Prepare a statement showing the total overhead cost:- (i) for each production department and (ii) per unit, within each department
Q: Wongtien Electronics Corp. in Hong Kong, SAR, China, manufactures tablets, laptops and desktop PCs.…
A: Given information:
Q: Activity Activity Base Casting Machine hours Assembly Direct labor hours Inspecting Number of…
A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…
Q: A summary of the usage of the service department services by other service departments as well as by…
A: Under direct method of allocation, the service department costs are directly attributed to…
Q: Salado Inc. provides cleaning services through its Residential and Commercial divisions. Support…
A: Cost allocation is the process wherein the costs are identified and allocated to the appropriate…
Q: Activity-Based Product Costing Sweet Sugar Company manufactures three products (white sugar, brown…
A: Activity-Based Costing: Activity-Based Costing refers to the allocation of the factory overheads…
Q: Panamint Systems Corporation is estimating activity costs associated with producing disk drives,…
A: Calculate the total number of engineering changes:The total number of engineering changes is 50…
Q: mervice
A: First we will alloate producing dept A and B's cost to service dept C, D & E. Thus we will get…
Q: Middler Corporation, a manufacturer of electronics and communications systems, uses a service…
A: Solution a: Computation of Service Charge rate for CCS department - Middler Corporation CCS…
Q: Crash Bang, Co. uses a standard cost system and provides the following information: Standards:…
A: Budgeted VOH /Budgeted Direct Labor Hours Standard VOH allocation rate $ 5,55,000.00/566 $…
Q: Middler Corporation, a manufacturer of electronics and communications systems, uses a service…
A: Activity-Based Costing (ABC) is a costing methodology that assigns overhead costs to specific…
Q: Kerriman Company provides the following ABC costing information: Activities Account inquiry hours…
A: The activity rate is calculated as the estimated activity costs divided by the activity usage. The…
Q: Logan Products has two production departments-assembly and finishing. These are supported by two…
A: Cost allocation is used in analyzing or identifying the process to assign the cost to people, and…
Q: Of the step method of allocation is used, how much supervision to production department No. 1 be
A: Service department cost Allocation: the service department cost of a company is allocated to the…
Q: Extreme Manufacturing Company provides the following ABC costing information:ActivitiesTotal…
A: Under activity-based costing method, the cost is allocated to each activity based on its…
Q: Also include controllable cost
A: Prepare a responsibility report for April for the cost center. A cost center is a specific…
Q: Rafner Manufacturing has the following budgeted data for its two production departments. Budgeted…
A: Predetermined Overhead Rate:— This is the rate that is used to allocate manufacturing overhead cost…
Q: The following data are available: Budgeted overhead Overhead rate per MHr. Actual overhead Actual…
A: Overhead rate: Overhead rate is calculated before the period begins. This overhead is calculated…
Q: Zhedong plans to use activity-based costing to determine its product costs. The total factory…
A: Answer - Part 1 - Single Plantwise OH Rate - Predetermined overhead rate = (estimated manufacturing…
Q: Logan Products has two production departments-assembly and finishing. These are supported by two…
A: Cost allocation is used in analyzing or identifying the process to assign the cost to people, and…
Q: Rafner Manufacturing has the following budgeted data for its two production departments. Budgeted…
A: Overhead rate can be calculated by total overhead cost divided by cost centre
Q: Sweet Sugar Company manufactures three products (white sugar, brown sugar, and powdered sugar) in a…
A: Answer: Part 1:
Q: Panamint Systems Corporation is estimating activity costs associated with producing disk drives,…
A: Factory overhead refers to indirect manufacturing costs such as utilities and maintenance, not…
Q: A company reports the following budgeted overhead costs and budgeted cost driver activity. Activity…
A: Activity rates are computed as budgeted activity costs divided budgeted quantity of allocation base.
Q: A manufacturer identified the following activities, costs, and activity drivers. Compute the…
A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…
Q: The following information is departmental cost allocation with two service departments and two…
A: "Since you have posted a question with multiple sub-parts,we will solve first three sub-parts for…
Q: In the Assembly Department of Concord Company, budgeted and actual manufacturing overhead costs for…
A: MANUFACTURING OH BUDGETManufacturing OH Budget is the Management Estimation of Manufacturing OH Cost…
Q: The following information is departmental cost allocation with two service departments and two…
A: Cost allocation refers to the process of distributing or assigning costs to various activities,…
Q: Is estimatinng activity costs associated with producing disk drives, tapes drives, and wire drives.…
A: The activity based costing is used to allocate the overhead costs to the production on the basis of…
Q: Sterling Archer Spy Agency provides independent intelligence gathering services. The agency has the…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: 1. What are the costs allocated to the two production departments using (a) the direct method, (b)…
A: Direct Method: The direct allocation method is a technique for charging the cost of service…
Q: ervice Department Charges and Activity Bases Middler Corporation, a manufacturer of electronics and…
A: Under activity based costing system, all indirect costs or overheads are allocated to various…
Q: Crash Bang, Co. uses a standard cost system and provides the following information: Standards:…
A: Variable overhead allocation rate.Variable overhead allocation rate is the base at which the costs…
Q: Megan Company has two departments, X and Y Overhead is applied based on direct-labor hours in…
A: The overhead rate with a certain period, divided by a distribution measure, is the sum of indirect…
Q: A company uses activity-based costing to determine the costs of its three products: A, B, and C. The…
A: Activity based costing plays a key role in overhead costs individually for the product where it was…
Q: Panamint Systems Corporation is estimating activity costs associated with producing disk drives,…
A: Under activity based costing method, the cost is allocated to each activity based on its…
Q: The following overhead data are for a department in a large company. Activity level (in units)…
A: Performance report provides an assessment of how well costs were controlled in the department. It…
Q: A company uses activity-based costing to determine the costs of its three products: A, and C. The…
A: The activity rate is calculated as total budgeted cost divided by budgeted usage. The overhead is…
Q: Required: 1. Determine the factory overhead rates under the multiple production department rate…
A: Under traditional costing, costs are allocated on the basis of some measure like direct labour. But…
Q: Crash Bang, Co. uses a standard cost system and provides the following information: Standards:…
A: The variable overhead efficiency variance refers to the difference between the actual time taken to…
Q: Panamint Systems Corporation is estimating activity costs associated with producing disk drives,…
A: Activity-based costing (ABC) refers to the costing method which assigns overhead and indirect costs…
Q: Sequential (Step) Method of Support Department Cost Allocation Chekov Company has two support…
A: The sequential method is utilised to divide the expense of service departments among other…
Q: Logan Products has two production departments—assembly and finishing. These are supported by two…
A: According to the question given, we need to prepare the overhead distribution summary to allocate…
Q: Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information…
A: Indirect cost is the costs that are not directly related to the products or services that are…
LOVE Limited operates activity based costing and activity based budgeting systems.
The following information has been provided in respect of three separate production departments:
| Dept. 1 | Dept. 2 | Dept.3 | Total | |
| Budgeted production units | 20 000 | 10 000 | 15 000 | 45 000 |
| number of repair hours | 6 000 | 1 400 | 5 200 | 12 600 |
| number of orders issued | 500 | 1000 | 800 | 2 300 |
| Machine hours | 400 000 | 300 000 | 200 000 | 900 000 |
Production
| N$ | |
| Machining | 1 755 000 |
| Stores | 632 500 |
| Quality assurance | 405 000 |
| Maintenance | 378 000 |
Prepare a statement showing the total overhead cost:-
(i) for each production department and
(ii) per unit, within each department
Step by step
Solved in 3 steps with 4 images
- Required information Use the following information for the Quick Studies below. (Algo) Rafner Manufacturing has the following budgeted data for its two production departments. Budgeted Data Overhead cost Direct labor hours Machine hours $ 1,358,900 Assembly 12,700 direct labor hours. 6,700 machine hours The departmental overhead rate for Assembly QS 17-7 (Algo) Computing departmental overhead rates LO P2 What is the Assembly department overhead rate using direct labor hours? What is the Finishing department overhead rate using machine hours? The departmental overhead rate for Finishing $ 1,068,800 Finishing 20,700 direct labor ho 16,700 machine hoursGlencoe, Inc., costs products using a normal costing system. The following data is available for last year: Budgeted: 4.1 4.2 4.3 Overhead Machine hours Direct labour hours 4.4 Actual: Overhead Machine hours Direct labour hours Prime cost Number of units R476 000 140 000 17 000 Overhead is applied on the basis of direct labour hours. Required: R475 000 137 000 16 550 R1 750 000 250 000 Calculate the predetermined overhead rate. Calculate the applied overhead for last year. Was the overhead over- or under-applied, and by how much? Calculate the total cost per unit produced (to 2 decimal places).Please help me Thankyou.
- 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 $364,200 Number of purchase orders Scheduling 243,400 Number of production orders Materials handling 417,300 Number of moves Product development 773,900 Number of engineering changes Production 1,428,300 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,120 270 1,500 11 2,200 2,100 Tape drives 2,400 245 500 7 8,500 3,500 Wire drives 11,500 790 3,500 21 10,700 2,400 The activity-based cost for each tape drive unit is Oa. $291.69 Ob. $239.52 Oc. $740.06 Od. $20.21Refer to the pictur ebelow: Find: 1. Total Cost of Product A under ABC System2. Total Cost of Product B under ABC System3. Selling Price per unit of Product B assuming profit margin of 20% above costPanamint 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 $302,300 Number of purchase orders Scheduling $220,600 Number of production orders Materials handling $416,500 Number of moves Product development $755,400 Number of engineering changes Production $1,551,600 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,160 380 1,320 11 1,900 1,600 Tape drives 2,500 155 770 6 9,900 4,000 Wire drives 12,700 770 3,900 23 10,400 2,700 Determine the activity rate per production order for…
- Please help me with all answers1-Sweet Sugar Company manufactures three products (white sugar, brown sugar, and powdered sugar) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: Activity Budgeted Activity Cost Production $500,000 Setup 144,000 Inspection 44,000 Shipping 115,000 Customer Service 84,000 Total $887,000 The activity bases identified for each activity are as follows: Activity Activity Base Production Machine hours Setup Number of setups Inspection Number of inspections Shipping Number of customer orders Customer Service Number of customer service requests The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Machine Hours Number of Setups Number of…Logan Products has two production departments—assembly and finishing. These are supported by two service departments—sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Total Labor Hours Used by DepartmentsSourcing Operations Assembly FinishingSourcing - 20,000 40,000 60,000Operations 10,000 - 60,000 50,000 The costs incurred in the plant are as follows: Departments Departmental CostsSourcing $ 177,000Operations 225,000Assembly 418,000Finishing 263,000Total $ 1,083,000 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method?
- A company reports the following budgeted overhead costs and budgeted cost driver activity. Activity (Cost driver) Quality (number of units inspected) Factory services (square feet) Purchasing (number of orders) Activity Quality Factory services Purchasing Budgeted Cost $ 52,116 $ 123,216 $ 17,472 Use activity-based costing to compute the activity rate for each activity. Note: Round your "Activity Rate" to 2 decimal places. Budgeted Cost $ 52,116 123,216 17,472 Budgeted Activity of Cost Driver Standard Deluxe Total 3,180 860 3,820 2,220 188 228 Budgeted Activity Usage Activity Rate 4,040 6,040 416Activity-Based Product Costing Sweet Sugar Company manufactures three products (white sugar, brown sugar, and powdered sugar) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: Activity Budgeted Activity Cost Production $462,000 Setup 289,100 Inspection 142,400 Shipping 129,000 Customer service 51,200 Total $1,073,700 The activity bases identified for each activity are as follows: Activity Activity Base Production Machine hours Setup Number of setups Inspection Number of inspections Shipping Number of customer orders Customer service Number of customer service requests The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Machine Hours Number…When actual manufacturing overhead costs are incurred in a process cost system, they are debited to a. Work in Process account b. the Finished Goods Inventory account C. a Manufacturing Overhead account d. Cost of Goods Sold Muscat Inc. is working on its cash budget for December. The budgeted beginning cash balance is $14,000. Budgeted cash receipts total $127,000 and budgeted cash T 0000 How mu
