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Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items E( cost) $ 90,000 50,000 Setups cost Ordering Cost Maintenance cost 150,000 30,000 E( actual transactions) Power Cost Driver Number of setups 400 Number of orders 4,000 Machine Hours 25,000 Kilowatt hours 75,000 The following is one of the jobs completed during the year Job 700 Job 701 Direct materials $1200 $600 $400 100 Direct Labor $900 Units completed 250 40 Number of setups|2 Number of orders 10 50 DLH 20 1 Machine hours 40 Kilowatt hours 60 25 Actual overhead $2500 $1250 The company's practical activity is 9000 DHL

Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items E( cost) $ 90,000 50,000 Setups cost Ordering Cost Maintenance cost 150,000 30,000 E( actual transactions) Power Cost Driver Number of setups 400 Number of orders 4,000 Machine Hours 25,000 Kilowatt hours 75,000 The following is one of the jobs completed during the year Job 700 Job 701 Direct materials $1200 $600 $400 100 Direct Labor $900 Units completed 250 40 Number of setups|2 Number of orders 10 50 DLH 20 1 Machine hours 40 Kilowatt hours 60 25 Actual overhead $2500 $1250 The company's practical activity is 9000 DHL

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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REQUIRED Part A 1. Calculate the predetermined rate for Job 700 using FBC based on DHL for each job 2. Calculate total product cost using FBC based on DHL for job 700 3. Calculate the unit cost of the job 4. Is the overhead over-applied or under- applied Part B 1. Calculate the PR for job 701 using machine hours 2. Calculate the total product cost using FBC based on machine hours for job 701 3. Calculate the unit cost 4. Is the overhead under or over-applied?
Transcribed Image Text:REQUIRED Part A 1. Calculate the predetermined rate for Job 700 using FBC based on DHL for each job 2. Calculate total product cost using FBC based on DHL for job 700 3. Calculate the unit cost of the job 4. Is the overhead over-applied or under- applied Part B 1. Calculate the PR for job 701 using machine hours 2. Calculate the total product cost using FBC based on machine hours for job 701 3. Calculate the unit cost 4. Is the overhead under or over-applied?
Class work for ACC 420 FBC Question Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items E ( cost) $ 90,000 50,000 Maintenance cost 150,000 30,000 Setups cost Ordering Cost Power Cost Driver Number of setups 400 E( actual transactions) Number of orders 4,000 Machine Hours Kilowatt hours 25,000 75,000 The following is one of the jobs completed during the year Job 700 Job 701 Direct materials $1200 $600 $400 Direct Labor Units completed 250 DLH Number of setups 2 Number of orders 10 Machine hours Kilowatt hours Actual overhead $2500 $1250 $900 100 40 20 1 4 40 50 60 25 The company's practical activity is 9000 DHL
Transcribed Image Text:Class work for ACC 420 FBC Question Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items E ( cost) $ 90,000 50,000 Maintenance cost 150,000 30,000 Setups cost Ordering Cost Power Cost Driver Number of setups 400 E( actual transactions) Number of orders 4,000 Machine Hours Kilowatt hours 25,000 75,000 The following is one of the jobs completed during the year Job 700 Job 701 Direct materials $1200 $600 $400 Direct Labor Units completed 250 DLH Number of setups 2 Number of orders 10 Machine hours Kilowatt hours Actual overhead $2500 $1250 $900 100 40 20 1 4 40 50 60 25 The company's practical activity is 9000 DHL
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