8 Olmo, Inc, manufactures and sels two products Product KO and Product H The annual production and sales of Product of KO s 800 units and of Product HB00 units The company has an activity bamed costngsystem with the following activity cost pools, activity measures, and expected activityActivityActivity Cost Pools HeasuresEstimatedExpected ActivityOverhead Cost Product Ke Product 1TotalLabor-relatedDLHS550, 0853,3193,2001,004,001,4005,600Production ordersorders900s00Order sie85,9162,5003,100$ 1,49,54)The overhead appled to each unt of Product H9 under activy based costing is closest to: (Round your intermediene ceuletions to 2 decimel pleces)Muple Choicead ocszes OO SEns per unO s42 pers972 per unt

Cost per unit is calculated by dividing the total cost by the number of units produced.

Ono manfact and ses two products Product KO and Product H The annual production and sales of Product of O00 uunts and of Product 00 uns The comp activity besed coting the folowing actvty cost pools, activty measur and expected acivity Activity Activity Cest Pols eases Estineted Inpected Activity Total Product Product H 1,00 Overhead Cest Laborrelated OL 4,0 Production erders Order sie erders $3,19 835,96 100 1,00 2,500 3,100 5,00 $1,4,) The overhead acpled to each unt of Product Hunder actvity baed coting closest tound your 2 decimal pieces)

Ono manfact and ses two products Product KO and Product H The annual production and sales of Product of O00 uunts and of Product 00 uns The comp activity besed coting the folowing actvty cost pools, activty measur and expected acivity Activity Activity Cest Pols eases Estineted Inpected Activity Total Product Product H 1,00 Overhead Cest Laborrelated OL 4,0 Production erders Order sie erders $3,19 835,96 100 1,00 2,500 3,100 5,00 $1,4,) The overhead acpled to each unt of Product Hunder actvity baed coting closest tound your 2 decimal pieces)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?
Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20x1 are as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. Required: 1. Prepare a cost report that lists the value-added, non-value-added, and actual costs for each activity. 2. Which activities are non-value-added? Explain why. Also, explain why value-added activities can have non-value-added costs.
Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: aCalculated using number of dies as the single unit-level driver. bCalculated by multiplying the consumption ratio of each product by the cost of each activity. Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each product. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities. 2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome. 3. What if activities 1, 2, 5, and 8 each had a cost of 650,000 and the remaining activities had a cost of 50,000? Calculate the cost assigned to Wafer A by a fully specified ABC system and then by an approximately relevant ABC approach. Comment on the implications for the approximately relevant approach.
Flynn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Flynn accumulated the following data relative to those activity cost pools and cost drivers. Estimated Use of Annual Overhead Data Cost Drivers per Product Estimated Estimated Use of Cost Product Product Activity Cost Pools Cost Drivers Overhead Drivers per Activity ВС113 AD908 Machine setup Setups $16,400 41 20 21 Machining Machine hours 111,320 4,840 1,060 3,780 Packing Orders 28,800 450 170 280 Using the above data, do the following: Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity Estimated Estimated Use of Cost Activity-Based Overhead Rates Cost Overhead Drivers per Activity Pools Machine per setups setup setuj per machine Machining mach hours hr. per Packing orders orde $ %24 %24 %24 %24
Flynn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Flynn accumulated the following data relative to those activity cost pools and cost drivers. Please prepare the AD908 I have attached in pictures below Annual Overhead Data Estimated Use ofCost Drivers per Product Activity Cost Pools Cost Drivers EstimatedOverhead Estimated Use of CostDrivers per Activity ProductBC113 ProductAD908 Machine setup Setups $16,400 41 20 21 Machining Machine hours 111,320 4,840 1,060 3,780 Packing Orders 28,800 450 170 280 Using the above data, do the following:
Chrzan, Incorporated, manufactures and sells two products: Product EO and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product E0 Product Ne Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Multiple Choice $33.94 per MH $54.20 per MH Direct Expected Labor-Hours Production Per Unit 10.1 410 1,550 9.1 $51.98 per MH $21.40 per MH Activity Measures DLHS orders MHs Total Direct Labor- Hours $ 301,890 61,087 585,366 $948,343 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: 4,141 14, 105 18,246 Product E 4,141 850 5,550 Expected Activity Product NO 14, 105 950 5,250 Total 18,246 1,800 10,800
Salvatori, Inc., manufactures and sells two products: Product A4 and Product Q5. 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 A4 690 7.9 5,451 Product Q5 990 4.9 4,851 Total direct labor-hours 10,302 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 A4 Product Q5 Total Labor-related DLHs $ 167,558 5,451 4,851 10,302 Machine setups setups 15,050 1,250 1,150 2,400 Order size MHs 504,027 5,100 5,400 10,500 $ 686,635 The overhead applied to each unit of Product A4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Flynn Industries has three activity cost pools and two products. It estimates production 3,000 units of Product BC113 and 1,500 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Flynn accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Estimated Use ofCost Drivers per Product Activity Cost Pools Cost Drivers EstimatedOverhead Estimated Use of CostDrivers per Activity ProductBC113 ProductAD908 Machine setup Setups $16,000 40 25 15 Machining Machine hours 110,000 5,000 1,000 4,000 Packing Orders 30,000 500 150 350 Using the above data, do the following: (a). Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity CostPools EstimatedOverhead Estimated Use of CostDrivers per Activity Activity-BasedOverhead Rates Machine setup $ setups…
PT Agile Box produces products 1,2 and 3 from one combined product process. Information relating to the allocation of combined production costs is as follows Production Product Points / Market / unit Volume Units price 1.200 unit 3 200.000 600 unit 250.000 3 500 unit 4 350.000 Total 2.300 unit Based on this data, you allocate a joint production cost of IDR 345,000,000 to each product and calculate the cost / unit of each product if PT DZAKI uses the following alternatives: a. Average unit method b. Weighted average method (based on points /units) 2. 1, 2.
Johnson Co. Ltd. make and sell two product Q and Z, each of which passes through the same automated production operations. The following estimated information is available for period 1: Product unit dataDirect material costVariable production overhead costOverall hours per product unit(hours)0.25 0.15 Production/sales of product Q and Z are 120,000 units and 45,000 units respectively. The selling price per unit for Q and Z are Ghc 60 and Ghc 70 respectively Maximum demand for each product is 20% above the estimated sales levels.Total fixed production overhead cost is Ghc 1,470,000. This is absorbed by product Q and Z at an average rate per hour based on the estimated production levels. Required: Using net profit as a decision measure, show why management of Johnson Co. Ltd. argues that it is indifferent on financial grounds as to the mix of product Q and Z which should be produced and sold and calculate the total net profit for the period. One of the production operations has…
Olmo, Incorporated, manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of KO is 1,200 units and of Product H9 is 1,200 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS orders MHs Estimated Expected Activity Overhead Cost Product K0 Product H9 $ 549,708 52,719 835,316 $ 1,437,743 9,600 1,300 3,100 4,800 200 3,900 Total 14,400 1,500 7,000 The overhead applied to each unit of Product H9 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)