Number ofMachineNumber ofNumber ofNumber ofCustomerUnitsHoursSetupsMovesTest RunsOrdersComputer paper40080230310501,000Newsprint5003070140151,250Specialty paper200150300550105500Total1,1002606001,0001702,750Each product requires 0.4 machine hour per unit.Required:1. Determine the activity rate for each activity.Activity RateProduction200 /mhSetup%$4450 /setupMoving35 /moveShipping$105 /cust. ord.Product Engineering$600 /test run2. Determine the total and per-unit activity cost for all three products. Round "Activity cost per unit" answers to two decimal places.Computer PaperNewsprintSpecialty PaperTotal activity costActivity cost per unit Activity-Based CostingSoutheastern Paper Company manufactures three products (computer paper, newsprint, and specialty paper) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows:ActivityActivity CostsProduction$220,000Setup117,000Moving21,000Shipping105,000Product engineering102,000Total$565,000The activity bases identified for each activity are as follows:ActivityActivity BaseProductionMachine hoursSetupNumber of setupsMovingNumber of movesShippingNumber of customer ordersProduct engineeringNumber of test runsThe activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows:

Required 1: Activity rate for each activity: Activity rate Production ($220,000/1,100) $200…

Answered: Machine Hours Computer paper 400…

Business

Accounting

Machine Hours Computer paper 400 Newsprint 500 Specialty paper 200

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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! Required information The Ferre Publishing Company provided the following data for its three service departments and two operating departments. Service Departments Administration Costs $ 140,000 Number of employees Square feet of space occupied Hours of press time 60 15,000 Janitorial $ 105,000 35 10,000 Maintenance $ 48,000 140 20,000 Operating Departments Binding Printing $ 275,000 $ 430,000 315 210 40,000 100,000 30,000 60,000 Total $ 998,000 760 185,000 90,000 Administration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of press time. Required: Assuming the company uses the direct method rather than the step-down method, how much cost would be assigned to each operating department? Note: Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Departmental costs before allocations Allocations:…
es Berkeley Bank reports the following information about resources in two functions. Cost Driver Rate Resources used Process transactions. Process accounts Resources supplied Process transactions Process accounts $ Process transactions Process accounts $ 0.01 per transaction 250 per account $630, 000 $306, 000 Required: Compute unused resource capacity at Berkeley Bank. Unused Resource Capacity Cost Driver Volume 40,000,000 transactions 950 accounts
Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Direct labor hours: Scientific calculator Business calculator Total Machine hours: Scientific calculator Business calculator Total Overhead costs: Setup costs Inspection costs Power Maintenance Total Required: Plantwide rate Overhead cost per unit: Scientific Product-Related Data Business Business Scientific 74,000 $239,000 99,800 49,500 100 2,000 2,250 Department Data Department 1 Department 2 77,300 139,720 217,020 23,000 381,800 404,800 $232,500 170,000 260,000 208,000 $870,500 1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor hours per direct labor hour 740,000 $2,390,000 998,000 495,000 150 3,000 9,000 per unit per unit 22,500 858,280 880,780 26,500 113,200 139,700 $232,500 170,000 133,000 219,500 $755,000
A B C D E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Chapter 7: Applying Excel Data Manufacturing overhead $500,000 Selling and administrative overhead $300,000 Assembling Units Processing Orders Supporting Customers Other Manufacturing overhead 50% 35% 5% 10% Selling and administrative overhead 10% 25% 45% 20% Total activity 1,000 250 100 units orders customers OfficeMart orders: Customers 1 customer Orders 6 orders Number of filing cabinets ordered in total 80 units Selling price $595 Direct materials $180 Direct labor $50 a) Based on new number of orders in Requirement 2, what is the customer margin under activity-based costing when the data are corrected? (b) Based on new number of orders in Requirement 2, what is the product margin under the traditional costing system when the data are corrected?…
Deb is setting up a business printing newspapers and magazines. The following standard cost information is available: Newspapers Magazines Selling price 3.00 4.00 Direct materials: - Paper 0.4 0.5 - Ink 0.2 0.3 Direct Labour 0.6 0.8 Variable overhead 0.3 0.45 Fixed overhead 0.9 0.8 Profit per unit 0.6 1.15 Budgeted production 1,000 units per week 3,000 units per month Deb is going to start by only printing newspapers. 1 How many units would need to be sold to breakeven? units
5 Cc Ce X Cla v2.cengagenow.com O search Ce Print Item Date Hc Nov. Fa Item So Mohamed In 1 Bal., 8,400 units, 80% completed 30 Direct materials, 76,000 units 30 Direct labor 30 Factory overhead 30 Goods finished, ? units 30 Bal., 6,700 units, 70% completed bry My ofirvaker Winke/vekurs med extent Win Debit The following information concerns production in the Forging Department for November. All direct materials are placed into the process at of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $110,040 of direct m ACCOUNT Work in Process-Forging Department 972,800 95,340 131,670 W Ap Check My Work 0 more Check My Work uses remaining. Credit < a. Determine the number of units transferred to the next department. 77,700 ✓ units 1.21 ? c. Determine the cost of units started and completed in November. 72,426.90 X go 12.80 V C Debit du Ac Ac AC ACCOUNT NO. Balance 129,528 1,102,328 1,197,668 1,329,338 2 a ? b. Determine the…
mabled: Exam 5 Saved Assume a company manufactures many products, one of which normally sells for $48 per unit. The company's accounting syster cost for this product: Direct materials Direct labor Manufacturing overhead Total cost Per Unit $ 18 12 10 $ 40 The company estimates that $3 of its manufacturing overhead varies with respect to the number of units produced. The remainder unaffected by the volume of units produced within the relevant range. A customer has approached the company with an offer to buy 300 units of a customized version of the product mentioned above f this order using existing manufacturing capacity. To accommodate the customer's desired product design, the company would incu per unit of $3. It would also have to buy a special tool for $580 that has no other use or resale value after the special order is compl this order will not have any effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the speci Multiple Choice $(300)…
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