IronBallon Co.makes two beverages: ZIPA and Zager. The following data is summarized: Cost ZIPA Zager Direct materials cost per unit $490 $2,010 Direct labor cost per unit $560 $120 Indirect manufacturing cost per unit ? ? Indirect manufacturing cost information includes the following: Activity Predetermined Overhead Allocation Rate ZIPA Zager Setup $1,210.00 45 Per setup 85 Per setup Machine maintenance $17.00 1,210 Per MHr 3,740 Per MHr IronBallon Co. plans to produce 290 units of each product. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the ABC indirect manufacturing cost per unit for each product. ZIPA Predetermined Overhead Allocation Rate X Actual Quantity of the Allocation Base Used = Actual Manufacturing Overhead Cost Setup X = Machine Maintenance X = Total Estimated Overhead Costs Number of products Manufacturing overhead cost per product Zager Predetermined Overhead Allocation Rate X Actual Quantity of the Allocation Base Used = Actual Manufacturing Overhead Cost Setup X = Machine Maintenance X = Total Estimated Overhead Costs Number of products Manufacturing overhead cost per product 2. Determine the manufacturing overhead cost per product and the total cost per unit. Cost ZIPA Zager Direct Materials cost per unit Direct Labor cost per unit Manufacturing overhead cost per unit Total product cost per unit
IronBallon Co.makes two beverages: ZIPA and Zager. The following data is summarized: Cost ZIPA Zager Direct materials cost per unit $490 $2,010 Direct labor cost per unit $560 $120 Indirect manufacturing cost per unit ? ? Indirect manufacturing cost information includes the following: Activity Predetermined Overhead Allocation Rate ZIPA Zager Setup $1,210.00 45 Per setup 85 Per setup Machine maintenance $17.00 1,210 Per MHr 3,740 Per MHr IronBallon Co. plans to produce 290 units of each product. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the ABC indirect manufacturing cost per unit for each product. ZIPA Predetermined Overhead Allocation Rate X Actual Quantity of the Allocation Base Used = Actual Manufacturing Overhead Cost Setup X = Machine Maintenance X = Total Estimated Overhead Costs Number of products Manufacturing overhead cost per product Zager Predetermined Overhead Allocation Rate X Actual Quantity of the Allocation Base Used = Actual Manufacturing Overhead Cost Setup X = Machine Maintenance X = Total Estimated Overhead Costs Number of products Manufacturing overhead cost per product 2. Determine the manufacturing overhead cost per product and the total cost per unit. Cost ZIPA Zager Direct Materials cost per unit Direct Labor cost per unit Manufacturing overhead cost per unit Total product cost per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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IronBallon Co.makes two beverages: ZIPA and Zager. The following data is summarized:
| Cost | ZIPA | Zager |
|---|---|---|
| Direct materials cost per unit | $490 | $2,010 |
| Direct labor cost per unit | $560 | $120 |
| Indirect |
? | ? |
Indirect manufacturing cost information includes the following:
| Activity | Predetermined |
ZIPA | Zager |
|---|---|---|---|
| Setup | $1,210.00 | 45 Per setup | 85 Per setup |
| Machine maintenance | $17.00 | 1,210 Per MHr | 3,740 Per MHr |
IronBallon Co. plans to produce 290 units of each product.
(Round your answers to two decimal places when needed and use rounded answers for all future calculations).
1. Compute the ABC indirect manufacturing cost per unit for each product.
| ZIPA | Predetermined Overhead Allocation Rate | X | Actual Quantity of the Allocation Base Used | = | Actual Manufacturing Overhead Cost |
|---|---|---|---|---|---|
| Setup | X | = | |||
| Machine Maintenance | X | = | |||
| Total Estimated Overhead Costs | |||||
| Number of products | |||||
| Manufacturing overhead cost per product |
| Zager | Predetermined Overhead Allocation Rate | X | Actual Quantity of the Allocation Base Used | = | Actual Manufacturing Overhead Cost |
|---|---|---|---|---|---|
| Setup | X | = | |||
| Machine Maintenance | X | = | |||
| Total Estimated Overhead Costs | |||||
| Number of products | |||||
| Manufacturing overhead cost per product |
2. Determine the manufacturing overhead cost per product and the total cost per unit.
| Cost | ZIPA | Zager |
|---|---|---|
| Direct Materials cost per unit | ||
| Direct Labor cost per unit | ||
| Manufacturing overhead cost per unit | ||
| Total product cost per unit |
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