Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools: Estimated Expected Activity Total 93,200 330 Overhead Cost Activity Cost Pools and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Xactive Pathbreaker $ 643,080 445,500 650,840 59,340 $1,798,760 25,200 215 68,000 115 1 1 2 1,800 6,800 8,600 Total manufacturing overhead cost Determine the activity rate for each of the four activity cost pools. 3. Using the activity rates and other data from the problem, determine the unit product cost of each product.

Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools: Estimated Expected Activity Total 93,200 330 Overhead Cost Activity Cost Pools and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Xactive Pathbreaker $ 643,080 445,500 650,840 59,340 $1,798,760 25,200 215 68,000 115 1 1 2 1,800 6,800 8,600 Total manufacturing overhead cost Determine the activity rate for each of the four activity cost pools. 3. Using the activity rates and other data from the problem, determine the unit product cost of each product.

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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Please help finding solution for this problem Required : (1) Predertmined overhead rate cutting and finishing department REquired : (2)Total Mafacturing cost White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labor-hours 8,800 62,000 Machine-hours 65,700 1,500 Total fixed manufacturing overhead cost $ 380,000 $ 489,000 Variable manufacturing overhead per machine-hour $ 2.00 — Variable manufacturing overhead per direct labor-hour — $ 4.75 Department Cutting Finishing Direct labor-hours 4 12 Machine-hours 90 4 Direct materials $ 720 $ 360 Direct labor…
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A company manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
MFCB Ltd uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Activity Cost Pool Total Cost (RM) Total Activity Cleaning 442,068 78,800 hours Job support 52,801 1,900 jobs Client support 9,170 350 clients Other 110,601 Not applicable Total 614,640 The expenses of idle capacity and organization-sustaining expenditures are included in the 'Other' activity cost pool. One particular client, DNO Ltd, requested 46 jobs during the year that required a total of 92 hours of housecleaning. For this service, the client was charged RM2,230. TASK: Compute the predetermined overhead rate if the company chooses cleaning hours as the allocation base.
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