MA1 - #30Flashlight, Inc. makes two types of flashlights and is implementing an activity-based costing system.Previously, all overhead had been applied on the basis of machine hours. The company produces 11,250units of the Deluxe model and 21,142 units of the Compact model. Additional data is as follows:Use of Driver by Use of Cost DriverDeluxeby CompactCost Driver and EstimatedCost PoolLevel of ActivityEstimatedOverhead CostEquipmentSetup100 setups$20,00065 setups35 setupsMaterials140 orders$21,00095 orders45 ordersOrderingQualityControl200 inspections$22,000150 inspections 50 inspectionsMachining9,000 machine hours$18,0005,000 machinehours4,000 machine hoursTotal Overhead Cost $81,000What is the total overhead cost applied to Deluxe using activity-based costing?○ $53,750○ $57,564$23,945○ $76,271

Activity based costing is the method through which the company allocates its overhead costs by…

MA1 - #30 Flashlight, Inc. makes two types of flashlights and is implementing an activity-based costing system. Previously, all overhead had been applied on the basis of machine hours. The company produces 11,250 units of the Deluxe model and 21,142 units of the Compact model. Additional data is as follows: Use of Driver by Use of Cost Driver Deluxe Cost Driver and Estimated Cost Pool Level of Activity Estimated Overhead Cost by Compact Equipment 100 setups $20,000 65 setups 35 setups Setup Materials 140 orders $21,000 95 orders 45 orders Ordering Quality Control 200 inspections $22,000 150 inspections 50 inspections Machining 9,000 machine hours $18,000 5,000 machine 4,000 machine hours hours Total Overhead Cost $81,000 What is the total overhead cost applied to Deluxe using activity-based costing? $53,750 $57,564 $23,945 $76,271

MA1 - #30 Flashlight, Inc. makes two types of flashlights and is implementing an activity-based costing system. Previously, all overhead had been applied on the basis of machine hours. The company produces 11,250 units of the Deluxe model and 21,142 units of the Compact model. Additional data is as follows: Use of Driver by Use of Cost Driver Deluxe Cost Driver and Estimated Cost Pool Level of Activity Estimated Overhead Cost by Compact Equipment 100 setups $20,000 65 setups 35 setups Setup Materials 140 orders $21,000 95 orders 45 orders Ordering Quality Control 200 inspections $22,000 150 inspections 50 inspections Machining 9,000 machine hours $18,000 5,000 machine 4,000 machine hours hours Total Overhead Cost $81,000 What is the total overhead cost applied to Deluxe using activity-based costing? $53,750 $57,564 $23,945 $76,271

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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pok sk int ences = aw 11 Rand Company computed the following activity rates using activity-based costing. Activity Setup Materials handling Inspection $ 60 per materials requisition $3 per unit inspected The company's deluxe model used the following activities to produce 1,000 units. Activity Setup Materials handling Inspection Actual Activity Usage 2 setups 24 materials requisitions 1,000 units inspected Compute the overhead cost per unit for the deluxe model using activity-based costing. Activity Setup Materials handling Inspection Total allocated cost Units produced Overhead cost per unit # 2 3 * $ 10 $ 1,040 per setup 4 Activity Rate % 5 Activity Usage 6 Q Search 17 C- & DA 441
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Please only answer the total amount of fixed manufacturing overhead.
‏COVID 19 Co uses an activity based costing system with three activity cost pools . The company has provided the following data concerning its costs and its activity based costing system : Costs : $ 273.000 Wages and salaries Depreciation 207.000 199,000 Utilities Total $ 679.000 Distribution of resource consumption Total 100 % Activity Cost Pools Assembly Setting Other Up Wages and salaries 60 20 % 20 % Depreciation 359 20 % 4596 Utilities 20 % 60 % 2096 How much cost , in total , would be allocated in the first stage allocation to the Assembly activity cost pool ? 100 % 100
David Manufacturing, which uses the high-low method for estimating cost function, makes a product called Kwan. The company incurs three different manufacturing cost types (A, B, and C) and has a relevant range of operation between 4,000 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $7 $12.60 $4 $23.60 7,500 units $7 $8.40 $3 $18.40 Required: a) Classify each of the costs (A, B, and C) as either fixed or variable or semi-variable b) Write down a linear cost function that expresses the behavior of Shum's total manufacturing cost as a function of # of units produced. c) If Shum produces 10,000 units, what would be the total cost of manufacturing? d) If all fixed costs (or fixed components of costs) decrease by 10% and all variable costs (or variable components of costs) decrease by 10%, what would be the total cost of manufacturing for an activity level of production of 8,000…
12 Lavender Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,500 units and of Product B is 3,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Expected Activity Activity Cost Pool Estimated Cost Product A Product B Total Activity 1 $10,000 420 350 770 Activity 2 12,000 120 420 540 Activity 3 50,000 490 1,162 1,652 The cost per unit of Product B under activity-based costing is closest to which of the following? Select one: a. $16.35 b. $35.38 c. $24.10 d. $31.90
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Problem 3 ZXC company are using a single rate for its overhead application yet they want to decide to adopt the activity based costing in their manufacturing process. There are three activities done in the as stated below. The company usually based on 30,000 direct labor hours for its overhead and 50 pesos of materials per unit produced. The cost are as follows Activity centers Materials Handling Machine Setup Product Inspection Total Product ZZZ YYY QTY Produced 3,000 7,500 Cost 477,000 189,000 288,000 954,000 DLH Hours 8,500 12,000 DL Cost 144,000 279,000 Activity Drivers 60,000 times handled 9,000 setups 18,000 units Materials Handled 17,500 22,000 Required: 1. Compute the unit cost for each product using a single rate base on DL hours 2. Compute the unit cost for each product using activity-based costing Setups 2,250 3,600
Question: Pat Company uses activity-based costing. The company has two products: A and B. The annual production and sales for Product A is 1,800 units and for Product B it's 1,050 units. There are three activity cost pools, with estimated costs and expected activity as follows: Activities Estimated Expected Activity Overhead Cost Product A Product Total B Activity 1 $46,775 1,300 1,200 2,500 Activity 2 $68,277 2,300 1,000 3,300 Activity 3 $82,502 The overhead cost per unit of Product A under activity-based costing is closest to: 720 700 1,420 A. $139.12 B. $68.28 C. $32.88 D. $63.19
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