lata Company produces two products: a mostly handcrafted soft leather briefcase sold under the label Maletin Elegant and a leather briefcase produced largely through automation and sold under the label Maletin Fina. The two products use two overhead activities, with the following costs: Setting up equipment $ 3,000 Machining 19,000 The controller has collected the expected annual prime costs for each briefcase, the machine hours, the setup hours, and the expected production. Elegant Fina Direct labor $9,000 $3,000 Direct materials $3,000 $3,000 Units 3,000 3,000 Machine hours 500 4,500 Setup hours 100 100 Required Calculate the consumption ratios for each activity. Round your answers to one decimal place. Elegant Fina Machining fill in the blank 2 fill in the blank 3 Setups fill in the blank 4 fill in the blank 5 a. Calculate the overhead cost per unit for each briefcase by using a plantwide rate based on direct labor costs. Round to the nearest cent. (Note: Do not round intermediate calculations.) Elegant $fill in the blank 6 per briefcase Fina $fill in the blank 7 per briefcase b. Calculate the overhead cost per unit for each briefcase by using overhead rates based on machine hours and setup hours. Round your answers to the nearest cent. Elegant $fill in the blank 9 per unit Fina $fill in the blank 10 per unit

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 4EA: Use the information provided to create a standard cost card for production of one glove box switch....

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Plata Company produces two products: a mostly handcrafted soft leather briefcase sold under the label Maletin Elegant and a leather briefcase produced largely through automation and sold under the label Maletin Fina. The two products use two overhead activities, with the following costs:

Setting up equipment	$ 3,000
Machining	19,000

The controller has collected the expected annual prime costs for each briefcase, the machine hours, the setup hours, and the expected production.

	Elegant	Fina
Direct labor	$9,000	$3,000
Direct materials	$3,000	$3,000
Units	3,000	3,000
Machine hours	500	4,500
Setup hours	100	100

Required

Calculate the consumption ratios for each activity. Round your answers to one decimal place.

	Elegant	Fina
Machining	fill in the blank 2	fill in the blank 3
Setups	fill in the blank 4	fill in the blank 5

a. Calculate the overhead cost per unit for each briefcase by using a plantwide rate based on direct labor costs. Round to the nearest cent. (Note: Do not round intermediate calculations.)

Elegant	$fill in the blank 6 per briefcase
Fina	$fill in the blank 7 per briefcase

b. Calculate the overhead cost per unit for each briefcase by using overhead rates based on machine hours and setup hours. Round your answers to the nearest cent.

Elegant	$fill in the blank 9 per unit
Fina	$fill in the blank 10 per unit

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