Sheridan Company manufactures two products, Mini A and Maxi B. Sheridan's overhead costs consist of setting up machines- $840000; machining- $1960000; and inspecting- $570000. Information on the two products is: Mini A Maxi B Direct labour hours 16000 21000 Machine setups 700 500 Machine hours 27000 29000 Inspections 800 700 Overhead applied to Mini A using activity-based costing is ○ $1624821. ○ $1739000. $1457297. ○ $1965833.
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of…
A: Overhead costs allocated to Regular Product = Labor hours consumed in Regular product X…
Q: Primary Co. makes two products, benches, and chairs. Several activities are required to produce each…
A: Total cost of production means the total amount spent on the making of the goods. It includes the…
Q: Coronado Company manufactures two products, Mini A and Maxi B. Coronado's overhead costs consist of…
A: Activity Based Costing -Activity Based Costing Is a Method Of Assigning Indirect And Overhead Costs…
Q: Y Company uses activity-based costing for its product Delux and Melux. The total estimated annual…
A: Activity rate = RO 530,000 / 5000 set ups Activity rate = RO 106 per set up
Q: Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmerman’s overhead costs…
A: Overheads are considered as fixed and common expenses that should be allocated to the products on…
Q: Johnstone Company manufactures two products, Board 12 and Case 165. Johnstone's overhead costs…
A: The pre-determined overhead rate is calculated as the estimated overhead costs divided by the…
Q: Swifty Company manufactures two products, Board 12 and Case 165. Swifty's overhead costs consist of…
A: ABC is a costing methodology used in managerial accounting to allocate costs to products, services,…
Q: Bangor Company manufactures two products, velvesto and Fondant. Banger has estimated overtead costs…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Valencia Company manufactures two products. Product A has 800 units produced, require 200 material…
A: Cost allocated to A = P2,000,000 x 200/1000 = P400,000 Coat allocated to B = P2,000,000 x 800/1000 =…
Q: Tulip Company produces two products, T and U. The indirect labor costs include the following two…
A: Plantwide overhead rate is used to distribute the manufacturing cost on the basis of direct labor…
Q: Which of the following statements concerning the unit product cost of Product S9 is true? (Round…
A: The correct option with all necessary working note are as follows
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of…
A: Using traditional costing, the total overhead cost is divided using the direct labor hours. In…
Q: SIMPly Power Inc., manufactures and sells two products: Product V9 and Product B1. Data concerning…
A: ACTIVITY BASED COSTING Activity Based Costing is a Powerful tool for measuring performance.…
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of…
A: First, compute the total estimated overhead as shown below: Total estimated overhead = $1,200,000 +…
Q: Vattes, Incorporated, manufactures and sells two products: Product 15 and Product U1. Data…
A: From the given information, Total overhead = $268,698+ $37,324+ $633,895 = $939,917 Overhead applied…
Q: Bonita Company manufactures two products, Mini A and Maxi B. Bonita's overhead costs consist of…
A: Activity based costing means one of the costing system in which all costs and expenses are allocated…
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of…
A: Number of machine Hours : 10000+30000= 40000 Overhead rate for machining department = Overhead cost…
Q: P Company produces three types of products- product A, product B and product C. Product A requires…
A: The overhead is applied to the production on the basis of different activities performed during the…
Q: Overhead applied to Supreme using activity-based costing is $3638000. $2040000. $1462000. $3060000.
A: Machining overhead is allocated based on the Machine hours. Assembling overhead is allocated based…
Q: Lily Company manufactures two products, Board 12 and Case 165. Lily's overhead costs consist of…
A: TRADITIONAL COSTING SYSTEM Traditional System cost analysis is Done by Product. Under Traditional…
Q: amount of overheads allocated to product Apex
A: Estimated annual overhead cost for set up (A) RO 440,000 Number of set ups (B) 4,000 Overhead…
Q: abor hours 10000 15000 Machine hours 10000 30000 Number of parts 90000 160000 Overhead applied to…
A: Predetermined overhead Rate =Total overhead cost/ Total Direct labor hours…
Q: X-O-Tron Mechoman Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000…
A: In the given question the overhead applied to using activity is based on costing. Hence, setting of…
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of…
A: Activity-based Costing is a method of assigning cost of each activity present in the production…
Q: Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of…
A: Overheads are company costs associated with the day-to-day operation of the firm. Overhead costs…
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of…
A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…
Q: One of Waterway Company's activity cost pools is machine setups with estimated overhead of $240000.…
A: Lets understand the basics.There are two costing technique are generally used for allocating…
Q: Overhead applied to Maxi B using activity-based costing is $1324000. O $1660400. O $1690400. O…
A: Introduction:- ABC costing means Activity based costing. It is used to allocation of manufacturing…
Q: P Company produces three types of products- product A, product B and product C. Product A requires…
A: Overhead alludes to continuing company costs that are not directly related to the creation of goods…
Q: Ole Company manufactures two products, Product A and Product B. Currently, machine hours are used…
A:
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of…
A: To determine: Overhead applied to Regular using traditional costing using direct labor hours is…
Q: Vaughn Company manufactures two products, Mini A and Maxi B. Vaughn's overhead costs consist of…
A: The traditional method of overhead allocation is based on a predetermined overhead rate. The…
Q: Reliability Co. makes two products. Regular and Supreme. Overhead costs of machining is $2.000.000…
A: Activity-based costing is a method of assigning indirect costs to products and services by…
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The…
Q: The allocation rate per order using an ABC system is:
A: ABC Costing stands for Activity based costing. Which means that to allocate overhead cost individual…
Q: Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmerman’s overhead costs…
A: Activity-Based Costing: Activity-based costing is a costing technique that identifies all the…
Q: BDG Company manufactures two products (X and Y). The overhead costs (£100,000) have been divided…
A:
Step by step
Solved in 1 steps
- Stacks manufactures two different levels of hockey sticks: the Standard and the Slap Shot. The total overhead of $600,000 has traditionally been allocated by direct labor hours, with 400,000 hours for the Standard and 200.000 hours for the Slap Shot. After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $450.000 of overhead, with 30,000 hours used on the Standard product and 15,000 hours used on the Slap Shot product. It was also estimated that the inspection cost pool would have $150,000 of overhead, with 25,000 hours for the Standard and 5,000 hours for the Slap Shot. What is the overhead rate per product, under traditional and under ABC costing?Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?Fisico Company produces exercise bikes. One of its plants produces two versions: a standard model and a deluxe model. The deluxe model has a wider and sturdier base and a variety of electronic gadgets to help the exerciser monitor heartbeat, calories burned, distance traveled, etc. At the beginning of the year, the following data were prepared for this plant: Additionally, the following overhead activity costs are reported: Required: 1. Calculate the cost per unit for each product using direct labor hours to assign all overhead costs. 2. Calculate activity rates and determine the overhead cost per unit. Compare these costs with those calculated using the unit-based method. Which cost is the most accurate? Explain.
- Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
- The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC: The estimated overhead for the material cost pool is estimated as $12,500, and the estimate for the machine setup pool is $35,000. Calculate the allocation rate per unit of brass and per unit of gold using: A. The traditional allocation method B. The activity-based costing methodTri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total overhead of $300,000 has traditionally been allocated by direct labor hours, with 150.000 hours for the Standard and 50,000 hours for the Extreme. After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $200,000 of overhead, with 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product. k was also estimated that the setup cost pool would have $100000 of overhead, with 1,000 hours for the Standard and 1,500 hours for the Extreme. What is the overhead rate per product, under traditional and under ABC costing?
- Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?Lily Company manufactures two products, Board 12 and Case 165. Lily's overhead costs consist of setting up machines, $2600000; machining, $5900000; and inspecting. $1890000. Information on the two products and their estimated use of cost drivers is as follows: Direct labor hours Machine setups Machine hours Inspections Board 12 Case 165 15000 26560 O $3750000. O $4990000. O $5600500. O $6234000. 600 24000 800 400 26000 700 Overhead assigned to Board 12 using traditional costing using direct labor hours isConcord Company manufactures two products, Mini A and Maxi B. Concord's overhead costs consist of setting up machines- $860000; machining- $2020000; and inspecting- $570000. Information on the two products is: Direct labour hours Machine setups Machine hours Inspections Mini A Maxi B $1324000. $1660400. $1690400. O $2542105. 10000 600 24000 800 28000 400 26000 700 Overhead applied to Maxi B using activity-based costing is