ICD Group Manufacturing has five activity cost pools and two products (a budget tapevacuum and a deluxe tape vacuum). Information is presented below:Activity Cost PoolDeluxeCost DriverEst. OverheadCost Drivers by ProductBudgetOrdering and ReceivingOrdersMachine SetupSetups$ 120,000297,000600400500400MachiningMachine hours 1,000,000150,000100,000AssemblyPartsInspections1,400,000300,0001,200,000800,000550450InspectionInstructionsCompute the overhead cost per unit for each product. Production is 700,000 units ofBudget and 200,000 units of Deluxe. Round your answer to the nearest cent.

Step 1: Introduction to factory overheadsFactory overheads are defined as indirect costs that are…

Answered: ICD Group Manufacturing has five…

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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Maxx Inc. has provided the following data from its activity-based costing system:Activity Cost Pools Total Cost Total ActivityDesigning products $383,900 6,580 product design hoursSetting up batches $52,678 7366 batch set-upsAssembling products $25,122 4,018 assembly hoursThe activity rate for the “designing products” activity cost pool is:
Teach Gear Inc. produces 3 types of office equipment; Bronze, silver and Gold and uses an activity-based product costing system. They have identified 5 activities. Each activity, it costs and related activity driver is summarized below: Activity Material handling Material insertion Activity Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Cost Tasks: Automated Machinery finishing Packaging The following data are provided for each product line: Activity driver Number of parts Number of parts 350,000 Machine hours 150,000 Labor hours 90,000 Orders shipped Bronze P120,000 240,000 6,000 1,200 4. 1 2 Silver 4,000 800 5 2 3 Gold 2,000 400 8 3 لنا Make a narrative recommend the unit cost per unit of Bronze, Silver and Gold using the ABC system. In support of your recommendation show your solution presenting: 1. The computation of the activity cost rates 2. the computation of the estimated volume (TOTAL PARTS, TOTAL MACHINE HOURS,…
Teach Gear Inc. produces 3 types of office equipment; Bronze, silver and Gold and uses an activity-based product costing system. They have identified 5 activities. Each activity, it costs and related activity driver is summarized below: Activity Cost Activity driver Material handling P120,000 Number of parts Material insertion 240,000 Number of parts Automated 350,000 Machine hours Machinery finishing 150,000 Labor hours Packaging 90,000 Orders shipped The following data are provided for each product line: Activity Bronze Silver Gold Units to be produced 6,000 4,000 2,000 Orders to be shipped 1,200 800 400 Number of parts per unit 4. 5 8 Machine hours per unit 1 2 3 Labor hours per unit 2 3 3 b. the computation of the estimated volume (TOTAL PARTS, TOTAL MACHINE HOURS, TOTAL LABOR HOURS AND ORDERS TO BE SHIPPED)
Dhepa
Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Department Fabricating Finishing Repair Quality Control Proportion of Services Us by Quality Direct Costs Repair $ 130,600 90, 200 38,400 71, 600 0 0.8 Control Fabricating Finishing 0.2 0 Required: Use the step method to allocate the service costs, using the following: 0.5 0.1 a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). 0.3 0.1
Data concerning three of Kilmon Corporation’s activity cost pools appear below: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembling products $ 65,540 4,520 assembly hours Designing products $ 578,112 3,011 product design hours Setting up batches $ 41,820 820 batch set-ups Required: Compute the activity rates for each of the three cost pools. (Round your answers to 2 decimal places.) Activities Activity rate Assembly products Designing products Setting up batches
Merlin Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $200,000 10,000 hours Account billing lines $140,000 4,000,000 lines Account verification accounts $75,000 40,000 accounts Correspondence letters $25,000 4,000 letters Total costs $440,000 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,000 hours 4,000 hours Account billing lines 400,000 lines 200,000 lines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1,000 letters 1,600 letters Required: a. How much of the correspondence costs will be assigned to Department B? b. How much of the total costs will be assigned to Department A?
Spacely, Corp. makes sprockets in two models: regular and professional, and wants to refine its costing system by allocating overhead using departmental rates. The estimated $843,100 of manufacturing overhead has been divided into two cost pools: Assembly Department and Packaging Department.The following data has been compiled: Spacely, Corp. Assembly Department Packaging Department Total Overhead costs $550,000 $293,100 $843,100 Machine Hours: Regular Model 153,000 35,100 188,100 Professional Model 352,400 12,600 365,000 Direct Labor Hours: Regular Model 40,300 80,600 120,900 Professional Model 322,700 413,400 736,100 (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the predetermined overhead allocation rates using machine hours as the allocation base for the Assembly Department and direct labor hours for the Packaging Department.
Carla Vista Industries has three activity cost pools and two products. It expects to produce 2,700 units of Product SZ09 and 1,400 of Product NZ16. Having identified its activity cost pools and the cost drivers for each pool, Carla Vista accumulated the following data relative to those activity cost pools and cost drivers. question: Assign the overhead cost to the two products: SZ09$? and NZ16$?
Genious Corporation implemented activity-based costing several years ago and uses it for its external financial reports. The company has four activity cost pools, which are listed below. Activity Cost Pool Activity Measure Estimated Overhead Cost Machine related Machine Hours $90,000 Purchase orders Number of orders $126,000 Machine setups Number of Setups $200,000 General factory Number of labor hrs $60,000 Expected Activity 5,000 Mhs 2,800 orders 10,000 setups 4,000 Dlhs Manufacturing overhead cost was applied to production. Actual activity during the year was as follows: Activity Cost Pool Machine related Purchase orders Machine setups General factory Actual Activity 10,500 Mhs 800 orders 1,500 setups 8,000 Dlhs It is expected that the company will produce 62,500 units. Compute the activity rate for each activity. Compute the per unit cost for overhead
Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost $ 888,300 Assembly Processing orders $ 60,560 Inspection $ 101,572 Data concerning the company's product Q79Y appear below: Annual unit production and sales Annual machine-hours Annual number of orders Annual inspection hours Direct materials cost Direct labor cost Multiple Choice Total Activity 54,000 machine-hours 1,600 orders: 1,340 inspection-hours O $144.43 per unit 600 1,040 70 45 According to the activity-based costing system, the average cost of product Q79Y is closest to: (Round your intermediate calculations to 2 decimal places.) $49.00 per unit $ 41.13 per unit
Collin Company manufactures small appliances and uses an activity-based costing system. Information from its system for the year for all products follows: Activity cost pool Total cost Total activity. Assembly Inspection Packaging $460,000 $298,500 $19,700 A. $139,977.76 B. $115,566.24 C. $23,187.50 D. $26.50 20,000 8,500 1,800 machine - hours inspection - hours order The company makes 875 of its stand mixers a year, which requires a total of 27 machine hours, 15 inspection hours, and 9 orders. The stand mixer requires $16.00 in direct materials per unit and $10.50 in direct labor per unit. The stand mixer sells for $160 per unit. What is the profit margin in total for the stand mixer? (Do not round intermediary calculations and round your final answer to the nearest cent.)

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