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Gemma Co uses activity based costing to divide overheads between its two products and has the following budgeted information
|
S |
T |
Production level |
80,000 |
120,000 |
Set-ups per batch |
4 |
2 |
Batch size |
5,000 |
4,000 |
Budgeted set-up costs are £74,400
Calculate the cost per set-up and the set-up cost per unit for product T.
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- 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.Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $26.87 per unit, while product B has been assigned $7.62 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Cost Pools Activity Costs $ 415,000 120,000 44,000 The following cost information pertains to the production of A and B, just two of Hakara's many products: Machine setup Materials handling Electric power Number of units produced Direct materials cost Direct labor cost Number of setup hours Pounds of materials used Kilowatt-hours Product A Product B A 5,000 $ 22,000 $ 39,000 Cost per Unit Cost Drivers Setup hours Pounds of materials Kilowatt-hours 200 2,000 4,000 B 20,000 $ 26,000 $ 37,000 Activity Driver Consumption 5,000 15,000 22,000 200 2,000 4,000 Required: 1. Use…A company uses activity-based costing. The company makes two products: A and B. The annual production and sales of A is 400 units at $70 per unit and of B is 200 units at $90 per unit. Direct period costs are $3.000 for each product. There are three activity cost pools, with total allocated cost are as follows: Activity Cost Pools A B. Total Cost Activity 1 Activity 2 Activity 3 $4,280 $2,380 $6,660 1,275 7,175 8,450 2,654 6,877 १531 If the total of direct materials and direct labor costs for Product A is $20,000, the product margin for Product A is: (Enter a number in the box, use a negative sign for a product margin loss) $
- Olmo, Incorporated, manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 600 units and of Product H9 is 600 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product K0 Product H9 Total Labor-related DLHs $ 550,908 3,600 1,800 5,400 Production orders orders 53,919 700 400 1,100 Order size MHs 836,516 4,000 3,100 7,100 $ 1,441,343 The overhead applied to each unit of Product H9 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)Anita Corporation Berhad uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Activity Rate (USD) Setting up batches 86.50 per batch Assembling products 4.63 per assembly hour Processing customer orders 52.16 per customer order Data concerning two products appear below: Product JJ Product SS Number of batches 34 43 Number of assembly hours 105 812 Number of customer orders 17 32 How much overhead cost would be assigned to Product JJ using the company's activity-based costing system? How much overhead cost would be assigned to Product SS using the company's activity-based costing system?Tango Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: ABODO Units produced Batch size (units) Total direct labor hours 7,000 Cost per setup $ 7,000 Use of activity-based costing would allocate the following amounts of setup cost to each unit: (Rounded to the nearest cent.) A) B) C) D) E) Alpha $ 175.00 $ 438.00 $ 12.92 $83.00 $9.00 Multiple Choice Option A Option B Option C Option D Option E Alpha Zeta $ 11.67 $963.14 $ 13.00 $ 20.00 $ 0.11 Zeta 66,000 600 800 40 118,000 $ 7,000
- Olmo, Inc., manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of K0 is 600 units and of Product H9 is 600 units. The company has an activity- based costing system with the following activity cost pools, activity measures, and expected activity. Activity Measures Overhead Cost Product KO Estimated Expected Activity Activity Cost Pools Labor-related Production orders Product H9 Total 9,000 1,300 6,800 DLHS $ 550,408 53,419 836,016 6,000 700 3,800 3,000 orders 600 Order size MHs 3,000 $1,439,843 The overhead applied to each unit of Product KO under activity-based costing is closest to: (Round your Intermedlate calculations to 2 declmal places.) Multiple Cholce $611.60 per unlt $1.438.16 per unit. $778.62 per unit C479 95 nerınlt 3 自! 92°F AQI 61 9/9 pe here to search DELLShilongo Ltd uses Job costing to attribute costs to individual products and services provide to its customers. It has begun the preparation of its fixed production cost budget for the forthcoming period. The company has three production departments Machining, Assembly and Finishing and two service department stores and maintenance. The following costs have been produced: Machining Assembly Finishing Stores Maintenance Overhead costs 6000 2500 1500 1000 800 The number of machine and labour hours budgeted for the forthcoming period is budgeted as follows: Machining Assembly Finishing Machine hours 500 40 50 Labour hours 100 300 200 Overheads are absorbed in Assembly and Finishing departments on a labour hour basis and in Machining department they are absorbed on a machine hour basis. It has been estimated that service departments usage is as follows: Machining Assembly Finishing Stores Maintenance Maintenance 55% 20% 20% 5% - Stores 40% 30% 20% - 10%…A manufacturer uses activity-based costing to assign overhead cost to products. Budgeted cost information for its activities follows. Budgeted Cost $ 210,600 Activity Cost Driver Purchase orders Square feet Budgeted Activity Usage 5,400 purchase orders 5,900 square feet 50 Setups Factory services 104,250 Setup 67,750 Setups Compute an activity rate for each activity. (Round your answers to 2 decimal places.) Activity Purchasing Activity Purchasing Factory services Setup Budgeted Cost 210,600 104,250 67,750 $ $ $ Budgeted Activity Usage Activity Rate
- A company which uses activity-based costing has two products: A and B. The annual production and sales of Product A is 12,000 units and of Product B is 10,500 units. There are three activity cost pools, with total cost and total activity as follows: Total Activity Product Product A Activity Cost Pool Total Cost Total Activity 1 Activity 2 Activity 3 52-54 $25,420 130 490 620 $38,400 $122,670 890 310 1,200 820 3,410 4,230 The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $10.79 $1.60 $4.80 $3.10Brown Dog Company uses activity-based costing (ABC). The company produces two products: CYT56 & RWK29. The annual production and sales volume of CYT56 is 8,000 units and of RWK29 is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs: Activity Estimated Expected Activity Expected Activity Cost Pool Cost CYT56 RWK29 Total Activity 1 Activity 2 Activity 3 $20,000| $37,000| $91,200 100 400 500 1,000 3,800 800 200 800 3,000 Using ABC, the cost per unit of RWK29 is approximately: O $ 2.40 O $12.00 $15.90 $ 3.90Barnett Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. First picture The following information pertains to the three product lines for next year: Second picture Under Barnett's activity-based costing system, what is the per-unit overhead cost of Deluxe? a.$277. b.$267. c.None of the answers is correct. d.$419.