Noland Company manufactures two models of its banjo, the Basic and the Luxury. The Basic model requires 10,000 direct labor hours and the Luxury requires 30, 000 direct labor hours. The company produces 3, 400 units of the Basic model and 600 units of the Luxury model each year. The company inspects one Basic for every 100 produced, and inspects one Luxury for every 10 produced. The company expects to incur $112, 800 of total inspecting costs this year. How much of the inspecting costs should be allocated to the Basic model using ABC costing? Group of answer choices $28, 200 $40, 800 $56, 400 $95, 880

Noland Company manufactures two models of its banjo, the Basic and the Luxury. The Basic model requires 10,000 direct labor hours and the Luxury requires 30, 000 direct labor hours. The company produces 3, 400 units of the Basic model and 600 units of the Luxury model each year. The company inspects one Basic for every 100 produced, and inspects one Luxury for every 10 produced. The company expects to incur $112, 800 of total inspecting costs this year. How much of the inspecting costs should be allocated to the Basic model using ABC costing? Group of answer choices $28, 200 $40, 800 $56, 400 $95, 880

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 25P: Taylor Company produces two industrial cleansers that use the same liquid chemical input: Pocolimpio...

See similar textbooks

Related questions

Q: JE for A?

A: Here asked for the journal entry related with the construction of library and its total proceedings…

Q: the customer per small p the customer per large p= s Stork Enterprises have f gnize this tax…

A: A. Total tax charged to the customer per small package = 6% x $45 = $2.70Overall charge per small…

Q: Describe the functions and powers of ASIC

A: Australian securities and investment commission is a commission made in 1998 of Australian…

Q: A figured out

A: Pre determined Overhead rate Calculation Overhead cost $ 28,80,000 Divided By Direct…

Q: Ihshl

A: The Fundamental accounting equation, likewise called the accounting report condition, speaks to the…

Q: What the agi

A: AGI means Adjusted Gross Income. It is the total income on which income tax payable would be…

Q: Need help for part C an D

A: In case of realisation of assets, outsider liabilities have first right on such realisation , such…

Q: Define Hedging.

A: Hedging is the transfer of risk from a risky financial instrument to another instrument by buying or…

Q: 1. Why is there a cost associated with retained earnings? 2. What is Coleman's estimated cost of…

A: Given: The firm tax rate is 25% The current price of coleman’s is 12% The current price of firm is…

Q: Define collection policy

A: Introduction: A mutual responsibility between the operating departments, accounts receivables is to…

Q: I, J, K

A: i. Payment of interest would include an outflow of cash and also an increase in interest expense.

Q: what about quesitons E and F?

A: Work in progress (WIP) also called work in process, is inventory that has begun the manufacturing…

Q: Trying to find answer a through e

A: Since the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the…

Q: how do you record line i

A: An accounting equation is a formula of accounting where it is proved that the total value of assets…

Q: what is a P&L

A: P & L : P & L is defined as the Profit and loss statement. In financial accounting, the…

Question

Noland Company manufactures two models of its banjo, the Basic and the Luxury. The Basic
model requires 10,000 direct labor hours and the Luxury requires 30, 000 direct labor hours.
The company produces 3,400 units of the Basic model and 600 units of the Luxury model
each year. The company inspects one Basic for every 100 produced, and inspects one Luxury
for every 10 produced. The company expects to incur $112, 800 of total inspecting costs this
year. How much of the inspecting costs should be allocated to the Basic model using ABC
costing? Group of answer choices $28, 200 $40, 800 $56, 400 $95, 880

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introducing Activity Based Costing

VIEW

Step 2: Calculate the Number of Inspection for Each Model

VIEW

Step 3: Calculate the Activity Rates & Inspection Cost Allocated to Basic Model

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Noland Company manufactures two models of its banjo, the Basic and the Luxury. The Basic model requires 10000 direct labor hours. and the Luxury requires 30000 direct labor hours. The company produces 3400 units of the Basic model and 600 units of the Luxury model each year. The company inspects one Basic for every 100 produced, and inspects one Luxury for every 10 produced. The company expects to incur $658000 of total inspecting costs this year. How much of the inspecting costs should be allocated to the Basic model using ABC costing? O $329000 O $238000 O $559300 O $164500
Gadubhai
Leeds Corp. produces product BR500. Shamokin expects to sell 10,000 units of BR500 and to have an ending finished inventory of 2,000 units. Currently, it has a beginning finished inventory of 800 units. Each unit of BR500 requires two labor operations, one labor hour of assembling and two labor hours of polishing. The direct labor rate for assembling is $10 per assembling hour and the direct labor rate for polishing is $12.50 per polishing hour. The expected number of hours of direct labor for BR500 for this period are O 8,800 hours of assembling; 17,600 hours of polishing O 11,200 hours of assembling: 22,400 hours of polishing 17,600 hours of assembling: 8,800 hours of polishing O 22,400 hours of assembling: 11,200 hours of polishing
RK Co. sells snowboards. Each snowboard requires direct materials for $140, direct labor for $55, and variable overhead of $64. The company expects fixed overhead costs of $673,000 and fixed selling and administrative costs of $160,000 for the next year. It expects to produce and sell 11,900 snowboards in the next year. What will be the selling price per unit if RK uses a mark-up of 17% of the total cost?
Garcia Co. sells snowboards. Each snowboard requires direct materials for $119, direct labor for $49, and variable overhead of $64. The company expects fixed overhead costs of $673,000 and fixed selling and administrative costs of $160,000 for the next year. It expects to produce and sell 11,900 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 15% of the total cost?
Ans
Cogswell Cogs, Inc. estimates its overhead for the upcoming year to be $1,693,500 and will use machine hours as its base to apply overhead and estimates total machine usage will be 112,000 hours and estimates direct labor hours will be 43,500 hours. Cogswell makes three different models of its product – Basic, Premium and Deluxe. The company anticipates making 10,000 units of Basic, 5,000 units of Premium and 1,000 units of Deluxe. The following information relates to Direct Material and Direct Labor for each unit for each model – Basic Direct Material Direct Labor 5 pounds @ $4/pound 2.5 hours @ $16/hour Premium 8 pounds @ $4.20/pound 3 hours @ $16/hour Deluxe 10 pounds @ $440/pd 3.5 hours @ $18/hour Overhead 6 machine hours 8 machine hours 12 machine hours Mr. Cogswell, the President and CEO of Cogswell Cogs, Inc. has been reading about Activity-based Costing (ABC) and thinks that perhaps the company should adopt it. He asked you to gather up information regarding the cost drivers in…
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0 to 1,800 units, and monthly production costs for the production of 1,400 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Direct materials Direct labor Utilities ($150 fixed) Supervisor's salary Maintenance ($330 fixed) Depreciation Suppose it sells each birdbath for $22. Required: 1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. 2. Complete the contribution margin Income statement assuming that Morning Dove produces and sells 1,600 units. 4 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. Note: Round your intermediate calculations and final answer to 2 decimal places.…
Concord Corporation is planning to sell 1200 boxes of ceramic tile, with production estimated at 1170 boxes during May. Each box of tile requires 40 pounds of clay mix and a 0.25 hour of direct labor. Clay mix costs $0.30 per pound and employees of the company are paid $10 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Concord has 3800 pounds of clay mix in beginning inventory and wants to have 4500 pounds in ending inventory. What is the total amount to be budgeted for direct labor for the month? O $3000 O $11700 O $46800 O $2925
Har
Garcia Co. sells snowboards. Each snowboard requires direct materials of $105, direct labor of $35, and variable overhead of $50. The company expects fixed overhead costs of $645,000 and fixed selling and administrative costs of $111,000 for the next year. It expects to produce and sell 10,500 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 15% of total cost? (Round your answer to 2 decimal places.) Selling Price _____________ Per Unit
Bramble Production is planning to sell 650 boxes of ceramic tile, with production estimated at 830 boxes during May. Each box of tile requires 25 kilograms of clay mix and a half-hour of direct labour. Clay mix costs $0.60 per kilogram and employees of the company are paid $22 per hour. Manufacturing overhead is applied at a rate of 130% of direct labour costs. Bramble has 2900 kilograms of clay mix in beginning inventory and wants to have 4000 kilograms in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month? $11869