Question list K Question 1 * Question 2 Trendy Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Trendy does large custom orders. Trendy budgets to produce 10,000 basic trophies and 5,000 deluxe troph Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 units per batch but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50 units per batch. (Click the icon to view budgeted information.) Read the requirements. * Question 3 Forming 25,000 $ 5.000 Requirements - X Data table The controller has asked you to compare plantwide, department, and activity-based cost allocation. Trendy Budgeted Information for the Year Ended November 30, 2020 Forming Department Basic Deluxe Total Direct materials $ Direct manufacturing labor 25,000 $ 24,000 19,800 $ 25,000 44,800 49,000 Overhead costs: Set up 36,750 Overhead costs: General overhead 31,850 Assembly Department 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. 3. Calculate the budgeted unit cost of basic and deluxe trophies if Trendy allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department. 4. Explain briefly why plantwide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why? Direct materials Direct manufacturing labor Overhead costs: General overhead Basic Deluxe Total $ 5,000 $ 4,450 $ 15,500 19,500 9,450 35,000 42,000 Print Done Print Done ulate the rate. (Round you

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%
Question list
K
Question 1
* Question 2
Trendy Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Trendy does large custom orders. Trendy budgets to produce 10,000 basic trophies and 5,000 deluxe troph
Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general
overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 units per batch but
because of the more intricate detail of the deluxe trophies, they are formed in batches of 50 units per batch.
(Click the icon to view budgeted information.)
Read the requirements.
* Question 3
Forming
25,000 $
5.000
Requirements
- X
Data table
The controller has asked you to compare plantwide, department, and activity-based cost
allocation.
Trendy Budgeted Information for the Year Ended November 30, 2020
Forming Department
Basic
Deluxe
Total
Direct materials
$
Direct manufacturing labor
25,000 $
24,000
19,800 $
25,000
44,800
49,000
Overhead costs: Set up
36,750
Overhead costs: General overhead
31,850
Assembly Department
1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single
plantwide overhead rate, if total overhead is allocated based on total direct
costs. (Don't forget to include direct material and direct manufacturing labor
cost in your unit cost calculation.)
2. Calculate the budgeted unit cost of basic and deluxe trophies based on
departmental overhead rates, where forming department overhead costs are
allocated based on direct manufacturing labor costs of the forming department
and assembly department overhead costs are allocated based on total direct
manufacturing labor costs of the assembly department.
3. Calculate the budgeted unit cost of basic and deluxe trophies if Trendy
allocates overhead costs in each department using activity-based costing,
where setup costs are allocated based on number of batches and general
overhead costs for each department are allocated based on direct
manufacturing labor costs of each department.
4. Explain briefly why plantwide, department, and activity-based costing systems
show different costs for the basic and deluxe trophies. Which system would you
recommend and why?
Direct materials
Direct manufacturing labor
Overhead costs: General overhead
Basic
Deluxe
Total
$
5,000 $
4,450 $
15,500
19,500
9,450
35,000
42,000
Print
Done
Print
Done
ulate the rate. (Round you
Transcribed Image Text:Question list K Question 1 * Question 2 Trendy Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Trendy does large custom orders. Trendy budgets to produce 10,000 basic trophies and 5,000 deluxe troph Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 units per batch but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50 units per batch. (Click the icon to view budgeted information.) Read the requirements. * Question 3 Forming 25,000 $ 5.000 Requirements - X Data table The controller has asked you to compare plantwide, department, and activity-based cost allocation. Trendy Budgeted Information for the Year Ended November 30, 2020 Forming Department Basic Deluxe Total Direct materials $ Direct manufacturing labor 25,000 $ 24,000 19,800 $ 25,000 44,800 49,000 Overhead costs: Set up 36,750 Overhead costs: General overhead 31,850 Assembly Department 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. 3. Calculate the budgeted unit cost of basic and deluxe trophies if Trendy allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department. 4. Explain briefly why plantwide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why? Direct materials Direct manufacturing labor Overhead costs: General overhead Basic Deluxe Total $ 5,000 $ 4,450 $ 15,500 19,500 9,450 35,000 42,000 Print Done Print Done ulate the rate. (Round you
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 1 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education