Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be t separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $348,600 Number of purchase orders Scheduling 200,100 Number of production orders Materials handling 471,600 Number of moves Product development 741,200 Number of engineering changes Production 1,511,600 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 3,910 380 1,430 10 1,900 2,400 Tape drives 1,600 235 570 8,000 3,700 Wire drives 11,300 880 4,200 28 11,500 2,300

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be t separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $348,600 Number of purchase orders Scheduling 200,100 Number of production orders Materials handling 471,600 Number of moves Product development 741,200 Number of engineering changes Production 1,511,600 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 3,910 380 1,430 10 1,900 2,400 Tape drives 1,600 235 570 8,000 3,700 Wire drives 11,300 880 4,200 28 11,500 2,300

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Description: Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to fourseparate activity pools. The budgeted activity cost and activity base data by pro

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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Joker Ltd manufactures two products, Normal and Plus. It has recently implemented an activity-based costing system for its manufacturing overhead costs, with the budgeted activity cost and budgeted quantity of activity driver as follows: Activity Budgeted Activity Cost Activity Driver Budgeted Quantity of Activity Driver Labour-related 205,000 Direct labour hours 41,000 Machine setups 227,000 Number of setups 5,000 General factory 340,000 Machine hours 34,000 772,000 The breakdown of the expected consumption of activities by the two products is as follows: Normal Plus Labour-related 25,000 16,000 Machine setups 2,000 3,000 General factory 20,000 14,000 For the next accounting period, the expected production volume of Normal is 4,500 units and Plus is 3,000 units. Required:Calculate the overhead cost per unit of a Plus.
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $331,200 Number of purchase orders Scheduling 206,700 Number of production orders Materials handling 450,000 Number of moves Product development 799,500 Number of engineering changes Production 1,521,400 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,030 290 1,340 13 2,100 1,600 Tape drives 2,500 175 600 8,400 3,900 Wire drives 11,200 730 3,600 22 10,400 2,800 The activity rate for the materials handling cost pool is O a. $81.23 per move Ob. $18.68 per move Oc. $72.79 per move Od. $172.97 per move
Activity Cost Pools, Activity Rates, and Product Costs using Activity-Based Costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base formation are provided as follows: Activity Procurement Scheduling Materials handling Product development Total cost Ovens Refrigerators Totals Activity Pool Cost $12,600 90,000 11,000 50,000 $163,600 The estimated activity-base usage and unit information for two product lines was determined as follows: Ovens Refrigerators Number of purchase orders Number of production orders Number of moves Number of engineering changes Number of Purchase Orders 400 300 700 Procurement (per purchase order) Scheduling (per production order) Materials handling (per move) Product development (per engineering change order) Activity Base Number of…
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $323,200 Number of purchase orders Scheduling 202,000 Number of production orders Materials handling 437,000 Number of moves Product development 700,700 Number of engineering changes Production 1,408,000 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,170 440 1,480 14 2,400 2,100 Tape drives 1,600 225 570 4 9,100 3,700 Wire drives 12,700 890 4,400 30 10,700 2,400 The activity rate for the procurement activity cost pool is a.$63.42 per purchase order b.$17.50 per purchase…
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nt Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are as follows: Procurement Scheduling Materials handling Activity Cost $370,000 Activity Base Number of purchase orders 250,000 Number of production orders 500,000 Number of moves Product development 730,000 Number of engineering changes Production 1,500,000 Machine hours Number of Purchase Number of Number Production Number of Number of Engineering Machine Orders Orders Moves Changes Hours of Units Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 The activity-based cost (rounded to the nearest cent) for each wire drive unit is a. $204.13 b. $173.51 c. $744.06 d. $394.12 Previous Next
The measure of activity in the standard costing system used at Esta GmbH is machining hours. The company's flexible manufacturing overhead budget and then data regarding the most recent period's operations are given below: Flexible Budget: Budgeted Level of Activity: 6,600 machining hours Overhead costs at the Budgeted activity level: Variable Overhead Cost: $17,226 Fixed Overhead Cost: $13,992 Most Recent period's operations: Actual level of activity: 7,200 machining hours Standard level of activity for output: 7,140 machining hours Actual total variable overhead cost: $17,856 Actual total fixed overhead cost: $14,256 PART A What is the variable overhead rate variance? (936 favorable, 481 unfavorable, 630 unfavorable, 779 favorable, OR 2,267 favorable) PART B What is the variable overhead efficiency variance? (157 unfavorable, 1409 unfavorable, 1566 unfavorable, 1488 unfavorable, OR 149 unfavorable) PART C What is the fixed overhead budget variance? (264 unfavorable, 1272…
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $356,700 Number of purchase orders Scheduling 245,900 Number of production orders Materials handling 481,200 Number of moves Product development 719,400 Number of engineering changes Production 1,487,000 Machine hours Number ofPurchaseOrders Number of ProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 3,940 270 1,350 12 1,600 1,800 Tape drives 1,900 185 590 6 9,600 4,400 Wire drives 11,300 880 3,600 28 11,300 2,000 The activity rate for the materials handling cost pool is a. $184.19 per move b. $20.81 per move c. $66.09 per…
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Cost Activity Base $392,400 Number of purchase orders 233,100 Number of production orders 409,400 Number of moves 708,700 Number of engineering changes 1,526,300 Machine hours Number of Purchase Orders Number of Number Number of of Moves Engineering Changes 11 7 23 Production Orders 4,090 280 1,800 185 12,000 910 The activity-based cost for each disk drive unit is Oa. $793.58 Ob. $21.93 Oc. $235.34 Od. $191.6 1 1,410 740 4,500 Machine Hours 1,800 8,300 11,500 Number of Units 2,300 4,300 2,400
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