Given the following information, determine the activity rate for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 9,300 $59,800 Inspections 24,400 $121,200 Assembly (dlh) 71,500 $424,600

Given the following information, determine the activity rate for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 9,300 $59,800 Inspections 24,400 $121,200 Assembly (dlh) 71,500 $424,600

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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Given the following information, determine the activity rate for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 10,300 $52,700 Inspections 24,800 $135,700 Assembly (dlh) 78,400 $376,100 a.$4.80 b.$5.12 c.$4.97 d.$5.47
Planning budget: Sales volume = 40,000. Actual results: Sales price = $10.00. Consider the following budget information: RU per Cost per Cost per Cost per Finished Resource Finished Planning Finished Unit (FU) Unit (RU) Unit (FU) Budget Actual Unit (FU) Sales - Total $s DM - Materials Direct labor Variable overhead $360,000 $390,000 5.00 100,000 107,250 $0.25 $0.40 80,000 $1.90 4.00 68,250 Fixed expenses 100,000 Net income 25,400 Actual income EXCEEDS flexible budget income by: $9,400 $12,300 $14,400 $20,200
Activity Budgeted Overhead Cost Budgeted Activity Handling materials $ 625,000 100,000 parts Quality inspection 90,000 1,500 inspections Purchasing 25,000 1,000 orders Total $ 740,000 1. Compute a single plantwide overhead rate assuming that the company allocates overhead cost based on 10,000 budgeted direct labor hours.2. The standard model uses 5 direct labor hours per unit, and the fast model uses 10 direct labor hours per unit. Compute overhead cost per unit for each model.
Question Content Area Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: Units Setups Inspections Assembly (dlh) Small table lamps 3,000 8,000 9,000 16,000 Desk lamps 6,000 16,000 15,000 12,000 Activity Total Activity-Base Usage Budgeted Activity Cost Setups 24,000 $60,000 Inspections 24,000 120,000 Assembly (dlh) 28,000 280,000 The total factory overhead to be allocated to desk lamps is a.$235,000 b.$230,000 c.$306,667 d.$225,000
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activities are shown in the following table: Activity Activity 1 Activity 2 Activity 3 Budgeted Cost $ 74,000 $ 49,000 $ 90,000 Select one: O a. $83,708.19 O b. $65,450.72 Oo. $213,000.00 O d. $74,000.00 Oe. $63,322.32 Activity Cost Driver Square feet Units inspected Setups Budgeted Activity Product B Product A 6,400 7,400 2,900 9,400 15,400 1,400 Product C 20,400 8,400 2,025 How much overhead will be assigned to Product B using activity-based costing? (Do not round intermediate calculations and round the final answer to 2 decimal places.)
Troglodyte University uses activity-based costing to assign indirect costs to academic departments, using three activities. The activity base, budgeted activity cost, and estimated activity-base usage for each activity are identified as follows: Budgeted Activity-Base Activity Activity Base Activity Cost Usage Facilities Square feet $800,000 80,000 square feet Instruction Number of course sections 1,200,000 600 sections Student services Number of students 290,000 2,500 students The activity-base usage associated with the Archaeology and Geology departments is as follows: Department Facilities Instruction Student Services Archaeology 8,000 square feet 8 sections 150 students Geology 5,200 square feet 15 sections 200 students a. Determine the activity rate for each activity. Activity Activity Rate Facilities per sq. ft. Instruction per section Student services per student b. Determine the total activity cost for the Archaeology Department. Total activity cost Next
Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity Driver Machine setup $ 19,000 (20 machine setups) Parts handling 15,200 (16,000 parts) Quality inspections 22,800 (100 inspections) Total budgeted overhead $ 57,000 Unit Information Product A Product B Units produced 1,900 units 380 units Direct materials cost $ 29 per unit $ 39 per unit Direct labor cost $ 49 per unit $ 59 per unit Direct labor hours 2 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 4,750 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. Actual Activity Usage Product A…
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The Culver Division operates as a profit center. It reports the following for the year ending December 31, 2022. Sales Variable costs Controllable fixed costs Noncontrollable fixed costs Budgeted $2,320,000 V 928,000 458,000 290,000 $ Actual tA $2,192,400 881,600 Prepare a responsibility report for the Culver Division at December 31, 2022. 458,000 290,000 Budget $ tA $ CULVER DIVISION Responsibility Report Actual $ LA Difi Fa Unfa Neithel nor Ur
Service Department Charges and Activity Bases Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers with Computing and Communications Services (CCS) service department costs. The following table identifies an abbreviated list of service categories and activity bases used by the CCS department. The table also includes some assumed cost and activity base quantity information for each service for October. CCS ServiceCategory Activity Base Budgeted Cost Budgeted ActivityBase Quantity Help desk Number of calls $132,650 3,500 Network center Number of devices monitored 630,400 9,850 Electronic mail Number of user accounts 64,800 7,200 Handheld technology support Number of handheld devices issued 133,920 9,300 One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: The sector has…
Direct Labor Cost Budget Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel departments so that there will be enough labor available for production. Before you make any changes to the budget, you review the information on the following Direct Labor Data Table and enter the units to be produced from the Production Budget. After scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget you prepared. When required, round your answers to the nearest dollar. Direct Labor Data Table Gluing Assembly Hours required per unit: Basic abacus 0.10 0.10 Deluxe abacus 0.10 0.20 Labor hourly rate: Gluing $13 Assembly $19 Units to be…
Computing product costs in an activity-based costing system Franklin, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers hate identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 2018 and their allocation bases are as follows Franklin expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 4,000 parts, require 10 setups, and consume 1,000 hours of finishing time. Requirements Compute the predetermined overhead allocation rate for each activity. Compute the expected indirect manufacturing cost of each bumper.