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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

FINANCIAL ACCOUNTING
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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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: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
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
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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