None QUESTION THREEThe following is a list of unit costs for a single product, incurred in a period, using eithermarginal costing or absorption costing:Marginal costingKAbsorption costingKKKProduction costs: Prime cost4:204.20Variable overhead0-600.60Fixed overhead3-804-808-60Selling & administration costs:Variable overhead1.001.00Fixed overhead2.901.003.90Total5-8012.50The selling price of the product, throughout the period, was K14.50 per unit. 11,400units of the product were manufactured in the period during which 11,200 units weresold. There were no finished goods at the beginning of the period. The fixed productionoverhead costs per unit listed above are based on the production units for the periodand the fixed selling and administration overhead costs per unit are based on the salesunits.Required:

Marginal costing and absorption costing are two distinct approaches used in accounting to determine…

Answered: QUESTION THREE The following is a list…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 13MC: Activity-based costing systems: A. use a single predetermined overhead rate based on machine hours...

See similar textbooks

Similar questions

XYZ Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount M XY Number of Production setups $ 82,000 8 12 setups Material handling Number of parts 48,000 56 24 Packaging costs Number of units 130,000 80,000 50,000 $ 260,000
Using the attached chart The overhead cost per unit of Product A under activity-based costing is what?
QUESTION 59 Cost AccountingChoose the answer from the choices
Question 4: Match Set A with Set B Set A Set B A. Allocate indirect and overhead costs to unit of products based on what actually used. 1. MOOP costing B. Where costs vary by machine, operation, department, or some other overhead costs. 2. Depreciation C. Start once manufacturing operations, tooling, set-up time and cycle time are estimated. 3. Operation costing 4. PHC costing D. Allocate an amount of money over the recovery life of asset. E. Estimate costs based on future and actual expenditure. 5. ABC costing Set A 1 3 4 5 Set B Your choice
[The following information applies to the questions displayed below.) The first production department of Stone Incorporated reports the following for April. Direct Materials Conversion Percent Units Complete Percent Complete 35% Beginning work in process inventory Units started this period. 76,000 65% 402,000 Completed and transferred out 350,000 Ending work in process inventory 98,000 85% 35% Exercise 20-9 (Algo) Weighted average: Cost per equivalent unit; costs assigned to output and inventory LO P1 The production department had the cost information below. Beginning work in process inventory Direct materials 5.180,444 45,559 Conversion $ 226,003 Costs added this period, Direct materials Conversion 1,278,951 845,186 Total costs to account for 2.124,137 $2,350,140 a. Compute cost per equivalent unit for both direct materials and conversion. (Round "Cost per EUP" to 2 decimal places.) b. Using the weighted average method, assign April's costs to the department's output-specifically,…
Subject: Accounting
Question 1 Trimake Limited makes three main products, using broadly the same production methods and equipment for each. A conventional product costing system is used at present, although an activity-based costing (ABC) system is being considered. Details of the three products for a typical period are: Product X Product Y Product Z Hours per unit Labour hours ½ 1½ 1 Product X Product Y Product Z Costs relating to setups Costs relating to machinery Costs relating to materials handling Costs relating to inspection Total production overhead Required: Machine unit 1½ 1 3 Direct labour costs £14 per hour and production overheads are absorbed on a machine-hour basis. The rate for the period is £28 per machine hour. a) You are required to calculate the cost per unit for each product using conventional methods. Further analysis shows that the total of production overheads can be divided as follows: Number of set-ups 75 115 480 670 The following activity volumes are associated with the product…
vishu subject-Accounting
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs. Products Product 540X Product 137Y Product 2495 Sales Revenue $208,000 155,000 92.000 Total Costs Traditional $54,000 48,000 23.000 ABC $49,000 30,000 46,000
-S average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $7.10 $4.10 $ 1.60 $ 5.10 $ 3.60 $ 2.60 1. Total amount of product cost 2. Total amount of period cost incurred 3. Total amount of product cost 4. Total amount of period cost $ 1.10 $ 0.60 Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-- Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (For all…
In the variable costing income statement, how are the fixed manufacturing costs reported, and how are the fixed selling and administrative expenses reported?
Caseys Kitchens three cost pools and overhead estimates are as follows: Compare the overhead allocation using: A. The traditional allocation method B. The activity based costing method (Hint: the traditional method uses machine hours as the allocation base.)

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Accounting (Text Only)

Accounting

ISBN:

9781285743615

Author:

Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:

Cengage Learning

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Accounting (Text Only)

Accounting

ISBN:

9781285743615

Author:

Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:

Cengage Learning

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Accounting Information Systems

Finance

ISBN:

9781337552127

Author:

Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill

Publisher:

Cengage Learning

Financial & Managerial Accounting

Accounting

ISBN:

9781337119207

Author:

Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS