Product-Costing Accuracy, Plantwide and Departmental Rates, ABC Escuha Company produces two type of calculators: scientific and business. Both p Product-Related Data Business Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Direct labor hours: Scientific calculator Business calculator Total Machine hours: Scientific calculator Business calculator Total Overhead costs: Setup costs Inspection costs Power Maintenance Total Scientific 72,000 $250,000 101,800 44,800 100 77,800 122.160 199,960 2,000 2,250 Department Data Department 1 Department 2 22,500 369,000 391,500 720,000 $2,500,000 1,018,000 448,000 $233,000 165,000 257,000 214.000 $869,000 150 3,000 9,000 24,000 895,840 919,840 22,300 79,000 101,300 $233,000 165,000 136,000 213.500 $747,500 Required: 1. Compute the overhead cost per unit for each product using a plantwide, unit-b. Plantwide rate per direct labor hour
Product-Costing Accuracy, Plantwide and Departmental Rates, ABC Escuha Company produces two type of calculators: scientific and business. Both p Product-Related Data Business Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Direct labor hours: Scientific calculator Business calculator Total Machine hours: Scientific calculator Business calculator Total Overhead costs: Setup costs Inspection costs Power Maintenance Total Scientific 72,000 $250,000 101,800 44,800 100 77,800 122.160 199,960 2,000 2,250 Department Data Department 1 Department 2 22,500 369,000 391,500 720,000 $2,500,000 1,018,000 448,000 $233,000 165,000 257,000 214.000 $869,000 150 3,000 9,000 24,000 895,840 919,840 22,300 79,000 101,300 $233,000 165,000 136,000 213.500 $747,500 Required: 1. Compute the overhead cost per unit for each product using a plantwide, unit-b. Plantwide rate per direct labor hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Yu.32.
Transcribed Image Text:Overhead cost per unit:
Scientific
Business
per unit
per unit
2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead
cost per unit to the nearest cent if rounding is required.
Departmental rates:
Department 1
Department 2
Overhead cost per unit:
Scientific
Business
Repeat using direct labor hours for Department 1 and machine hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required.
Departmental rates:
Department 1
Department 2
Overhead cost per unit:
Scientific
Business
per machine hour.
per direct labor hour.
Scientific
Business
per unit
per unit
per direct labor hour
per machine hour
per unit
per unit
3. Compute the overhead cost per unit for each product using activity-based costing. Round your calculations and answers to the nearest cent.
Overhead Cost
per unit
per unit
Transcribed Image Text:Product-Costing Accuracy, Plantwide and Departmental Rates, ABC
Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products:
Product-Related Data
Business
Units produced per year
Prime costs
Direct labor hours
Machine hours
Production runs
Inspection hours
Maintenance hours
Direct labor hours:
Scientific calculator
Business calculator
Total
Machine hours:
Scientific calculator
Business calculator
Total
Overhead costs:
Setup costs
Inspection costs
Power
Maintenance.
Total
Scientific
72,000
$250,000
101,800.
44,800
100
2,000
2,250
Department Data
Department 1 Department 2
77,800
122,160
199,960
22,500
369,000
391,500
720,000
$2,500,000
1,018,000
448,000
$233,000
165,000
257,000
214.000
$869,000
150
3,000
9,000
24,000
895,840
919,840
22,300
79,000
101,300
$233,000
165,000
136,000
213,500
$747,500
Required:
1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor hours. Round your calculations and answers to the nearest cent.
Plantwide rate
per direct labor hour
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