SavedHelpSavCH 07 iKlumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contfollowing six activity cost pools and activity rates:Activity Cost PoolSupporting direct laborMachine processingMachine setupsActivity Rates$6 per direct labor-hour$ 4 per machine-hour$ 50 per setup$ 90 per order$ 14 per shipment$ 840 per productProduction ordersShipmentsProduct sustainingActivity data have been supplied for the following two products:Total Expected ActivityK425M67Number of units produced per yearDirect labor-hours2002,00080500Machine-hoursMachine setupsProduction orders1001,500144ShipmentsProduct sustaining1101Required:How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?< Prev16 of 19Next >DELLF3prt schomeendF4F5F6 Product sustainingRequired:How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?Activity Cost PoolK425M67Supporting direct laborMachine processingMachine setupsProduction ordersShipmentsProduct sustainingTotal overhead cost0 $T.%24

Activity-based costing: Activity-based costing is the method of costing which is used to assign…

Answered: Required: How much total overhead cost…

Business

Accounting

Required: How much total overhead cost would be assigned to K425 and M67

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Unit standard cost is depicted by which of the following: Group of choices: SP x AQ SP x Normal…

A: Standard Unit Cost - It is used to determine the variance accounting. The standard unit cost is the…

Q: The number of equivalent units in work in process regarding direct materials and conversion costs:…

A: Equivalent units means the whole units on which the cost has been incurred For example: Direct…

Q: :To prepare manufacturing overhead budget, the first point to consider among the following is .a O…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: 18. Responsibility reports for cost centres include: Controllable Non-controllable costs costs а. No…

A: Responsibility accounting reports activities that are in control by the management.

Q: ! Required information [The following information applies to the questions displayed below.] Victory…

A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units are calculated by adding equivalent…

Q: Overheads applied are calculated by: a.OAR times the estimated cost driver activity b. Budgeted…

A: Overhead is applied on the actual cost driver at the rate based on the estimated overhead and…

Q: Which of the following best defines the allocation base Select one: O a. It is selected based on the…

A: SOLUTION- ALLOCATION BASE- IT IS A BASIS UPON WHICH AN ENTITY ALLOCATES ITS OVERHEAD COSTS. AN…

Q: 2. Compute both the direct material cost and the conversion cost per equivalent unit. Cost per…

A: Process Costing: Process Costing refers to the costing where the costs are assigned to the units of…

Q: The term given to units that represents the number of completed units that is equal, in terms of…

A: Equivelent units=Units×Percentage completion

Q: Knowledge Check 01 In the cost formula (Y = a +bX) that is used to estimate the total manufacturing…

A: In the cost formula (Y = a + bX) used to estimate total manufacturing overhead cost, the symbol "a"…

Q: What is the equation for Fixed MFG Over head, traceable? What is the equation for Fixed MFG…

A: For decision making we should consider relevant cost only. Sunk cost doesn't consider in decision…

Q: Traditionally indirect cost like overheads were distributed to end products on the assumption that…

A: Traditionally indirect cost like overheads were distributed to end products on the assumption that…

Q: Which of the following capacity levels has traditionally been used to compute the fixed overhead…

A: Answer:- Fixed overhead expenses:- Fixed overhead expenses are expenses that remain constant…

Q: Required: a. Calculate the cost per equivalent unit for direct materials and conversion costs. b.…

Q: Required: (Use five decimal places to compute for unit cost) . What are equivalent units of…

Q: Given the following information, choose the cost and activity that would be used as the high data…

A: Solution... Using the High low method for finding variable cost and the fixed costs the Highest…

Q: Which among the following cost encourage management to focus on life cycle costing? a. Maintenance…

A: Life cycle costing is a method of adding up all the cost related with an asset starting from its…

Q: What are the justifications for using practical capacity as the denominator volume when…

A: Fixed cost volume variance: The fixed cost volume variance is the difference between the budgeted…

Q: What is the total costs transferred from Department 2 to Department 3?

Q: Dengo Company makes a trail mix in two departments: Roasting and Blending. Direct materials are…

A: Direct materials refers to the tangible components that make up a product. Cost accounting uses the…

Q: What does it means when the Overhead rates in the direct method have a figure which is higher than…

A: Overheads: It refers to the business indirect expenses that are required to run a business activity.…

Q: Which of the following formulae is used to calculate the cost per equivalent unit of production…

A: Equivalent units of production = Fully and partially completed units expressed as , % of fully…

Q: Summary of material costs by key items (GFE etc; not just a $ ROM) for manufacturing electric b

A: Answer: Material costs are the cost that relates purely to the materials used in manufacturing any…

Q: Which of the following are used for calculating the standard overhead absorption rate? a. Per center…

A: Overhead are the indirect costs that are incurred for the production or manufacturing of products.…

Q: ASAP Kindly give a full explanation for each option why it is correct or why others are wrong 1…

A: Process costing is one of the important section of cost accounting, under which costs and expenses…

Q: The four steps necessary to complete a cost of production report in a process cost system are 1.…

A: The correct order of steps is 1.Determine the units to be assigned costs 2.Compute equivalent units…

Q: Based on the diagram, which represents the EOQ model.Which line segment represents the length of…

Q: 46.) Given the following information, choose the cost and activity that would be used as the high…

A: High low method is one of the cost estimation method which is being used in business. Under this…

Q: Using Direct Method, how much service costs will be allocated to P1? 2. Using Direct Method, how…

A: Honor Code- Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: The predetermined overhead rate is: Select one: O a. 60 O b.5 O c 20 O d. 1.2 O e. None of the…

A: Predetermined overhead rate = Estimated manufacturing overhead/ Estimated machine hours In this…

Q: The cost that can be directly identified with a cost unit/centre and can be allocated to that cost…

A: Cost of production = Direct manufacturing costs + Indirect manufacturing costs Indirect costs =…

Q: Indirect material, pounds per unit 0.15 Indirect material, cost per pound $2 Indirect labor hours 1…

A: solution: A flexible budget is a budget that is flexible for volume or level of activity. This is…

Q: how was the fixed cost calculated cost in the question it only said 55000

A: Separate calculation for fixed cost is given below,

Q: 33-is the future cost flow that will be incurred anyway whatever the decision is taken now on the…

A: Committed cost means the cost which the company has already made the commitment and it is the…

Q: n fixed overhead applied to work in process 3600

A: Standard fixed overhead applied is the standard direct hours available into standard fixed overhead…

Q: Differences between fixed overhead and fixed cost. Like if im running a resturants, give me a…

A: Fixed Overhead Fixed overhead refers to the indirect costs or expenses that remain relatively…

Q: What is the rxample of activity based costing?

A: The term "activity-based costing," also referred to as "ABC," describes a technique for calculating…

Q: Describe how a single plantwide overhead allocation rate is used.

A: Cost: It refers to the economic value incurred by a company to produce a product or a service.

Q: Required information 21 3 Data 4. Beginning work in process inventory: Units in process 200 6.…

A: In this question method of calculation is not given ( FIFO or Weighted Average ) So we calculate…

Q: Applied overhead consists of which of the following? a. actual activity times predetermined…

A: Predetermined overhead rate = Estimated overhead / estimated activity

Q: Which one of the following is the right formula to calculate the predetermined overhead rate? Select…

A: Unit-level product costing is used to allocate the manufacturing costs to each product. It is…

Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Saved
Help
Sav
CH 07 i
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system cont
following six activity cost pools and activity rates:
Activity Cost Pool
Supporting direct labor
Machine processing
Machine setups
Activity Rates
$6 per direct labor-hour
$ 4 per machine-hour
$ 50 per setup
$ 90 per order
$ 14 per shipment
$ 840 per product
Production orders
Shipments
Product sustaining
Activity data have been supplied for the following two products:
Total Expected Activity
K425
M67
Number of units produced per year
Direct labor-hours
200
2,000
80
500
Machine-hours
Machine setups
Production orders
100
1,500
1
4
4
Shipments
Product sustaining
1
10
1
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
< Prev
16 of 19
Next >
DELL
F3
prt sc
home
end
F4
F5
F6

Product sustaining
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
Activity Cost Pool
K425
M67
Supporting direct labor
Machine processing
Machine setups
Production orders
Shipments
Product sustaining
Total overhead cost
0 $
T.
%24

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

4.1 Determined the correct formula to calculate the predetermined overhead absorption rate (OAR). Budgeted total overhead divided by actual total number of units of absorption base Budgeted total overhead divided by budgeted total number of units of absorption base Actual total overhead divided by actual total number of units of absorption base Actual total overhead divided by budgeted total number of units of absorption base
7. How is direct material cost per equivalent unit calculated?
27) Which among the following cost encourage management to focus on life cycle costing? a. All the options listed b. Maintenance costs c. Repair costs d. Warranty costs
Dengo Company makes a trail mix in two departments: Roasting and Blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. October data for the Roasting department follow. Beginning work in process inventory Units started and completed Units completed and transferred out Ending work in process inventory Beginning work in process inventory Costs added this period Direct materials. Conversion Total costs to account for Units 4,400 20, 600 25,000 3,800 $314, 760 1,374,948 Direct Materials Conversion Percent Percent Complete Complete 100% 30% 100% $ 124,790 1,689, 708 $ 1,814, 498 70%
Which of the following cost and cost allocation base have a stronger cause and effect relationship? A) administration costs and cubic feet B) setup costs and square feet C) quality control costs and the number of inspections D) machine maintenance and setup hours
Which of the following descriptions could be applied to the IT costs in question four? ( previous question) a. Afixedproductionexpenseb. Asemi-variableadministrationoverhead c. A variable direct research expensed. A mixed direct labour distribution cost
1 (b) Explain briefly the following terms: Discrete and continuous units Equivalent units Scrap Batch costing.
Classify the different costs as unit, batch, product, or facility. Answers (unit, batch, product, or facility) may be used more than once and some answers may not be used at all. Research and development Electricity Building security costs Quality control Design costs
A direct material standard cost is? The cost of direct materials that should be incurred to produce one unit of output or product. The cost of all materials and supplies used to produce one unit of output or product. The price that should be spent to purchase each unit of direct material for production. The amount of direct materials that should be used to produce one unit of output or product.
what is The weighted average method when it comes to allocating joint costs
Q.3.4 Briefly discuss the following concepts. Your discussion should include reference as to how it is determined: Actual manufacturing overhead costs. Budgeted manufacturing overhead costs. Allocated or applied manufacturing overhead costs. ●