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Question Content Area
Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total
overhead information:Units Setups Inspections Assembly (dlh) Small table lamps 3,000 8,000 9,000 16,000 Desk lamps 6,000 16,000 15,000 12,000
Activity Total Activity-Base Usage Budgeted Activity Cost Setups 24,000 $60,000 Inspections 24,000 120,000 Assembly (dlh) 28,000 280,000 The total factory overhead to be allocated to desk lamps is
a.$235,000b.$230,000c.$306,667d.$225,000
It is mentioned to calculate the total factory overhead to be allocated to the desk lamps. Thus, it is calculated by adding the total overhead of the desk lamp. The total overhead of the desk lamp is calculated on the basis of activity pools. The factory overhead of each activity pool is calculated by multiplying the overhead rates with the units of each activity pool.
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- 1.Smith Manufacturing has five activity cost pools and two products (a budget toaster oven and a deluxe toaster oven). Information is presented below: Activity. Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver Orders Setups Machine hours Parts Inspections Est. Overhead $ 130,000 297,000 1,000,000 1,600,000 300,000 Cost Drivers by Product Budget 600 500 150,000 1,200,000 550 Deluxe 400 400 100,000 800,000 450 Instructions Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. Round your answer to the nearest cent.please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)Units produced Production runs per quarter Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection Total overhead Manufacturing overhead in the plant has three main functions: supervision, setup labor, and Incoming material Inspection. Data on manufacturing overhead for a representative quarter follow: $ 288,750 336,000 241,500 $ 866,250 Standard 14,000 a. Using current costing system b. Using proposed ABC system 50 $30 50 Required: a. Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct labor costs as the allocation basis for overhead). b. Compute the unit costs for the two products, Standard and Premium, using the proposed ABC system at Benton. Note: For all requirements, do not round Intermediate calculations. Round your answers to 2 decimal places. S S Answer is complete but not entirely correct. Premium 3,500 25 $64 75 Unit cost Standard 120.00 X S 117.67 X S…
- DhapaActivity Base Entry Dining Total Machine hours 5,320 4,710 10,030 Direct labor hours 4,570 6,860 11,430 Number of inspections 1,940 610 2,550 Number of setups 310 70 380 Number of loads 700 190 890 Units produced 10,600 5,300 15,900 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting per machine hour Assembly per direct labor hour Inspecting 24 per inspection Setup per setup Materials handling per load b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amounts to the nearest cent. Product Total Activity Cost Activity Cost Per Unit Entry Lighting Fixtures Dining Room Lighting FixturesActivity-Based Costing Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities—production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities: Activity Activity Cost Activity Base Production setup $ 44,000 Number of setups Procurement 13,500 Number of purchase orders (PO) Quality control 97,500 Number of inspections Materials management 84,000 Number of components Total $239,000 The activity-base usage quantities for each product are as follows: Setups PurchaseOrders Inspections Components Unit Volume Custom 290 760 1,200 500 2,000 Standard 110 140 300 200 2,000 Total 400 900 1,500 700 4,000 a. Determine an activity rate for each activity. Activity Rates Production Setup Procurement Quality Control…
- Activity Rates and Product Costs using Activity-Based Costing Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity BudgetedActivity Cost Activity Base Casting $560,000 Machine hours Assembly 75,000 Direct labor hours Inspecting 30,000 Number of inspections Setup 18,750 Number of setups Materials handling 14,000 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 7,500 12,500 20,000 Direct labor hours 2,000 3,000 5,000 Number of inspections 500 250 750 Number of setups 150 100 250 Number of loads 400 300 700 Units produced 5,000 2,500 7,500 a.…Process Assembly Finishing Support Activity Machining Setups Budgeted Cost $311,800 Activity Cost Driver Activity Usage Machine hours (MH) 7,600 24,000 $335,800 Setups 240 Inspecting Purchasing $ 224,000 Inspections 800 $ 130,000 Purchase orders 540 Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Setups Inspections Purchase orders Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit Model X Model Z 2,000 4,000 2,200 5,400 80 160 540 260 360 180 Model X $410 Model Z $ 390 160 110 145 160 1. Compute the activity rate for each activity using activity-based costing. 2. Using activity-based costing, compute the overhead cost per unit for each model. 3. Compute the total product cost per unit for each model. 4. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).Factory depreciation Indirect labor Factory electricity Indirect materials Selling expenses Administrative expenses Total costs Tortilla chips Potato chips Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: Budgeted Volume Processing Hours (Cases) Per Case Pretzels Total Tortilla chips Potato chips $24,012 59,508 6,000 6,000 1,200 13,200 Pretzels 6,786 14,094 33,408 18,792 $156,600 Total If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. per processing hour 0.12 0.15 b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted accounting principles. Total Per-Case Factory Overhead Factory Overhead 0.10
- Question Content Area Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: Line Item Description Units Setups Inspections Assembly (dlh) Small table lamps 4,000 3,200 9,000 41,200 Desk lamps 7,100 6,400 15,000 41, 200 Activity Total Activity - Base Usage Budgeted Activity Cost Setups 9, 600 $ 86,400 Inspections 24,000 120,000 Assembly (dlh) 72,100 353, 290 The total factory overhead to be allocated to desk lamps is a. $167, 240 b. $334, 480 c. $602, 064 d. $434,824Activity-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…
