Gelinas, Inc., manufactures and sells two products: Product S5 and Product L3. Expected production of Product S5 is 500 units and of Product L3 is 700 units. The company has an activity-based costingsystem with the following activity cost pools, activity measures, and expected activity:EstimatedExpected ActivityActivityOverheadActivity Cost PoolsLabor-relatedProduction ordersMeasuresCost$286,74140,384463,730Product S5Product L3TotalDLHS3,5005,6009,100оrders300500800Order sizeMHs4,0003,9007,900$790,855The overhead applied to each unit of Product L3 under activity-based costing is closest to: (Round your Intermedlate calculations to 2 declmal places.)Multiple Cholce$327.04 per unit$61518 per unitS659.05 per unit.< Prev3 of 10Next >92 F AQI 619Ape here to searchDELL近

Answer - Calculation of Overhead applied to each unit of Product L3 under ABC : Particulars…

Answered: Gelinas, Inc., manufactures and sells…

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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Larner Corporation is a diversified manufacturer of industrial goods. Ine company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates $ 9.00 per direct labor-hour $ 4.00 per machine-hour $70.00 per setup $ 200.00 per order $ 130.00 per shipment $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year 378 $ 4.50 B52 $ 46.00 $ 3.25 4,000 $ 4.00 500 Total Expected Activity 378 B52 Direct labor-hours 1,500 50 Machine-hours 2,400 50 Machine setups 3 2 Production orders 4 2 Shipments 9 2 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Prev 3 of 6 Novt C
Ashvin
Tesh, Inc., manufactures and sells two products: Product P9 and Product I9. Data concerning the expected production of each product and the expected total direct labour-hours (DLHs) required to produce that output appear below: Expected Production Direct Labour-Hours Per Unit Total Direct Labour-Hours Product P9 200 7.0 1,400 Product I9 400 6.0 2,400 Total direct labour-hours 3,800 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product P9 Product I9 Labour-related DLHs $71,136 1,400 2,400 Machine setups setups 42,880 300 200 General factory MHs 406,620 4,200 3,900 $520,636 The activity rate for the Machine setups activity cost pool under activity-based costing is closest to: a. $1,041.27 per setup b. $85.76 per setup c. $214.40 per setup d.…
Dhapa
ABC Company uses activity-based costing to allocate MOH. The company has 2 products d and e. The annual production of sales of Product d are 1,000 units and product e is 3000 units. There are three activity cost pool of MOH with an estimated total cost of $69,000. What is the MOH cost per unit for product d under activity-based costing? Expected Activity (Allocation base) Total Activity Cost pool (for MOH) Activity 1 Activity 2 Activity 3 Estimated Cost of MOH Product d Product e $9000 500 500 1000 12000 200 200 500 48,000 500 1100 1600
Ivanhoe Company produces two products: Standard and Deluxe. The company uses an activity-based costing system. Ivanhoe produced 8400 units of Standard and 2400 units of Deluxe. The company uses two activity cost pools, with estimated total cost and activity as follows: Expected Activity Activity Cost Pool Estimated Cost Standard Deluxe #1 $12400 540 290 #2 $24400 440 1240 What is the cost per unit of Standard under activity-based costing? $14.52 $7.50 $1.72 $14.94
Assume that company makes only two products: Product A and Product B. The company’s activity-based costing system has allocated $144,000 to an activity called machine setups. It is considering allocating the machine setups cost to its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures: Product A Product B Number of machine setups 30 45 Number of setup hours per setup 6 6 If the company uses number of setup hours as the activity measure, what is the activity rate for machine setups? rev: 10_30_2021_QC_CS-283805 Garrison 17e Rechecks 2021-11-13 Multiple Choice $11,825 $12,000 $320 $350
Consider the following production and cost data for two products, X and Y, manufactured by Company. Product X Product Y Sales price per unit $52 $40 Direct materials cost per unit $18 $8 Direct labor hours per unit 1.5 1.0 Machine hours per unit 3.0 2.0 The labor rate is $10 per hour. Variable overhead is $2 per direct labor hour. The company can hire sufficient labor for any production level. The company has 15,000 machine hours available each period. There is unlimited demand for each product. Assuming a company has achieved a reasonable level of cost accuracy, what is the most important determinant of whether cost information should be even more accurate?
Requ Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B Product C 26,000 2,800 40 Total Cost of Pool Cost Driver $250,600 Number of machine hours 61,600 Number of design hours 66,402 Number of batches Product A Product B Product C Total Overhead Assigned 36,000 1,600 170 Estimated Cost Driver 71,600 7,000 465 9,600 2,600 255 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. (Do not round your intermediate calculations. Round your final answers to nearest whole number.)
Godiva company has two products, A and B. The company uses activity-based costing to allocate overhead costs of $100,000. Data relating to the company's activity pools for the current year are given below: Cost Pool Total cost in Total Number of Activity Measures Used Cost Pool Product A Product B Total Activity 1 $42,000 100 200 300 Activity 2 $10,000 20 5 25 Activity 3 $48,000 3,000 3,000 6,000 Compute the activity rate (allocation rate) for Activity 2: $500 $2,000 $400 $140
XYZ Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changin to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount XY Production setups Number of setups 24 82.000 12 Material handling Number of parts 48,000 56 24 Packaging costs Number of units 130,000 80,000 50,000 $ 260,000 What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)? Select one: O a. $2.27. Ob. none of the given answer. Oc $2.33. 2d $1.83. 2e s179.
A company uses activity-based costing to calculate the unit cost of its products. The figures for Period 3 are as follows: Production set-up costs: £84,000. Total production is 40,000 units of each of products A and B, and each run is 2,000 units of A or 5,000 units of B. What is the set-up cost per unit of B? A. £0.10 B. £0.08 C. £0.60 D. £0.29

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