Required informationChan Company identified the following budgeted data for this year. The company manufactures two types of scooters:standard and fast.ActivityHandling materialsQuality inspectionPurchasingTotalBudgeted Overhead Cost$ 625,00090,00025,000$ 740,000Budgeted Activity100,000 parts1,500 inspections1,000 ordersCompute an overhead activity rate for each activity assuming the company uses activity-based costing.Note: Round your answers to 2 decimal places.ActivityBudgeted CostBudgeted Activity UsageHandling materials$625,000Quality inspection90,000Purchasing25,000$740,000Activity Rateper orderper orderper order

Activity-based costing (ABC) is a costing method that identifies activities in an organization and…

Answered: Required information Chan Company…

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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Vaibhav Subject - Accounting
Please solve both a and b questions
Mission Company is preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the information provided below (CMA adapted) Units produced Material moves per product line. Direct labor-hours per product line Budgeted material handling costs: $644,000 Wall Mirrors Specialty Windows 220 20 5 1,100 60 1,200 Under a traditional costing system that allocates overhead on the basis of direct labor-hours, the materials handling costs allocated to one unit of Specialty Windows would be Multiple Choice O $16.800 $54,900 $14,000 $22.700
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Vikrambahi
Computing product costs in an activity-based costing system Franklin, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers hate identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 2018 and their allocation bases are as follows Franklin expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 4,000 parts, require 10 setups, and consume 1,000 hours of finishing time. Requirements Compute the predetermined overhead allocation rate for each activity. Compute the expected indirect manufacturing cost of each bumper.
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.40q Indirect labor $4,000 + $1.40q Utilities $5,300 + $0.30q Supplies $1,600 + $0.10q Equipment depreciation $18,500 + $3.00q Factory rent $8,200 Property taxes $2,500 Factory administration $13,600 + $0.60q The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 70,480 Indirect labor $ 9,340 Utilities $ 7,010 Supplies $ 2,250 Equipment depreciation $ 31,100 Factory rent $ 8,600 Property taxes $ 2,500 Factory…
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.30q $4,300 +$1.50g $5,300 +$0.40g $1.400+ $0.30q $18,200+ $2.70g $8,400 $13,800+ $0.60g $2,600 The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Direct labor Actual Cost Incurred in March $ 66,780 Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: $ 9,780 $ 7,370 $ 2,870 $ 29,000 $ 8.800 $ 2,600 $ 15,550 1. Prepare the Production…
Razmon's Jewelers has accumulated the following budgeted overhead information (dollar amounts may include both fixed and variable costs). Maintenance Depreciation Manager's salary Indirect supplies Utilities Other Direct Labor Hours 2,000 hours 3,000 hours $12,000 $17,000 8,000 8,000 45,000 45,000 3,200 4,700 1,000 1,200 8,500 9,000 Use this information to create the overhead budget for 2,800 direct labor employee hours. Answer is complete but not entirely correct. Budgeted Overhead Maintenance 5 × Depreciation $ 8,000 Manager's salary $ 45,000 Indirect supplies $ 2 × Utilities $ 1,200x Other $ 1
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Company AA has 6 standard products from stainless steel and brass. The company’s most popular product is Product XX The following are Product XX's data for next year budget: Activity Cost Driver Cost Driver Volume/year Cost Pool (RM) Purchasing Purchase Orders 1,500 75,000 Setting Batches Produced 2,800 112,000 Material Handling Material Movements 8,000 96,000 Inspection Batches Produced 2,800 70,000 Machining Cost Machine Hours 50,000 150,000 Purchase Orders 25 Output 15,000 units Production Batch Size 100 units Material movement per batch 6 Machine hour per unit 0.1 Calculate: a) Calculate the budgeted overhead costs using activity-based costing principles b) Calculate the budgeted overhead costs using absorption costing (absorb overhead using machine hours)
subject:accounting

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