Simmons, Incorporated's traditional costing system uses a plantwide predetermined overhead rate based on direct labor-hours (DLHS).The company's estimated total manufacturing overhead is $1,632,986 and estimated total direct labor-hours for the year is 30,220.Data about its only two products, A and B, as well as data pertaining to its proposed activity-based absorption costing system appearsbelow.Product AProduct B$ 63.30$ 27.00Direct materials per unitDirect labor per unitDirect labor-hours per unitAnnual production (units)$ 31.80$ 10.000.201.0045,60021,100EstimatedActivities and Activity MeasuresSupporting direct labor (DLHS)Setting up machines (setups)Parts administration (part types)Overhead Cost$ 695,060551,702386,224Total$ 1,632,986Expected ActivityProduct AProduct BTotal9,1201,45021,1001,02430,2202,474DLHSSetupsPart types677279956 Knowledge Check 01When manufacturing overhead is applied to each unit of product B, what is the activity rate that will be used for the setting upmachines (setup) activity cost pool?$18.26$223.00$538.77O $660.06

The question is based on the concept of Cost Accounting.

Answered: Simmons, Incorporated's traditional…

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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A company uses activity-based costing. The company makes two products: A and B. The annual production and sales of A is 400 units at $70 per unit and of B is 200 units at $90 per unit. Direct period costs are $3.000 for each product. There are three activity cost pools, with total allocated cost are as follows: Activity Cost Pools A B. Total Cost Activity 1 Activity 2 Activity 3 $4,280 $2,380 $6,660 1,275 7,175 8,450 2,654 6,877 १531 If the total of direct materials and direct labor costs for Product A is $20,000, the product margin for Product A is: (Enter a number in the box, use a negative sign for a product margin loss) $
Your Company makes three products in a single facility. These products have the following unit product costs: Product A Product B Product C Direct material $26.00 $26.00 $27.00 Direct labor 15.00 17.00 16.00 Variable manufacturing overhead 4.00 5.00 6.00 Fixed manufacturing overhead 21.00 28.00 23.00 Unit cost $66.00 $76.00 $72.00 Additional data concerning these products are listed below: Product A Product B Product C Mixing minutes per unit 3 2 2.5 Selling price per unit $76.00 $90.00 $84.00 Variable selling cost per unit $4.00 $3.00 $5.00 Monthly demand in units 1,500 3,000 4,000 The mixing machines are potentially the constraint in the production facility. A total of 18,000 minutes is available per month on these machines. Direct labor is a variable cost in this company. Required: How many minutes of mixing machine time would be required to satisfy demand for all three products?
Required information Skip to question Greenwood Company manufactures two products-15, 000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor - hours. It is considering implementing an activity - based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine - hours $ 213,400 11,000 MHs Machine setups Number of setups $ 61,600 140 setups Production design Number of products $ 78,000 2 products General factory Direct labor-hours $244,000 10,000 DLHS Activity Measure Product Y Product Z Machining 7,400 3,600 Number of setups 60 80 Number of products 1 1 Direct labor-hours 7,400 2,600 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?…
Please only answer the total amount of fixed manufacturing overhead.
Ivanhoe Inc. has conducted the following analysis related to its product lines using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and activity-based costing systems include direct materials and direct labour costs. Products Product 440X Product 137Y Product 249S (a) Sales Revenue $201,000 172,000 Operating income 87,000 Total Costs Traditional $55,000 74,000 26,000 Additional information related to product usage by these pools is as follows: ABC $50,036 70,668 34,296 For each product line, calculate operating income using the traditional costing system. Product 440X Traditional costing system $ Product 137Y $ Product 249S
A company makes two products—Product A and B. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Product A 0.75 20,000 units Product B 0.50 50,000 units Additional information is as follows: Product A requires $40 in direct materials per unit, and Product B requires $32. The direct labor wage rate is $18 per hour. The company’s activity-based absorption costing system has the following activity cost pools: Activity Cost Pool (and Activity Measures) Estimated Overhead Cost Expected Activity Product A Product B Total Machine setups (number of setups) $ 100,000 100 300 400 Special processing (machine-hours) $ 200,000 2,000 6,000 8,000 General factory (Direct labor-hours) $ 150,000 15,000 25,000 40,000
Assume a company manufactures only two products—14,000 units of Product C and 6,000 units of Product D. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products C and D: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 300,000 15,000 MH Machine setups Number of setups $ 150,000 200 Setups Product design Number of products $ 78,000 2 Products Activity Measure Product C Product D Machine-hours 9,000 6,000 Number of setups 50 150 Number of products 1 1 Using the ABC system, how much total overhead cost would be assigned from all of the activities to Product D? Multiple Choice $271,500 $261,500 $301,500 $251,500
Stargate Corporation has established the following standards for the costs of one unit of its product. The standard production overhead costs per unit are based on direct-labor hours. Calculation for standard per unit cost is as follows: Std Cost Std Qty Std Price/Rate Direct Material $ 14.40 6.00 kg $ 2.40 per kg Direct Labor $ 3.00 0.40 hour $ 7.50 per hour Variable Overhead $ 4.00 0.40 hour $ 10.0 per hour Fixed Overhead $ 4.80 0.40 hour $ 12.0 per hour Total $ 26.20 *based on practical capacity of 2,500 direct-labor hour per month During December 2020, Henry purchased 30,000 kg of direct material at a total cost of $75,000. The total wages for December were $20,000, 75% of which were for direct labor. Henry manufactured 4,500 units of product during December 2020, using 28,000kg of the direct material purchased in December and 2,100 direct-labor hours. Actual variable and fixed overhead cost were $23,100…
Fluegge Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 5.7 liters $ 5.40 per liter Direct labor 0.70 hours $ 20.60 per hour Variable manufacturing overhead 0.70 hours $ 5.50 per hour The company has reported the following actual results for the product for December: Actual output 4,100 units Raw materials purchased 25,100 liters Actual price of raw materials $ 4.80 per liter Actual cost of raw materials purchased $ 120,480 Raw materials used in production 23,360 liters Actual direct labor-hours 2,700 hours Actual direct labor rate $ 21.20 per hour Actual direct labor cost $ 57,240 Actual variable overhead rate $ 5.90 per hour Actual variable overhead cost $ 15,930 The raw materials price variance…
Hansaben
Rahul
Edney Company employs a standard cost system for product costing. The per-unit standard cost of its product is: Raw materials Direct labor (2 direct labor hours x $8.00 per hour) Manufacturing overhead (2 direct labor hours x $12.20 per hour) $ 14.00 16.00 24.40 $ 54.40 Total standard cost per unit The manufacturing overhead rate is based on a normal capacity level of 600,000 direct labor hours. The firm has the following annual manufacturing overhead budget: Variable Fixed $ 3,960,000 3,360,000 $ 7,320,000 Edney incurred $434,550 in direct labor cost for 54,100 direct labor hours to manufacture 26,000 units in November. Other costs incurred in November include $296,000 for fixed manufacturing overhead and $342,000 for variable manufacturing overhead. Required: 1. Determine each of the following for November. [Note: Indicate whether each variance is favorable (F) or unfavorable (U).] a. The variable overhead rate (spending) variance. b. The variable overhead efficiency variance. c. The…

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