Olmo, Inc., manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of K0 is 600 units and of Product H9 is 600 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity.ActivityMeasures Overhead Cost Product KOEstimatedExpected ActivityActivity Cost PoolsLabor-relatedProduction ordersProduct H9Total9,0001,3006,800DLHS$ 550,40853,419836,0166,0007003,8003,000orders600Order sizeMHs3,000$1,439,843The overhead applied to each unit of Product KO under activity-based costing is closest to: (Round your Intermedlate calculations to 2 declmal places.)Multiple Cholce$611.60 per unlt$1.438.16 per unit.$778.62 per unitC479 95 nerınlt< Prev8 of 10Next >3自!92°F AQI 619/9pe here to searchDELL

Activity rate = Estimated overhead cost/Total expected activity Labor related activity rate =…

Answered: Olmo, Inc., manufactures and sells two…

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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Z Company uses activity-based costing for its product Apex and Ultimo. The total estimated annual overhead cost for set up was RO 440,000 and the expected activity was 4000 set ups for the period. If product Apex requires 1800 set ups, the amount of overheads allocated to product Apex for set up cost would be: O a. RO 198,000 O b. RO 180,000 Oc. RO 298,000 O d. RO 280,000 Which among the following is not an activity? O a. A customer O b. Placing purchase order O c. Machine set up O d. After sales service
Spates, Incorporated, manufactures and sells two products: Product H2 and Product E0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product H2 200 7.0 1,400 Product E0 200 6.0 1,200 Total direct labor-hours 2,600 The company’s expected total manufacturing overhead is $271,468. If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product H2 would be closest to: (Round your intermediate calculations to 2 decimal places.)
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Activity Rate Supporting direct labor $ 7 per direct labor-hour Machine processing $3 per machine - hour Machine setups $35 per setup Production orders $ 160 per order Shipments $ 120 per shipment Product sustaining $ 875 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year 200 2,000 Direct labor -hours 950 40 Machine - hours 3,000 30 Machine setups 7 2 Production orders 7 2 Shipments 14 2 Product sustaining 22 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
Harrison Company makes two products and uses a traditional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced. Rascon. $ 11.00 $ 2.80 0.50 10,000 These products are customized to some degree for specific customers. Required: 1. The company's manufacturing overhead costs for the year are expected to be $606,100. Using the company's traditional costing system, compute the unit product costs for the two products. 2. Management is considering an activity-based absorption costing system in which half of the overhead would continue to be allocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expected to be distributed as follows during the upcoming year: Parcel Engineering design time (in hours) 4,500 Compute…
A company has the following overhead costs and activities: Estimated Expected Activity Product V Product W Product X Overhead Activities and Activity Measures Machine setups (setups) Processing customer orders (orders) Assembling products (assembly-hours) $9,178.00 Cost $7,234.50 $3,565.50 69 12 10 20 9 21 492 697 111 1. If the company allocates overhead to products using assembly hours as the single allocation base, how much overhead will be allocated to product X? A. $1,706 B. $784 C. $618 D. $304 2. How much overhead cost would be assigned to Product V using the activity-based costing system? A. $158 B. $91,722 C. $10,385 D. $5,485
Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Activity Rate Supporting direct labor $ 7 per direct labor-hour Machine processing $ 3 per machine-hour Machine setups $ 40 per setup Production orders $ 150 per order Shipments $ 115 per shipment Product sustaining $ 900 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year 200 2,000 Direct labor-hours 950 40 Machine-hours 3,200 30 Machine setups 17 2 Production orders 17 2 Shipments 34 2 Product sustaining 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
what is the predetermind rate?
Newtown Inc., manufactures and sells two products: Product U5 and Product X2. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product U5 Product X2 Total Labour-related DLHs $36,180 2,400 1,200 3,600 Product testing tests 65,760 400 600 1,000 General factory MHs 133,984 4,000 3,900 7,900 $235,924 The total overhead applied to Product X2 under activity-based costing is closest to: a. $157,272 b. $141,555 c. $117,660 d. $67,839
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates $ 7.00 per direct labor-hour $7.00 per nachine-hour $30.00 per setup $ 200.00 per order $140.00 per shipment $7.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year Total Expected Activity 378 852 Direct labor-hours 1,200 30 Machine-hours 2,200 50 Machine setups 6 1 Production orders 5 1 7 378 $ 5.50 $ 4.75 4,000 852 $32.00 $ 9.00 100 Shipments Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates $ 7.00 per direct labor-hour $7.00 per machine-hour $ 30.00 per setup $ 200.00 per order $ 140.00 per shipment $ 7.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year Total Expected Activity 378 B52 Direct labor-hours 1,200 30 Machine-hours 2,200 50 Machine setups 6 1 Production orders 1 Shipments 7 1 378 $ 5.50 852 $ 32.00 $ 4.75 $ 9.00 4,000 100 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost
1. Compute the product margins for the XT-100 and LT-200 under the company’s traditional costing system. 2. Compute the product margins for XT-100 and LT-200 under the activity-based costing system.
Petitte Corporation has provided the following data from its activity-based costing system: annual unit production and sales 410annual machine hours 700annual number of orders 30annual inspection hours 30direct materials cost 45.67/unitdirect labor cost 31.24/unit Data concerning the company's product K54A below: annual unit production and sales 410annual machine hours 700annual # of orders 30annual inspection hours 30direct materials cost 45.67/unitdirect labor cost 31.24/unit According to the activity-based costing system, the unit product cost of product K54A is closest to: $112.64 per unit $114.99 per unit $116.98 per unit $76.91 per unit

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