An order for 1,000 boxes of Product X has the following production requirements:• 20 machine setups5,000 kilos of raw materials2,000 kilos of hazardous materials40 quality control inspections250 machine hoursRequired:a Suppose the company were to use a single, predetermined overhead rate basedon machine hours, calculate the rate per hour.b. Using the single plant-wide rate, what is the total overhead assigned and theoverhead cost per box of Product X?Calculate the total overhead that should be assigned to the Product X order.C.d.What is the overhead cost per box of Product X? P13-4 The cost accountant of Tacoma Manufacturing Company, manufacturer of Product X,· has established the following overhead cost pools and activity drivers:BudgetedOverheadActivity DriverP100,000 Number of setups75,000 Weight of raw materials30,000 Weight of hazardouschemicals usedOverhead cost poolMachine setupMaterial handlingHazardous waste controlQuality control inspectionOther overhead costs12,000 Number of inspections21,000 Machine hoursP238,000TotalBudgetedlevel foractivity driver200 P500 per setup30,000 kilos P2.50 per kilo10,000 kilos P3.00 per kiloOverhead cost poolOverhead rateMachine setupMaterial handlingHazardous waste controlQuality control inspectionOther overhead costs500 P24.00 per inspection5,000 P4.20 per machine hour

Under traditional costing, the overhead is assigned on the basis of single overhead rate but under…

Answered: P13-4 The cost accountant of Tacoma…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Compute the total overhead that should be assigned to the medical-testing agent order. What is the overhead cost per box of testing agent?
Answer part d, e and f
Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $99,820 Machine hours Assembly 58,900 Direct labor hours Inspecting 21,252 Number of inspections Setup 33,221 Number of setups Materials handling 34,830 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 2,101 1,119 3,220 Direct labor hours 791 2,309 3,100 Number of inspections 724 288 1,012 Number of setups 175 64 239 Number of loads 544 230 774 Units produced 6,569 1,747 8,316
7777
18. Using ABC, the total overhead costs charged to the 1,000 boxes of powdered chemical is:
Q14. ABC Corp manufactures products X45E and K36N. The company uses a plantwide overhead rate based on DLHS (direct labor-hours). It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products X45E and K36N. Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine setups $ 120,000 $ 90,000 Number of products $ 84,000 $ 300,000 6,000 MHs 150 setups Machine-hours Number of setups 2 products 10,000 DLHS Product design Order size Direct labor-hours Product Activity Measure X45E 4,000 К36N Machine-hours 2,000 Number of setups Number of products Direct labor-hours 90 60 1 1 7,000 3,000 Determine the percentage of the total overhead cost that is allocated to Product K36N using the plantwide overhead rate?
"The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Activity Cost Pool Budgeted Overhead cost Cost Driver Budgeted Level for cost Driver Pool Rate Machine Setups $250,000 Number of Setups 125 $2,000 per setup Material Handling 75,000 Weight of Raw Material 37,500 Lb. $2 per pound Hazardous Waste Control 25,000 Weight of hazardous Chemical used 5,000 Lb. $5 per pound Quality Control 75,000 Numbers of Inspections 1,000 $75 per inspection Other Overhead cost 200,000 Machine Hours 20,000 $10 per hours Total $625,000 An order for 1,000 boxes of medical-testing agents has the following production requirements Machine setups ...............................................................................................5 setups Raw material .........................................................................................10,000…
Pharoah Co. has identified an activity cost pool to which it has allocated estimated overhead of $10212000. It has determined the expected use of cost drivers for that activity to be 851000 inspections. Widgets require 217000 inspections, Gadgets 167000 inspections, and Targets 467000 inspections. How much is the overhead assigned to each product? O Widgets $3404000, Gadgets $3404000, Targets $3404000 O Widgets $217000, Gadgets $167000, Targets $467000 O Widgets $3404000, Gadgets $1702000, Targets $5106000 O Widgets $2604000, Gadgets $2004000, Targets $5604000
Southwest Components recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates: Activity Centers Cost Drivers Rate perCost Driver Unit Materials handling Pounds of material handled $ 16 per pound Quality inspections Number of inspections $ 240 per inspection Machine setups Number of machine setups $ 2,600 per setup Running machines Number of machine-hours $ 21.00 per hour Direct materials costs were $305,000 and direct labor costs were $135,000 during July, when the Fabrication Department handled 3,800 pounds of materials, made 700 inspections, had 30 setups, and ran the machines for 15,000 hours. Required: Use T-accounts to show the flow of materials, labor, and overhead costs from the four overhead activity centers through Work-in-Process Inventory and out to Finished Goods Inventory. T- ACCOUNTS (beginning & ending balances) Materials…
Please show the computation. Thank you!
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,207,500, divided into four activities: fabrication, $595,000; assembly, $266,000; setup, $189,000; and inspection, $157,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Inspection Speedboat Bass boat Fabrication Assembly 462 525 setups Each product is budgeted for 7,500 units of production for the year. a. Determine the activity rates for each activity. 17 per direct labor hour 7 per direct labor hour Setup Inspection Fabrication 8,750 dlh $ $ Speedboat Bass boat Assembly Setup 28,500 dlh 9,500 38,000 dlh 26,250 35,000 dlh 63 setups 360 per setup 180 per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. $ per unit $ per unit 109 inspections 766 875 inspections

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