Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter G-09 18,400 $7 4 144 G-35 3,688 $ 19 7 72
Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter G-09 18,400 $7 4 144 G-35 3,688 $ 19 7 72
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hansaben
Transcribed Image Text:Required information
Heidelberg Fabrication manufactures two products, G-09 and G-35:
Units produced
Direct materials cost per unit.
Machine-hours per unit
Production runs per quarter
Machine depreciation
Setup labor
Materials handling
Total
Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at
the plant follow:
Required:
G-09
18,400
$7
4
144
a. Overhead rate
b. Machine depreciation
b. Setup labor
b. Materials handling
G-35
3,680
$ 19
7
72
$ 99,360
49,688
39,744
$ 188,784
a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter?
Note: Round your answer to 2 decimal places.
b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for
machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver
rates for the proposed system at Heidelberg.
per machine hour
per machine hour
per production run
% direct material cost
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education