Green Co. uses 6 machine hours and 2 direct labor hours to produce Product A. It uses 8 machine hours and 16 direct labor hours to produce Product B. Green's Assembly and Finishing departments have factory overhead rates of $240 per machine hour and $160 per direct labor hour, respectively. How much total factory overhead will be allocated to a unit of each of the two products?
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- Ship Co. produces storage crates that require 1.2 meters of material at $.85 per meter and 0.1 direct labor hours at $15.00 per hour. Overhead is applied at the rate of $9 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?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.…[The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts Direct Labor- Hours per unit 0.60 0.60 Additional information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $14. b. The direct labor wage rate is $20 per hour. Activity Cost Pool Machine setups Special processing General factory c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Annual Production Activity Cost Pool Machine setups Special processing General factory 26,000 units 84,000 units $ 14.00 Activity Measure Number of setups Machine-hours Direct labor-hours X Answer is not complete. Activity Rate Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Estimated Overhead Cost $ 39,480 $…
- 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?Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W2 400 5 2,000 Product P8 500 4 2,000 Total direct labor-hours 4,000 The direct labor rate is $37.10 per DLH. The direct materials cost per unit is $203.60 for Product W2 and $140.30 for Product P8. 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 W2 Product P8 Total Labor-related DLHs $ 218,576 2,000 2,000 4,000 Production orders orders 18,538 400 380 780 Order size MHs 202,886 3,880 3,680 7,560 $ 440,000 Which of the…A company makes four products that have the following characteristics: Product A sells for $75 but needs $40 of materials to produce; Product B sells for $90 but needs $65 of materials to produce; Product C sells for $110 but needs $80 of materials to produce; Product D sells for $135 but needs $105 of materials to produce. The processing requirements for each product on each of the four machines are shown in the table. Processing Time (min/unit) A Work Center W 8 4 12 10 14 10 12 8 10 9 12 9 6. Y Vork centers W, X, Y, and Z are available for 5 days per week, 1 shift per day (8 hrs.) and have no setup me when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the uestions that follow, the traditional method refers to maximizing the contribution margin per unit for ach product, and the bottleneck method refers to maximizing the contribution margin per minute at the ottleneck for each product. Each worker is paid $15 per hour and is paid for an…
- Nachor Company manufactures two products. Product A has 800 units produced, require 200 material moves and one direct labor hour per unit; Product B has 1,600 units produced, require 800 material moves and two direct labor hours per unit. The materials handling costs $2,000,000. Under the Activity Based Costing, the material handling costs allocated to each unit of A and B would be, respectively: $500 and $500 $500 and $1,000 $1,000 and $1,000 $1,000 and $2,000 None of the aboveCrystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?Kirsten believes her company's overhead costs are driven (affected) by the number of direct labor hours because the production process is very labor Intensive. During the period, the company produced 4,700 units of Product A requiring a total of 770 labor hours and 2,200 units of Product B requiring a total of 170 labor hours. What allocation rate should be used if the company Incurs overhead costs of $15,980? Multiple Choice $17.00 per labor hour $2.32 per unit $20.75 per labor hour for Product A and $94 per labor hour for Product B None of these.
- Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. Amount Descriptions Assembly Fabrication Trombones Trumpets Tubas TotalYour Company makes three products in a single facility. These products have the following unit product costs: Product A Product B Product C Direct material $26.00 $26.00 $27.00 Direct labor 15.00 17.00 16.00 Variable manufacturing overhead 4.00 5.00 6.00 Fixed manufacturing overhead 21.00 28.00 23.00 Unit cost $66.00 $76.00 $72.00 Additional data concerning these products are listed below: Product A Product B Product C Mixing minutes per unit 3 2 2.5 Selling price per unit $76.00 $90.00 $84.00 Variable selling cost per unit $4.00 $3.00 $5.00 Monthly demand in units 1,500 3,000 4,000 The mixing machines are potentially the constraint in the production facility. A total of 18,000 minutes is available per month on these machines. Direct labor is a variable cost in this company. Required: How many minutes of mixing machine time would be required to satisfy demand for all three products?Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit 0.60 0.20 Annual Production 11,000 units 47,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $32 in direct materials per unit, and Sprockets require $15. b. The direct labor wage rate is $17 per hour. c. Hubs require special equipment and are more complex to manufacture than Sprockets. d. The ABC system has the following activity cost pools: Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 26,460 $ 150,500 $ 53,600 Required: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system. Hubs 140 4,300 ΝΑ Activity Sprockets 112 0 ΝΑ Total 252 4,300 ΝΑ