicated that the design adopted by the engineers increased the demand for setups from 20,000 setup hours to 40,000 setup hours and the number of different components from 100 to 250. The demand for other non-unit-level activities remained unchanged. The consultant also recommended that management take a look at a rejected design for its products. This rejected design increased direct labor content from 250,000 hours to 260,000 hours, decreased the demand for setups from 20,000 hours to 10,000 hours, and decreased the demand for purchasing from 100 component types to 75 component types, while the demand for all other activities remained unchanged. Required: 1. Using normal volume, compute the manufacturing cost per labor hour before the year of design changes. What is the cost per unit of an average product? 2. Using normal volume after the one year of design changes, compute the manufacturing cost per hour. What is the cost per unit of an average product? 3. Before considering the consultants study, what do you think is the most likely explanation for the failure of the design changes to reduce manufacturing costs? Now use the information from the consultants study to explain the increase in the average cost per unit of product. What changes would you suggest to improve Evanss efforts to reduce costs? 4. Explain why the consultant recommended a second look at a rejected design. Provide computational support. What does this tell you about the strategic importance of cost management?
- The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?Rex Industries has two products. They manufactured 12,539 units of product A and 8.254 units of product B. The data are: What is the activity rate for each cost pool?
- Rocks Industries has two products. They manufactured 12,539 units of product A and 8.254 units of product B. The data are: Â What is the activity rate for each cost pool?Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?Plata Company has identified the following overhead activities, costs, and activity drivers for the coming year: Plata produces two models of microwave ovens with the following activity demands: The companys normal activity is 21,000 machine hours. Calculate the total overhead cost that would be assigned to Model X using an activity-based costing system: a. 230,000 b. 240,000 c. 280,000 d. 190,000
- Larsen, Inc., produces two types of electronic parts and has provided the following data: There are four activities: machining, setting up, testing, and purchasing. Required: 1. Calculate the activity consumption ratios for each product. 2. Calculate the consumption ratios for the plantwide rate (direct labor hours). When compared with the activity ratios, what can you say about the relative accuracy of a plantwide rate? Which product is undercosted? 3. What if the machine hours were used for the plantwide rate? Would this remove the cost distortion of a plantwide rate?Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: aCalculated using number of dies as the single unit-level driver. bCalculated by multiplying the consumption ratio of each product by the cost of each activity. Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each product. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities. 2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome. 3. What if activities 1, 2, 5, and 8 each had a cost of 650,000 and the remaining activities had a cost of 50,000? Calculate the cost assigned to Wafer A by a fully specified ABC system and then by an approximately relevant ABC approach. Comment on the implications for the approximately relevant approach.Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
