Julio produces two types of calculators, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Jullo has identified two activity pools: materials handling and setup. The collected data follow: Number of machine hours Number of material moves Number of setups Standard Model 25,000 550 80 Deluxe Model 30,000 850 500 Total estimated overhead costs are $303,560, of which $140,000 is assigned to the materials handling pool and $163,560 is assigned to the setup pool. Required: 1. Calculate the overhead assigned to each product using the traditional cost system. 2. Calculate the overhead assigned to each product using ABC. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the overhead assigned to each product using the traditional cost system. Note: Round the overhead rate to 4 decimal places and round your final answer to the nearest whole dollar amount. Standard Model Deluxe Model Overhead Assigned Required 2 >
Julio produces two types of calculators, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Jullo has identified two activity pools: materials handling and setup. The collected data follow: Number of machine hours Number of material moves Number of setups Standard Model 25,000 550 80 Deluxe Model 30,000 850 500 Total estimated overhead costs are $303,560, of which $140,000 is assigned to the materials handling pool and $163,560 is assigned to the setup pool. Required: 1. Calculate the overhead assigned to each product using the traditional cost system. 2. Calculate the overhead assigned to each product using ABC. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the overhead assigned to each product using the traditional cost system. Note: Round the overhead rate to 4 decimal places and round your final answer to the nearest whole dollar amount. Standard Model Deluxe Model Overhead Assigned Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Julio produces two types of calculators, standard and deluxe. The company is currently using a traditional costing system with machine
hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Jullo has identified
two activity pools: materials handling and setup. The collected data follow:
Number of machine hours
Number of material moves
Number of setups
Standard
Model
25,000
550
80
Deluxe Model
30,000
850
500
Total estimated overhead costs are $303,560, of which $140,000 is assigned to the materials handling pool and $163,560 is assigned
to the setup pool.
Required:
1. Calculate the overhead assigned to each product using the traditional cost system.
2. Calculate the overhead assigned to each product using ABC.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Calculate the overhead assigned to each product using the traditional cost system.
Note: Round the overhead rate to 4 decimal places and round your final answer to the nearest whole dollar amount.
Standard Model
Deluxe Model
Overhead Assigned
Required 2 >
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 2 steps
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