Silven Company has identified the following overhead activities, costs, and activity drivers for thecoming year:ExpectedCostActivityDriverActivityActivityCapacitySetting upequipment$147,000Number ofsetups120OrderingmaterialsNumber oforders26,4001,200MachiningMachinehours101,50010,150Receiving23,100Receivinghours1,155Silven produces two models of cell phones with the following expected activity demands:ModelModelYUnitscompleted5,40010,800Number8040of setupsNumberof orders400800Machinehours5,8004,350770Receivinghours385Required:1. Determine the total overhead assigned to each product using the four activity drivers.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 inproportion to their costs. Round interim calculations to two decimal places and round your finalanswers to the nearest dollar.3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimalplaces.

Name: Silven Company has identified the following overhead activities, cost
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Description: Silven Company has identified the following overhead activities, costs, and activity drivers for thecoming year:ExpectedCostActivityDriverActivityActivityCapacitySetting upequipment$147,000Number ofsetups120OrderingmaterialsNumber oforders26,4001,20

Manufacturing overhead: It is the indirect cost incurred as a part of manufacturing the products.…

Business

Accounting

Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $147,000 Number of setups 120 Ordering materials 26,400 Number of orders 1,200 Machining Machine hours 101,500 10,150 Receiving 23,100 Receiving hours 1,155 Silven produces two models of cell phones with the following expected activity demands: Model Y Model Units 5,400 10,800 completed Number of setups 80 40 Number of orders 400 800 Machine hours 5,800 4,350 Receiving hours 385 770 Required: 1. Determine the total overhead assigned to each product using the four activity drivers. 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 to their costs. Round interim calculations to two decimal places and round your final answers to the nearest dollar. 3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places.

Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $147,000 Number of setups 120 Ordering materials 26,400 Number of orders 1,200 Machining Machine hours 101,500 10,150 Receiving 23,100 Receiving hours 1,155 Silven produces two models of cell phones with the following expected activity demands: Model Y Model Units 5,400 10,800 completed Number of setups 80 40 Number of orders 400 800 Machine hours 5,800 4,350 Receiving hours 385 770 Required: 1. Determine the total overhead assigned to each product using the four activity drivers. 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 to their costs. Round interim calculations to two decimal places and round your final answers to the nearest dollar. 3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places.

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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