Required: Compute each of the following amounts. 1. The number of pounds of pineapple that result as output for pineapple slices, crushed pineapple, pineapple juice, and animal feed. 2. The net realizable value at the split-off point of the three main products. 3. The amount of the cost of the Cutting Department allocated to each of the three main products.
Q: two products used in the heavy equipment industry. Both products require manufacturing operations in…
A: The question is related to limiting factor i.e. labor hours. As per the given data there are two…
Q: Departmental information for the four departments at Samoa Industries is provided below. Total…
A: Under the Direct allocation method, the cost of service departments are directly allocated to the…
Q: The Merchant Manufacturing Company has two service departments - purchasing and maintenance, and two…
A: Overhead costs from service departments to operating departments may be allocated using the direct…
Q: The following departmental information is for the four departments at Samoa Industries. Number of…
A: The objective of the question is to determine the proportional usage of the Janitorial Department by…
Q: Learned Corporation has provided the following information: Direct materials. Direct labor Variable…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: Snavely, Incorporated, manufactures and sells two products: Product E1 and Product A7. Data…
A: Total overhead applied includes the overhead cost related to labour, machine setups and order size…
Q: A company manufactures and markets three products that are made from the same set of machines.…
A: The following computations are done for the company manufacturing products A, B and C.
Q: Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square…
A: Percentage of usage of Janitorial Department by Cutting Department: = Square feet occupied by…
Q: partmental information for the four departments at Samoa Industries is provided below. Total…
A: Step 1: a. Compute the percentage usage of the J department by cutting department using direct…
Q: Assume a company's activity-based costing system includes three activities with the following…
A: Service Revenue from Customer B $1,230 Less: Allocated Costs Travel (250 miles * $2) $500…
Q: ring overhead sts (per unit): bor terials ring overhead units produced per quarter 4,500,000 19 22…
A: Prime Cost Direct material plus direct labourContribution margin is selling price less variable…
Q: Support Department 1 Department 2 Support Production Production Department 1 Department 2 Number of…
A: In the sequential allocation method the cost of each service dept is allocated one department at a…
Q: A firm has two service departments (A and B) and two production departments (X and Y). The firm…
A: Department Y's total cost=Department Y's cost before allocation+Department A's cost to Department…
Q: Departmental information for the four departments at Samoa Industries is provided below. Total…
A: Calculation of Cutting department and Assembly department in percentage is as below-
Q: Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has…
A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…
Q: Customer profitability analysis allows managers to do which of the following: a. Identify the…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Snowy River Stallion Inc. produces horse and rancher equipment. Costs from Support Department 1 are…
A: Under the sequential method of cost allocation, the cost of the first service department is…
Q: Required information Gable Company uses three activity pools. Each pool has a cost driver.…
A: Activity Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…
Q: Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C.…
A: The contribution margin is calculated as the difference between sales and variable costs. The…
Q: Feeley Bakery makes baked goods for grocery stores, and has three divisions: bread, cake, and…
A: Segment margin income statement is prepared to determine segmentwise operating income (loss). The…
Q: Rondeau, Incorporated, manufactures and sells two products: Product V9 and Product M6. Data…
A: Indirect costs incurred while producing goods or services. Overhead costs cannot be directly…
Q: Yalland Manufacturing Company makes two different products, M and N. The company’s two departments…
A: Direct costs are those costs that can be allocated directly to the product. Indirect costs are those…
Q: Computing indirect manufacturing costs per unit Darby Corp. Considering the use of activity-based…
A:
Q: Product-Costing Accuracy, Plantwide and Departmental Rates, ABCEscuha Company produces two type of…
A: Hi student, Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: These data are based on the processing operations of HDG Enterprises. Assume that process conversion…
A: Equivalent Units of Production: In process costing, when material used for beginning work in process…
Q: Required:1. Using the conventional approach, compute the number of cases of Rose and the number…
A: Activity Based Costing (ABC) involve the allocation of indirect costs such as salaries and utilities…
Q: Cost centers, profit centers, decentralization, transfer prices. Fenster Corporation manufactures…
A:
Q: Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square…
A: Service departments and production departments are two types of departments. Service departments…
Q: Johnston Corp. manufactures computer desks in its Syracuse, New York, plant. The company uses…
A: Costs of manufacturing include material costs as well as the costs of turning raw materials into…
Q: ssume that Kizzle's management allocates Maintenance costs based on the number of servicê calls.…
A: 2)i)Maintenance cost allocation: Janitorial = 16/80 x 5,000 = 1,000 Mixing = 40/80 x 5,000 = 2,500…
Q: Requ Gable Company uses three activity cost pools. Each pool has a cost driver. Information for…
A: Activity Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…
Q: For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago,…
A: Manufacturing costs;Manufacturing costs:Manufacturing costs refer to the cost incurred to…
Q: Gabriel Supermarkets (GS) operates at capacity and decides to apply ABC analysis to three product…
A: Activity-Based Costing (ABC) is a costing methodology that assigns overhead costs to specific…
Q: Departmental information for the four departments at Samoa Industries is provided below. Total…
A: Allocation of overheads: Allocation of overheads means to allocate the whole cost item into the cost…
Q: Fans Company has two service departments - product design and engineering support, and two…
A: Cost allocation is the process wherein the costs are identified and allocated to the appropriate…
Q: The cost of warehouse space is allocated to three inventories: raw materials, work - process, and…
A: The materials used in production as well as the commodities created that are available for sale are…
Q: Bruce Corporation makes four products in a single facility. These products have the following unit…
A: Optimum utilization of resourcesSometimes a business entity has limited resources, and it has huge…
Q: Required: 1. Compute the overhead cost per unit for each product by using a plantwide rate based on…
A: ACTIVITY BASED COSTING A powerful tool for measuring performance, Activity-Based Costing (ABC)…
Q: Weighted Average Method, Two-Department Analysis, Change inOutput Measure Healthway uses a…
A: The reports are shown as,
Q: Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each…
A: The ABC costing system refers to the activity-based costing system. It is a method of allocating…
Q: Computing absorption cost per unit and variable cost per unit Adamson, Inc. has the following cost…
A: Particulars 2000 units 2500 units 5000 units Direct material $41 $41 $41 Direct labor 57 57 57…
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 1 images
- Direct Labor wage rate is $ 30 per hour. a) Compute total cost per unit (for lambda and gamma) using traditional plantwide approach. (round your numbers) b) Compute total cost per unit (for lambda and gamma) using activity-based approach. (round your numbers)1. Compute the standard cost of each of the following inputs per pot: direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead. 2. Determine the standard cost of one flower pot.An activity based costing system is being considered at Evelia, nv to assign products overhead costs; these overhead costs are currently assigned strictly by number of units produced. First, the two overhead costs of Rent expense and Insurance expense would be allocated to three activity cost pools - Finishing, Sanding, and Other - based on resource consumption. The information used to perform these allocations is below: Overhead Costs: Rent expense: $2,000,000 Insurance expense: $1,650,000 Distribution of Resource Consumption across Activity Cost Pools: Overhead Cost Activity Cost Pools Finishing Sanding Other Rent expense 0.45 0.25 0.30 Insurance expense 0.20 0.35 0.45 In the second stage, Finishing costs would be assigned to products using direct labor hours and Sanding costs would be assigned to products using the number of machine hours. The costs in the Other activity pool would not be assigned to products. Activity data for the company's two products is as…
- Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Units completed Units in EWIP X Fraction complete (36,000 X 60%) Equivalent units of output June's costs to account for are as follows: BWIP (10,000 units, 80% complete) Materials Conversion costs Total Required: 91,000 21,600 112,600 $50,000 156,000 95,000 $301,000 1. Calculate the unit cost for June using the weighted average method. Round your answer to the nearest cent.Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead. Unit product cost Additional data concerning these products are listed below. Multiple Choice Product C Product B Product D Product A Products A B C D $17.20 $ 21.10 $ 14.10 $ 16.80 19.20 22.60 17.00 11.00 6.00 7.20 29.10 16.00 $71.50 A 2.25 $ 86.70 $ 2.95 4,600 9.70 16.10 $66.90 $ 56.90 Products Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units. The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines. Direct labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines? Note: Round your intermediate calculations to 2 decimal places. B 1.30 $ 79.10 $ 3.65 3,600 C 0.85 $ 75.90 $4.40 3,600Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment depreciation and supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $ 91,000 Supervisory expense $ 12,300 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.60 0.30 0.10 Supervisory expense 0.60 0.20 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity: MHs (Machining) Orders (Order Filling) Product W1 6,050 198 Product M0 21,800 999 Total…
- 3. A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $59,715 and the cost drivers for Product 1 is 226 and 377 for Product 2. The assembling activity pool has estimated costs of $32,051 and the cost drivers for Product 1 is 418 and 272 for Product 2. Direct labor hours for Product 1 is 50,000 and 45,000 for Product 2. What is the manufacturing overhead rate to be used under activity based costing for the assembly pool? Round your final answer to two decimal places and do not write a dollar sign.Sequential (Step) Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Number of employees Square footage Human Resources General Factory Direct costs Allocate: General Factory Support Departments Human Resources Human Resources Total after allocation $150,000 1,500 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to six significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. Human…FUT manufactures two products.. Both products require manufacturing operations in two departments: Product 1 2 Profit/Unit $25 $20 Labour Hours Dept. A 6 8 Labour Hours Dept. B 12 10 For the coming production period, FUT has available 900 hours of labor that can be allocated to either of the two departments. Find the production plan and labor allocation (hours assigned in each department) that will maximize profit. (Use Excel Solver)
- Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 24,500 units? b. What is the total indirect manufacturing cost incurred to make 24,500 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 24,500 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? 3. Assume the cost object is the company’s various sales representatives. Furthermore, assume that the company spent $90,650 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives’ compensation. a. When the company sells 24,500 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When…Plantwide versus Departmental Rates, Product-Costing Accuracy: Activity-Based Costing Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A’s production is much more labor-intensive than that of Model B. Model B is also the more popular of the two speakers. The following data havebeen gathered for the two products: Required:1. Compute the overhead cost per unit for each product by using a plantwide rate based on direct labor hours. (Note: Round to two decimal places.)2. Compute the overhead cost per unit for each product by using ABC. (Note: Round rates and unit overhead cost to two decimal places.)3. Suppose that Ramsey decides to use departmental overhead rates. There are two departments: Department 1 (machine intensive) with a rate of $3.50 per machine hour and Department 2 (labor intensive) with a rate of $0.90 per direct labor hour. The consumption of these two drivers is as follows: Compute the overhead cost per unit…The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 3,800 sets per year. Annual cost data at full capacity follow: Direct labor Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, administrative office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building Administrative office supplies (billing) Administrative office salaries Direct materials used (wood, bolts, etc.) Utilities, factory $ 89,000 $ 103,000 $70,000 $ 23,000 $ 65,000 $ 6,000 $ 2,000 $ 17,000 $ 18,000 $ 106,000 $ 5,000 $ 111,000 $ 426,000 $ 46,000 Required: 1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as variable or fixed with respect to the number of units produced and sold; and second, as a selling…