Heidelberg Fabrication manufactures two products, G-09 and G-35:Units producedDirect materials cost per unitMachine-hours per unitProduction runs per quarterMachine depreciationSetup laborProduction at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at theplant follow:Materials handlingTotalG-0919,700$ 74G-353,940$ 19772$ 106,38053,19042,552$ 202,122a. Overhead rateb. Machine depreciationb. Setup laborb. Materials handlingExercise 9-36 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4)Required: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 formachine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driverrates for the proposed system at Heidelberg.per machine hourper machine hourper production run% direct material cost

Predetermined Overhead Rate:— It is the rate used to allocate manufacturing overhead cost to cost…

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 G-09 19,700 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: Required: $7 4 144 a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling G-35 3,940 $ 19 7 72 $ 106,380 53,190 42,552 $ 202,122 Exercise 9-36 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4) 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

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 G-09 19,700 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: Required: $7 4 144 a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling G-35 3,940 $ 19 7 72 $ 106,380 53,190 42,552 $ 202,122 Exercise 9-36 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4) 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

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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