Hours per Unit 0.60 Annual Production Product A Product B 23,000 units 44,000 units 0.20 Additional Information about the company follows: a. Direct materials per unit is $32 for Product A and $13 for Product B. b. The direct labor wage rate is $11 per hour. c. Product A requires a special process that is not required for Product B. d. The following activity cost pools are used by the company's ABC system. Expected Activity Product B Estimated Activity cost Pool (and Activity Measure) Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) Overhead Cost Product A 16,065 $ 135,000 $ 226,000 Total 85 68 153 4,500 13,800 4,500 22,600 8,see Required: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using ABC costing, determine the total cost per unit of Product A and Product B. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Product A Product B Direct materials Direct labor Manufacturing overhead Unit product cost < Required 1 Required 2 >

Hours per Unit 0.60 Annual Production Product A Product B 23,000 units 44,000 units 0.20 Additional Information about the company follows: a. Direct materials per unit is $32 for Product A and $13 for Product B. b. The direct labor wage rate is $11 per hour. c. Product A requires a special process that is not required for Product B. d. The following activity cost pools are used by the company's ABC system. Expected Activity Product B Estimated Activity cost Pool (and Activity Measure) Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) Overhead Cost Product A 16,065 $ 135,000 $ 226,000 Total 85 68 153 4,500 13,800 4,500 22,600 8,see Required: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using ABC costing, determine the total cost per unit of Product A and Product B. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Product A Product B Direct materials Direct labor Manufacturing overhead Unit product cost < Required 1 Required 2 >

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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Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output Inputs Standard Price or Rate Direct materials $ 7.30 per liter $24.70 per hour $ 6.20 per hour 7.70 liters Direct labor 0.50 hours Variable manufacturing overhead 0.50 hours The company has reported the following actual results for the product for September: Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production 9,900 units 76,500 liters $585,500 76,240 liters 4,650 hours $120,302 $ 23,614 Actual direct labor-hours Actual direct labor cost Actual variable overhead cost Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September.…
A company which uses activity-based costing has two products: A and B. The annual production and sales of Product A is 12,000 units and of Product B is 10,500 units. There are three activity cost pools, with total cost and total activity as follows: Total Activity Product Product A Activity Cost Pool Total Cost Total Activity 1 Activity 2 Activity 3 52-54 $25,420 130 490 620 $38,400 $122,670 890 310 1,200 820 3,410 4,230 The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $10.79 $1.60 $4.80 $3.10
Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $215,160 Machine hours Assembly 189,550 Direct labor hours Inspecting 30,520 Number of inspections Setup 39,730 Number of setups Materials handling 36,960 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 5,180 4,600 9,780 Direct labor hours 4,460 6,690 11,150 Number of inspections 1,660 520 2,180 Number of setups 230 60 290 Number of loads 700 180 880 Units produced 10,400 5,200 15,600 a. Determine the activity rate for each activity. If required, round the rate to the…
Urban Company reports the following information regarding its production cost: Units produced Direct labor Direct materials Variable overhead Fixed overhead Compute product cost per unit under variable costing. Multiple Choice O $24.00 $47.46 $54.00 26,000 units $ 19 per unit $ 24 per unit $ 11 per unit $ 116,000 in total $19.00
Course: Accounting for Decision Making and Control The West Point plan of Walkers Electronics Company has the following standards for component C91: Standards: Material 2 units of material B Material Price $10 per unit of B Direct labor 1 hour Wage rate $10 per direct labour hour Variable support cost rate $25 per direct labour hour Actual results for March Used 4,200 units of B, purchased at $9.75 per unit of B Paid for 2,000 direct labour hours at $11 per hour Incurred $48,000 of variable support costs Manufactured 2,000 units of component C91 Required: Determine any (5) five of following variances for March: Total direct material…
Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Activity Rate Travel $ 2 per mile driven Deliveries $ 50 per delivery Customer service $ 22 per phone call Two of the company's many customers include Customer A and Customer B. These two customers consumed the company's activities as follows: Total Expected Activity Customer A Customer B Travel (number of miles driven) 300 250 Deliveries (number of deliveries) 15 5 Customer service (number of phone calls) 20 12 If the company earned $1,130 in revenue serving Customer B, then what is the customer margin for this customer? Multiple Choice $96 $156 $116 $136
Dirickson Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Standard Quantity or Inputs Hours per Unit of Output Standard Price or Rate Direct materials 7.6 ounces $ 9.40 per ounce $ 18.00 per hour $ 5.30 per hour Direct labor 0.10 hours Variable manufacturing overhead 0.10 hours The company has reported the following actual results for the product for July: Actual output 7,600 units Raw materials purchased 63,000 ounces Actual cost of raw materials purchased Raw materials used in production $ 541,800 57,750 ounces Actual direct labor-hours 820 hours Actual direct labor cost $ 16,072 $ 4,592 Actual variable overhead cost The raw materials price variance for the month is closest to:
A standard cost card for one unit of a product may look like the following: Direct materials (4 pounds @ $1.25 per pound) $5.00 Direct labor (0.1 DLH @ $18 per hour) 1.80 Variable overhead (0.1 DLH @ $2.00 per hour) 0.20 Fixed overhead (0.1 DLH @ $4.60 per hour) 0.46 Total cost per unit $7.46 The standard cost to produce one unit is $7.46. The standard cost to produce 600 units are $ Of course, this is a simplification as the standard cost does not take fixed and variable costs into account. However, if the firm is producing at or near capacity, then the cost per unit of $7.46 could be multiplied by total units to get total standard cost. The standard cost card gives both unit and cost standards. The direct materials total of $5.00 is based on the use of four pounds of material at $1.25 per pound. Similarly, it should take six minutes (0.1 direct labor hour) to produce one unit. This makes it easy to determine total quantities and cost would be for multiple units. If 400 units were…
Standard Product CostsDeerfield Company manufactures product M in its factory. Production of M requires 2 pounds of material P, costing $8 per pound and 0.5 hour of direct labor costing, $14 per hour. The variable overhead rate is $12 per direct labor hour, and the fixed overhead rate is $16 per direct labor hour. What is the standard product cost for product M? Direct material Answer Direct labor Answer Variable overhead Answer Fixed overhead Answer Standard product cost per unit Answer
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) Process Activity Components Changeover Machining Overhead Cost $ 500,000 279,000 225,000 $1,004,000 Driver Quantity Number of batches Machine hours Number of setups 800 6,000 Setups 120 Finishing Welding Inspecting $ 180,300 210,000 75,000 $ 465,300 135,000 32,000 65,000 $ 232,000 Welding hours Number of inspections J,000 700 Rework Rework orders 300 Support Purchasing Providing apace Providing utilities Purchase orders Number of units 450 5,000 5,000 Number of units Additional…
Assume a company's activity-based costing system Includes three activities. The following Information is avallable with respect to those activitles: Estimated Overhead Activity Cost Pol Travel Cost Expected Activity $ 150,000 $ 110,000 $ 220,000 100.000 miles driven Deliverles 2,200 customer deliverles Customer service 10,000 phone calls What is the activity rate for the Travel activity? Multiple Choice $1.50 per mile driven $15.00 per mile driven $0.15 per mile driven $1.15 per mile driven
TB MC Qu. 4-96 Welrlck, Inc., manufactures and sells ... Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Overhead Cost $ 139,900 65,970 1,031,820 $1,237,690 Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS Product T8 Product P4 5,400 1,000 Total 8,100 1,600 2,700 orders 600 MHs 3,100 4,000 7,100 The total overhead applied to Product P4 under activity-based costing is closest to: (Round your Intermedlete calculations to 2 decimal places.) Multiple Cholce $965,850 $581,320 S652.687 Mc Graw Hill 10:55 AM 66°F Mostly cloudy 21 10/20/2021 P Type here to search DELL PgUp PgDn Home F11 F12 PrtScr Insert Delete F8 F9 F10 F2 F5 F6 F7 F3 F4 Num