Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advanced features. Data on the two phones is as follows: Blue Yellow Expected production 50,000 phones 150,000 phones Direct materials and Direct labour costs $25 $40 Ring Company's accountant prepares the following budget that she plans to use to prepare an activity based analysis the costs of Blue and Yellow: \table[[, Blue, Yellow, Budgeted Cost],[,,,], [ Equipment setup, 100 setups, 60 setups,$88,000 ง Required: 1. "Calculate the manufacturing overhead allocation rate for each activity using ABC 2. Calculate the cost of the Blue Phone." 3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone
Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advanced features. Data on the two phones is as follows: Blue Yellow Expected production 50,000 phones 150,000 phones Direct materials and Direct labour costs $25 $40 Ring Company's accountant prepares the following budget that she plans to use to prepare an activity based analysis the costs of Blue and Yellow: \table[[, Blue, Yellow, Budgeted Cost],[,,,], [ Equipment setup, 100 setups, 60 setups,$88,000 ง Required: 1. "Calculate the manufacturing overhead allocation rate for each activity using ABC 2. Calculate the cost of the Blue Phone." 3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advanced
features. Data on the two phones is as follows: Blue Yellow Expected production 50,000 phones 150,000 phones Direct
materials and Direct labour costs $25 $40 Ring Company's accountant prepares the following budget that she plans to
use to prepare an activity based analysis the costs of Blue and Yellow: \table[[, Blue, Yellow, Budgeted Cost],[,,,], [
Equipment setup, 100 setups, 60 setups,$88,000
ง
Required:
1. "Calculate the manufacturing overhead allocation rate for each activity using ABC
2. Calculate the cost of the Blue Phone."
3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbcacbc6e-260e-4fd7-96ea-9c47e26bddad%2Fd5b9296a-5ac2-4e63-aa92-9a186eef4da0%2Fa2c00gk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advanced
features. Data on the two phones is as follows: Blue Yellow Expected production 50,000 phones 150,000 phones Direct
materials and Direct labour costs $25 $40 Ring Company's accountant prepares the following budget that she plans to
use to prepare an activity based analysis the costs of Blue and Yellow: \table[[, Blue, Yellow, Budgeted Cost],[,,,], [
Equipment setup, 100 setups, 60 setups,$88,000
ง
Required:
1. "Calculate the manufacturing overhead allocation rate for each activity using ABC
2. Calculate the cost of the Blue Phone."
3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone
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