Product A Product B Direct material in pounds 139,500 190,500 Direct labor hours. 30,000 37,500 Machine hours 52,500 22,500 Number of setups 430 860 Number of units produced 15,000 7,500 Additional data: The 330,000 pounds of material were purchased for $544,500. One direct labor hours costs $12. a. Assume that Odyssey Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36). Product A Total cost $2,296,245 x $ Total cost per unit $ 153.08 * $ b. Assume that Odyssey Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36). Product A $3,141,495 * $ 209.43 x $ Total cost Total cost per unit $ Product B 2,907,555 x 387.67 X Total cost $ Total cost per unit $ Product B c. Assume that Odyssey Inc. uses the following activity centers, cost drivers, and costs to apply overhead to products: Cost Pool Cost Driver # of machine hours Product A 2,491,335 * $ 166.09 * $ 2,062,305 x 274.97 x Cost Utilities $750,000 Setup # of setups 193,500 Material handling # of pounds of material 1,419,000 Determine the total cost for each product and the cost per unit. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36). Product B 2,712,465 x 361.66 x
Product A Product B Direct material in pounds 139,500 190,500 Direct labor hours. 30,000 37,500 Machine hours 52,500 22,500 Number of setups 430 860 Number of units produced 15,000 7,500 Additional data: The 330,000 pounds of material were purchased for $544,500. One direct labor hours costs $12. a. Assume that Odyssey Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36). Product A Total cost $2,296,245 x $ Total cost per unit $ 153.08 * $ b. Assume that Odyssey Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36). Product A $3,141,495 * $ 209.43 x $ Total cost Total cost per unit $ Product B 2,907,555 x 387.67 X Total cost $ Total cost per unit $ Product B c. Assume that Odyssey Inc. uses the following activity centers, cost drivers, and costs to apply overhead to products: Cost Pool Cost Driver # of machine hours Product A 2,491,335 * $ 166.09 * $ 2,062,305 x 274.97 x Cost Utilities $750,000 Setup # of setups 193,500 Material handling # of pounds of material 1,419,000 Determine the total cost for each product and the cost per unit. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36). Product B 2,712,465 x 361.66 x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:Product A Product B
Direct material in pounds
139,500 190,500
Direct labor hours
30,000
37,500
Machine hours
52,500
22,500
Number of setups
430
860
Number of units produced
15,000
7,500
Additional data: The 330,000 pounds of material were purchased for $544,500. One direct labor hours costs $12.
a. Assume that Odyssey Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit.
Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36).
Product A
Total cost
$2,296,245 * $
Total cost per unit $ 153.08 * $
b. Assume that Odyssey Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit.
Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36).
Product A
$3,141,495 * $
209.43 * $
Total cost
Total cost per unit $
Product B
2,907,555 *
387.67 *
Total cost
$
Total cost per unit $
Product A
2,491,335 * $
166.09 * $
Product B
c. Assume that Odyssey Inc. uses the following activity centers, cost drivers, and costs to apply overhead to products:
Cost Pool
Cost Driver
Cost
Utilities
$750,000
# of machine hours
# of setups
Setup
193,500
Material handling # of pounds of material 1,419,000
Determine the total cost for each product and the cost per unit.
Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36).
2,062,305 x
274.97 *
Product B
2,712,465 *
361.66 x
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