of the WRC factories. Both models require the same assembling operations. The difference between the models is the c materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease Supervision and control Factory administration Operation cost Materials cost Coaster 750 $ 626 Coaster Traveler 450 $ 1,202 Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assemble the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Total 1,200 Traveler $299,400 382,400 247,400 340, 400 Total

of the WRC factories. Both models require the same assembling operations. The difference between the models is the c materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease Supervision and control Factory administration Operation cost Materials cost Coaster 750 $ 626 Coaster Traveler 450 $ 1,202 Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assemble the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Total 1,200 Traveler $299,400 382,400 247,400 340, 400 Total

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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The following information is provided for Space Antenna Corp., which manufactures two products: Lo-Gain antennas and Hi-Gain antennas for use in remote areas. E (Click the icon to view the information.) Space Antenna plans to produce 50 Lo-Gain antennas and 325 Hi-Gain antennas. Read the requirements. Requirement 1. Compute the indirect manufacturing cost per unit using direct labor hours for the single plantwide predetermined overhead allocation rate. First, compute the predetermined overhead (OH) allocation rate. (Round your answer to the nearest cent.) The predetermined overhead (OH) allocation rate is - X Data Table Activity Cost Allocation Base Setup 51,000 Number of setups 42,000 Number of machine hours Machine maintenance %24 Total indirect manufacturing costs 93,000 Lo-Gain Hi-Gain Total Direct labor hours 1,600 4,400 6,000 Number of setups 20 20 40 Number of machine hours 3,500 1,500 5,000 Print Done
XYZ Co.currently uses traditional costing procedures, applying $800,000 of overhead to products Beta and Zeta on the basis of direct labor hours. The company is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH), production setups (SU), and number of parts components .(PC) as cost drivers. Data on the cost pools and respective driver volumes follow Pool No.1 (Driver: DLH) Pool No. 3 (Driver: PC) Pool No. 2 (Driver: SU) Product 2,250 55 1,200 Zeta 750 45 2,800 Beta $360,000 $280,000 $160,000 Pool Cost :The overhead cost allocated to Beta by using activity-based costing procedures would be $356,000 a O $328,000 .b O .None of the given answers .c O $444,000 .d O $472,000 .e O
Conspicuous Limo uses activity-based costing for its two models of stretch Hummer limousines: Big and Too Big. There are three activity cost pools related to production, with estimated costs and expected activity as follows: Amount of Activity Activity Cost Pool Estimated Cost Activity cost driver Big Too Big Fabrication $181,500 Labor hours 600 500 Painting $650,000 Machine hours 1,600 300 Finishing $2,750,000 Units 470 530 What are the activity rates for fabrication and painting?
The All Ball Company manufactures three products (tennis balls, soccer balls and basket balls). The overhead costs of R180000 have been divided into three cost pools as follows: Ordering: R90000 Labour: R50000 Dispatch: R40000 The activity cost drivers and annual usage have been identified as: Product A Product B Product C No. of labour hours 500 2 000 1 000 No. of machine hours 700 1 000 3 000 No. of orders placed 15 10 25 No. of dispatches 35 15 20 The allocation rate per order using an ABC system is: a. R1800.00 b. R1285.71 c. R6000.00 d. R1000.00 e. R3600.00
Shine Ltd manufactures two products, Exe and Zed. Currently, overheads are apportioned using a traditional absorption costing basis. You are the cost accountant and from the class discussion on activity based costing (ABC), you are considering its implementation in your company for the purposes of charging overheads to production. The following information has been provided: Type of cost Amount Current basis Volume related costs Sh. 600,000 Machine hours Purchasing related cost Sh.420,000 Labour hours Set-up costs Sh. 360,000 Labour hours Extracts from the standard costs show the following: EXE ZED Labour hours per unit 4 2 Machine hours per unit 2 2 Budgeted production next year 20,000 10,000 Number of purchase orders per annum 150 60 Number of machine set-up per annum 70 50 Required: Using ABC system, what is the overhead per unit for product Zed? Select one: A. Sh. 23.5 B.…
Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Titanium Aluminum Total Cost Assembly 500 mach. Hours 500 mach. Hours 44000 Inspections 350 150 84000 2100 labor hours 1900 labor hours Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much assembly cost is assigned to titanium racquets?
An activity based costing system is being considered at Evelia, nv to assign products overhead costs; these overhead costs are currently assigned strictly by number of units produced. First, the two overhead costs of Rent expense and Insurance expense would be allocated to three activity cost pools - Finishing, Sanding, and Other - based on resource consumption. The information used to perform these allocations is below: Overhead Costs: Rent expense: $2,000,000 Insurance expense: $1,650,000 Distribution of Resource Consumption across Activity Cost Pools: Overhead Cost Activity Cost Pools Finishing Sanding Other Rent expense 0.45 0.25 0.30 Insurance expense 0.20 0.35 0.45 In the second stage, Finishing costs would be assigned to products using direct labor hours and Sanding costs would be assigned to products using the number of machine hours. The costs in the Other activity pool would not be assigned to products. Activity data for the company's two products is as…
Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are available for August: Number of units assembled Materials cost per unit Other costs: Direct labor Indirect materials Other overhead Operation cost Materials cost Total cost Number of units Unit cost Fatboy 1,050 $ 2,400 $3,400 Fatboy Screamer 2,100 Required: Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in August. Screamer Total Total 3,150 $3,591,000 598,500 1,795,500
North Street Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity, driver and cost information has been compiled:< Product design: Product Standard Deluxe Overhead costs Machine setup: Number of Setups 17 33 $16,000 Number of Components 7 12 $18,050 Production Number of Direct Labor Hours 720+ 410 e The number of setups and number of components are identified as activity-cost drivers for overhead while it takes the firm one direct labor hour to produce a unit of Standard or Deluxe model. < e Required: a/ Assuming an activity-based costing system is used, what is the total amount of overhead cost assigned to the deluxe model? Compute the overhead assigned using direct labor hours as the allocation base under the traditional costing method. b/ Explain the differences in overhead costs assigned by identifying the differences in the proportion of resources consumed using the unit-level, batch-level, and product level drivers.
Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso’s total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Titanium Aluminum Total Cost Assembly 500 mach. hours 500 mach. hours $27000 Inspections 350 150 $80000 2100 labor hours 1900 labor hours Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing.Using activity-based costing, how much inspections cost is assigned to titanium racquets? $24000. $40000. $56000. $29000.
Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Total Cost of Pool $ 380, 120 86,400 74,672 Estimated Cost Driver 88,400 9,000 525 Activity Pools Machining Designing costs Setup costs E4-5 (Algo) Assigning Costs Using Activity Proportions [LO 4-5, 4-6] Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A 34,000 3,600 60 Number of machine hours Number of design hours Number of batches Cost Driver Number of machine hours Number of design hours Number of batches Product A Product B Product C Total Overhead Assigned Product B Product C 10,400 3,400 285 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. Note: Do not round your intermediate calculations. Round your final answers to nearest whole number. 44,000 2,000 180