Real Cool produces air conditioners in two departments: Assembly and Finishing. Budgeted information follows. Department Assembly Finishing Budgeted Cost Allocation Base $ 308,000 Machine hours 24,000 Direct labor hours Additional production information for two models of its air conditioners follows. Model A $ 570 Per unit Selling price Direct materials Direct labor 185 235 Model T $ 540 Units produced Assembly machine hours per unit Finishing direct labor hours per unit 175 245 Model A 500 2 MH 3 DLH Budgeted Usage 7,700 machine hours 4,800 direct labor hours Model T 600 3 MH 4 DLH 1a. Compute departmental overhead rates and determine overhead cost per unit for each model. 1b. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs. 2. Compute the total product cost per unit for each model. 3. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Please do not give solution in image format thanku
![Real Cool produces air conditioners in two departments: Assembly and Finishing. Budgeted information follows.
Department
Assembly
Finishing
Budgeted Cost
$ 308,000
Allocation Base
Machine hours
Direct labor hours
24,000
Additional production information for two models of its air conditioners follows.
Model T
$ 540
Per unit
Selling price
Direct materials
Direct labor
175
245
Units produced
Assembly machine hours per unit
Finishing direct labor hours per unit
Model A
$ 570
185
235
Req 1A
Department
Req 18
1a. Compute departmental overhead rates and determine overhead cost per unit for each model.
1b. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs.
2. Compute the total product cost per unit for each model.
3. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).
Complete this question by entering your answers in the tabs below.
Departmental
Overhead Rate
Model A
500
Req 2
Req 3
Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs.
Note: Round "Hours per unit" to one decimal place.
2 MH
3 DLH
Model A
Hours per Unit
Budgeted Usage
7,700 machine hours
4,800 direct labor hours
Model T
600
3 MH
4 DLH
Overhead
Allocated
Model T
Hours per Unit
Overhead
Allocated](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa9c9751d-f990-49e9-9270-85e128c3be71%2Fff4a69bb-97bf-4164-ba93-9bf377c7fe42%2Flb6cnuh_processed.jpeg&w=3840&q=75)
![neai Cuor produces air conditioners in two departments: Assembly and Finishing. Budgeted information follows.
Department
Assembly
Finishing
Budgeted Cost
$308,000
24,000
Allocation Base
Machine hours
Direct labor hours
Additional production information for two models of its air conditioners follows.
Per unit
Selling price
Direct materials:
Direct labor
Units produced
Assembly machine hours per unit
Finishing direct labor hours per unit
Reg 1A
Department
Model A
$ 570
185
235
Reg 1B
Req 1A
1a. Compute departmental overhead rates and determine overhead cost per unit for each model.
1b. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs.
2. Compute the total product cost per unit for each model.
3. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).
Complete this question by entering your answers in the tabs below.
Department
Departmental
Overhead Rate
Assembly
Finishing
Totals
Req 2
Req 18
Model T
$ 540
Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs.
Note: Round "Hours per unit" to one decimal place.
$
175
245
Departmental
Overhead Rate
Model A
Hours per Unit
Model A
500
Req 3
40
Req 2
5
1a. Compute departmental overhead rates and determine overhead cost per unit for each model.
1b. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs.
2. Compute the total product cost per unit for each model.
3. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).
Complete this question by entering your answers in the tabs below.
2 MH
3 DLH
Overhead
Allocated
Budgeted Usage
7,700 machine hours
4,800 direct labor hours
Req 3
Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs.
Note: Round "Hours per unit" to one decimal place.
Model A
Hours per Unit
80 $
15
Model T
600
3 MH
4 DLH
$
< Req 1A
Overhead
Allocated
Hours per Unit
Model T
2
3
5
Overhead
Allocated
Model T
Hours per Unit
Overhead
Allocated
120.0 $
20.0
Reg 2 >
$
3
7](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa9c9751d-f990-49e9-9270-85e128c3be71%2Fff4a69bb-97bf-4164-ba93-9bf377c7fe42%2Forkoav4_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)