NONE Hadley, Inc. manufactures a product that uses $25 in directmaterials and $10 in direct labor per unit. Under thetraditional costing system Hadley uses, manufacturingoverhead applied to each unit is $13. However, Hadley isconsidering switching to an ABC system. Under the ABCsystem, the total activity cost would be $30. What is thetotal manufacturing cost per unit for Hadley under the ABCsystem?

Explanation of ABC (Activity-Based Costing) System: Activity-based costing is a costing method that…

Answered: Hadley, Inc. manufactures a product…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...

See similar textbooks

Similar questions

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 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?
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?
Hadley, Inc. manufactures a product that uses $25 in direct materials and $10 in direct labor per unit. Under the traditional costing system Hadley uses, manufacturing overhead applied to each unit is $13. However, Hadley is considering switching to an ABC system. Under the ABC system, the total activity cost would be $30. What is the total manufacturing cost per unit for Hadley under the ABC system? Right Answer
Hadley, Inc. manufactures a product that uses $25 in direct materials and $10 in direct labor per unit. Under the traditional costing system Hadley uses, manufacturing overhead applied to each unit is $13. However, Hadley is considering switching to an ABC system. Under the ABC system, the total activity cost would be $30. What is the total manufacturing cost per unit for Hadley under the ABC system?
What is the total manufacturing cost per unit for Hadley under the ABC system on these accounting question?
The MNL Manufacturing Corp has two production cycles. Choosing Production cycle A involves P54/unit of materials and choosing Production cycle B involves P60/unit of materials. However whatever production cycle, the fixed cost will amount to P40,000.00. What is true regarding the above? A. P40,000 is relevant in production cycle A B. P56/unit of materials is relevant in production cycle A. C. P56/unit and P40,000 is relevant in production cycle B D. P56/unit and P40,000 is relevant in production cycle A
What is the total manufacturing cost per unit under the abc system on these general accounting question?
Moistner, Inc., manufactures and sells two products: Product E6 and Product W9. 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 E6 700 7.0 4,900 Product W9 100 5.0 500 Total direct labor-hours 5,400 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 E6 Product W9 Total Labor-related DLHs $ 233,604 4,900 500 5,400 Machine setups setups 30,942 500 400 900 Order size MHs 712,045 4,200 4,300 8,500 $ 976,591 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of…
Carla Vista Manufacturing manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 2,900 units. The company's Utilities and Maintenance costs are mixed costs. The fixed portions of these costs are $390 and $290, respectively. Calculate the expected costs to be incurred when production is 4,900 units. Use your knowledge of cost behavior to determine which of the other costs are foxed or variable. Production in Units Production Costs a. Direct Materials b. Direct Labor c. Utilities d. Rent e. Indirect Labor f. Supervisory Salaries & Maintenance 2,900 $ 8,961 23,461 1,666 3,900 6,351 2,400 1,711 Costs Incurred $ 4,900 Type of cost 10 0000 F
Carter, Inc. produces two different products, Product A and Product B. Carter uses a traditional volume-based costing system in which direct labor hours are the allocation base. Carter is considering switching to an ABC system by splitting its manufacturing overhead cost of $1,000,000 across three activities: Design, Production, and Inspection. Under the traditional volume-based costing system, the predetermined overhead rate is $2.50/direct labor hour. Under the ABC system, the rate for each activity and usage of the activity drivers are as follows: Activity Rate Usage by Product A Usage by Product B Design (Engineering Hours) $ 600 /hour 200 300 Production (Direct Labor Hours) $ 1.25 100,000 300,000 Inspection (Batches) $ 500 300 100 Required: a. Calculate the indirect manufacturing costs assigned to Product A under the traditional costing system.b. Calculate the indirect manufacturing costs assigned to Product B under the traditional…
SIM Power Ltd., manufactures and sells two products: Product K1 and Product S6. 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 DirectLabour-Hours Product K1 500 8.0 4,000 Product S6 100 5.0 500 Total direct labour-hours 4,500 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 K1 Product S6 Total Labour-related DLHs $127,485 4,000 500 4,500 Production orders orders 27,820 400 600 1,000 General factory MHs 452,868 4,000 3,800 7,800 $608,173 The total overhead cost assigned to of Product S6 under activity-based costing is closest to: Question 11 options:…

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS