Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Setting up equipment $138,000 Number of setups Ordering materials 10,200 Number of orders Machining 92,400 Machine hours Receiving 18,480 Receiving hours Silven produces two models of cell phones with the following expected activity demands: Model X Model Y 5,000 10,000 80 40 200 400 6,600 4,950 385 770 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Activity Capacity 120 600 11,550 1,155

Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Setting up equipment $138,000 Number of setups Ordering materials 10,200 Number of orders Machining 92,400 Machine hours Receiving 18,480 Receiving hours Silven produces two models of cell phones with the following expected activity demands: Model X Model Y 5,000 10,000 80 40 200 400 6,600 4,950 385 770 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Activity Capacity 120 600 11,550 1,155

Name: 2. Determine the total overhead assigned to each model using the two
Uploaded: 2024-03-20T06:32:49.000Z
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Description: 2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion totheir costs. Round interim calculati

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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Activity-Based Costing Slack Corporation has the following predicted indirect costs and cost drivers for the year for the given activity cost pools: Maintenance Materials handling Machine setups Inspections Machine hours Material moves Machine setups Inspection hours Fabrication Department Finishing Department Cost Driver $50,000 30,000 70,000 $40,000 Machine hours 15,000 Material moves 5,000 Machine setups 25,000 Inspection hours $85,000 The following activity predictions were also made for the year. Fabrication Department Finishing Department Direct materials cost Direct labor cost Machine hours (Fabrication) Machine hours (Finishing) Materials moves Machine setups Inspection hours It is assumed that the cost per unit of activity for a given activity does not vary between departments. Slack's president, Charles Slack, is trying to evaluate the company's product mix strategy regardin two of its five product models, ZX300 and SL500. The company has been using a company-wide overhead…
Activity-Based Costing: Factory Overhead Costs NOORGOGUO The total factory overhead for Bardot Marine Company is budgeted for the year at $1,205,100, divided into four activities: fabrication, $528,000; assembly, $192,000; setup, $262,350; and inspection, $222,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Fabrication 8,250 dih 24,750 33,000 dih Assembly 24,000 dih 8,000 32,000 din 495 setups Each product is budgeted for 6,000 units of production for the year. a. Determine the activity rates for each activity. Fabrication per direct labor hour Assembly per direct labor hour Setup per setup. Inspection per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat Bass boat Speedboat Bass boat per unit per unit Setup 59 setups 436 Inspection 103 inspections 722 825 inspections
The manufacturing plant of Carilla Ltd. specializes in crafting specialized pieces for carnival. With a monthly production capacity of 15,000 pieces, the company currently manufactures and sells 11,000 pieces per month. Typically priced at $200 per piece, the company's cost breakdown for the ongoing production level is outlined below:  Variable costs that vary with number of units produced Direct materials $ 440,000 Direct manufacturing labor 495,000 Variable costs (for setups, materials handling, quality control, etc.) that vary with number of batches, 220 batches * $500 per batch 110,000  Fixed Costs Fixed manufacturing costs 300,000 Fixed marketing costs 200,000 Total costs $1,545,000 Carilla has just received a special one-time-only order for 4,000 pieces at $150 per piece. Accepting the special order would not affect the company’s regular business. Carilla makes pieces for its existing customers in batch sizes of 50 pieces (220 batches 50 pieces per batch = 11,000…
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Alpha Products manufactures 30,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials £ 3.60Direct labour 10.00Variable overhead 2.40Fixed overhead 9.00Total cost per part £ 25.00 An outside supplier has offered to sell 30,000 units of part S–6 each year to AlphaProducts for £21 per part. If Alpha Products accepts this offer, the facilities now being used to manufacture part S–6 could be rented to another company at an annual rental of £80,000. However, Alpha Products has determined that two-thirds of the fixed overhead being applied to part S-6 would continue even if part S–6 were purchased from the outside supplier Required: (a) Prepare computations to show the net advantage or disadvantage of accepting the outside supplier’s offer. (b) Define the following terms: relevant cost and opportunity cost. (c) ‘If a product line is generating a loss, then that’s pretty good evidence that the…
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< Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Expected Cost Activity Driver Activity Capacity Number of setups Number of orders Activity Setting up equipment Ordering costs Machine costs Receiving Receiving hours Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Receiving hours $464,550 Required: 336,300 747,000 424,200 Model A Machine hours $604,000 498,000 17,000 5,800 410 Model B $804,000 456,000 8,700 1,500 6,200 23,500 3,800 The company's normal activity is 7,300 direct labor hours. 160 11,500 18,000 6,300 570 17,700 41,500 10,100 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent.
Summer Enterprises produces "Breeze" and "Storm" cooling fans. Selected data related to each product is as follows: Breeze Storm Sales price per unit $200 $300 Direct materials per unit $60 $70 Direct labour per unit $30 $35 Variable overhead per unit $10 $15 Direct labour hours per unit 2 There is a maximum of 24,000 direct labour hours available each year.
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