Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Rate Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders $10 per direct labor-hour $3 per machine-hour $45 per setup $160 per order Shipments $115 per shipment Product sustaining $825 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost Total Expected Activity K425 M67 2,000 40 30 K425 200 1,075 3,400 9 9 18 2 M67 SOONNNN 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 2 2

Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Rate Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders $10 per direct labor-hour $3 per machine-hour $45 per setup $160 per order Shipments $115 per shipment Product sustaining $825 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost Total Expected Activity K425 M67 2,000 40 30 K425 200 1,075 3,400 9 9 18 2 M67 SOONNNN 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 2 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units Products A $14.80 C B $10.70 $11.50 27.90 3.20 19.90 4.80 27.00 35.30 $ 66.50 $ 77.10 $75.80 34.10 3.10 27.10 Products A B 4.30 5.80 $76.60 $94.00 $2.70 $ 1.70 4,500 4,500 D $ 11.10 40.90 3.70 37.70 $93.40 C D 4.80 3.90 $87.90 $ 104.70 $ 3.80 $ 2.10 3,500 2,500 The grinding machines are potentially the constraint in the production facility. A total of 71,400 minutes are available per month on these machines. Direct labor is a variable cost in this company. Up to how much should the company be willing to pay for one additional minute of grinding machine time if the company has made the best use of the…
Larner Corporation is a diversified manufacturer of industrial goods. Ine company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates $ 9.00 per direct labor-hour $ 4.00 per machine-hour $70.00 per setup $ 200.00 per order $ 130.00 per shipment $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year 378 $ 4.50 B52 $ 46.00 $ 3.25 4,000 $ 4.00 500 Total Expected Activity 378 B52 Direct labor-hours 1,500 50 Machine-hours 2,400 50 Machine setups 3 2 Production orders 4 2 Shipments 9 2 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Prev 3 of 6 Novt C
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups $ 40 per setup Production orders $ 150 per order Shipments $ 120 per shipment Product sustaining $ 800 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $ Activity Rate $10 per direct labor-hour $ 3 per machine-hour K425 0 Total Expected Activity K425 M67 2,000 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? $ 200 975 2,600 7 7 14 2 M67 50 40 0 2 2 2 2
ABC Company uses activity-based costing to allocate MOH. The company has 2 products d and e. The annual production of sales of Product d are 1,000 units and product e is 3000 units. There are three activity cost pool of MOH with an estimated total cost of $69,000. What is the MOH cost per unit for product d under activity-based costing? Expected Activity (Allocation base) Total Activity Cost pool (for MOH) Activity 1 Activity 2 Activity 3 Estimated Cost of MOH Product d Product e $9000 500 500 1000 12000 200 200 500 48,000 500 1100 1600
Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 231,000 11,000 MHs Machine setups Number of setups $ 180,000 300 setups Production design Number of products $ 94,000 2 products General factory Direct labor-hours $ 260,000 10,000 DLHs Activity Measure Product Y Product Z Machining 9,000 2,000 Number of setups 60 240 Number of products 1 1 Direct labor-hours 9,000 1,000 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and…
Greenwood Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 235,200 12,000 MHs Machine setups Number of setups $ 73,600 160 setups Production design Number of products $ 80,000 2 products General factory Direct labor-hours $ 295,200 12,000 DLHs Activity Measure Product Y Product Z Machining 7,600 4,400 Number of setups 40 120 Number of products 1 1 Direct labor-hours 7,600 4,400 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product…
Greenwood Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost ExpectedActivity Machining Machine-hours $ 200,000 10,000 MHs Machine setups Number of setups $ 100,000 200 setups Production design Number of products $ 84,000 2 products General factory Direct labor-hours $ 300,000 12,000 DLHs Activity Measure Product Y Product Z Machining 8,000 2,000 Number of setups 40 160 Number of products 1 1 Direct labor-hours 9,000 3,000 11. Using the plantwide overhead rate, what percentage of the…
Koontz Company manufactures two models of industrial components-a Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz's controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Basic Advanced Total Number of units produced and sold 20,000 10,000 30,000 $ 5,000,000 3,650,000 1,350,000 1,200,000 $3,000,000 $2,000,000 1,350,000 650,000 480,000 Sales Cost of goods sold Gross margin Selling and administrative expenses 2,300,000 700,000 720,000 (20,000) Net operating income (loss) $4 $4 170,000 150,000 Direct laborers are paid $20 per hour. Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model. Koontz is considering a change from plantwide overhead allocation to a departmental…
Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 227,700 11,000 MHs Machine setups Number of setups $ 153,900 270 setups Production design Number of products $ 91,000 2 products General factory Direct labor-hours $ 257,000 10,000 DLHs Activity Measure Product Y Product Z Machining 8,700 2,300 Number of setups 60 210 Number of products 1 1 Direct labor-hours 8,700 1,300 7. Which of the four activities is a batch-level activity? multiple choice Machining activity General…
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments $115 per shipment Product sustaining $875 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost Activity Rates $6 per direct labor-hour $3 per machine-hour $45 per setup $ 160 per order K425 Total Expected Activity K425 M67 2,000 M67 200 1,150 3,200 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 7 7 14 2 50 40 2 2 2 2
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Estimated Overhead Cost Expected Activity Labor-related $ 22,000 1,000 direct labor-hours Machine-related $ 10,000 8,000 machine-hours Machine setups $ 36,000 800 setups Production orders $ 29,400 600 orders Product testing $ 27,900 900 tests Packaging $ 68,400 3,600 packages General factory $ 56,800 1,000 direct labor-hours Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Labor-related per DLH Machine-related per MH Machine setups per setup Production orders per order Product testing per test Packaging per package General factory per DLH
Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 227,700 11,000 MHs Machine setups Number of setups $ 153,900 270 setups Production design Number of products $ 91,000 2 products General factory Direct labor-hours $ 257,000 10,000 DLHs Activity Measure Product Y Product Z Machining 8,700 2,300 Number of setups 60 210 Number of products 1 1 Direct labor-hours 8,700 1,300 Required: 1. What is the company’s plantwide overhead rate? (Round your answer to 2 decimal places.) PLEASE ROUND TO…