terials. Bwing data are available for the second quarter. Number of bikes assembled Coaster 750 Materials cost per bike Other costs: Direct labor Depreciation and lease Supervision and control Factory administration Required: Traveler 450 Total 1,200 $ 627 $ 1,203 $ 300,600 383,600 248,600 341,600 Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Operation cost Materials cost Total cost Unit cost Coaster Traveler Total

terials. Bwing data are available for the second quarter. Number of bikes assembled Coaster 750 Materials cost per bike Other costs: Direct labor Depreciation and lease Supervision and control Factory administration Required: Traveler 450 Total 1,200 $ 627 $ 1,203 $ 300,600 383,600 248,600 341,600 Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Operation cost Materials cost Total cost Unit cost Coaster Traveler Total

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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Craft Company reports the following partial activity-based costing information for its Deluxe model. Complete the table by entering amounts for the missing items. Note: Round "Overhead per unit" to 2 decimal places. Activity Assembly Factory services Setup Total allocated cost Units produced Overhead cost per unit Activity Usage 3,000 direct labor hours 2,800 square feet setups $ $ Activity Rate 10 per direct labor hour per square foot 180 per setup Allocated Cost 28,000 4,500 2,500
Edge Manufacturing produces two types of entry doors: Deluxe andStandard. The assignment basis for support costs has been directlabor dollars. For 2009, Edge Manufacturing compiled the followingdata for the two products:Deluxe StandardSales units $50,000 $400,000Sales price per unit $650.00 $475.00Direct material and labor costs perunit$180.00 $130.00Manufacturing support costs per unit $ 80.00 $120.00Last year, Edge Manufacturing purchased an expensive roboticssystem to allow for more decorative door products in the deluxeproduct line. The CFO suggested that an ABC analysis could bevaluable to help evaluate a product mix and promotion strategy for thenext sales campaign.She obtained the following ABC information for 20X5:Activity Cost Driver Cost Total Deluxe StandardSetups # of setups $ 500,000 500 400 100Machinerelated# of machinehours$44,000,000 600,000 300,000 300,000Packing # of shipments $ 5,000,000 250,000 50,000 200,000N.B.: # = numberRequired:a. Using the activity-based…
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Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Total Cost of Pool $ 454,960 100,000 72,720 Estimated Cost Driver 96,800 10,000 505 Activity Pools Machining Designing costs Setup costs Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B 38,000 4,000 40 Number of machine hours Number of design hours Number of batches Cost Driver Number of machine hours Number of design hours Number of batches Product A Product B Product C Total Overhead Assigned 48,000 2,200 170 Required: Using activity rates, determine the amount of overhead assigned to each product. Note: Do not round intermediate calculations. Round the final answer to nearest whole number. Product C 10,800 3,800 295
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A VACUUM MANAUFACTUER HAS PREPARED THE FOLLOWING HAS THE FOLLOWING COST DATA FOR MANUFACTURING ONE OF ITS ENGINE COMPONENTS BASED ON THE ANNUAL PRODUCTION OF 50,000 UNITS DIRECT MATERIALS $75,000 DIRECT LABOR $100,000 TOTAL $175,000 IN ADDITION, VARIABLE FACTORY OVERHEAD IS APPLIED AT $7.50 PER UNIT. FIXED FACTORY OVERHEAD IS APPLIED AT 150% OF DIRECT LABOUR COST PER UNIT. THE VACUUM SELLS FOR $150 EACH. A THIRD PARTY HAS OFFERED TO MAKE THE ENGINES FOR $60 PER UNIT. 75% OF THE FIXED FACTORY OVERHEAD, WHICH REPRESENTS EXECUTIVE SALARIES, RENT, DEPRECIATION, AND TAXES, CONTINUES REGARDLESS OF DECISION. sHOULD THE COMPANY MAKE OR BUY THE ENGINES?