The controller of D-Day Chemical Supply has established the following activity centers with overhead costs and related cost drivers: Budgeted Overhead Costs Cost Drivers Budgeted Level for Cost Activity Centers Drivers Materials Handling Machine setups Hazardous waste Weight of raw materials 60,000 pounds Number of setups Weight of hazardous Materials Number of inspections Machine Hours P120,000 240,000 60,000 120 setups 12,000 pounds Quality Control Others 85,000 205.000 1,000 inspections 102,500 hours An order for 1,000 boxes of powdered chemicals has the following production requirements: Raw materials (in pounds) Machine setups Hazardous materials (in pounds) Inspections Machine hours 12,500 25 2,500 30 520

The controller of D-Day Chemical Supply has established the following activity centers with overhead costs and related cost drivers: Budgeted Overhead Costs Cost Drivers Budgeted Level for Cost Activity Centers Drivers Materials Handling Machine setups Hazardous waste Weight of raw materials 60,000 pounds Number of setups Weight of hazardous Materials Number of inspections Machine Hours P120,000 240,000 60,000 120 setups 12,000 pounds Quality Control Others 85,000 205.000 1,000 inspections 102,500 hours An order for 1,000 boxes of powdered chemicals has the following production requirements: Raw materials (in pounds) Machine setups Hazardous materials (in pounds) Inspections Machine hours 12,500 25 2,500 30 520

Name: Question: Using ABC, the total overhead costs charged to the 1,000 box
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Description: Question: Using ABC, the total overhead costs charged to the 1,000 boxes of powdered chemical is: The controller of D-Day Chemical Supply has established the following activity centers with overhead costs andrelated cost drivers:Activity CentersBudge

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. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? B. How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product?
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LockTite Company produces two products, Pretty Safe (PS) and Virtually Impenetrable (VI). The following two tables give pertinent information about these products. Solve, a. What is the cost per unit of Pretty Safe if LockTite uses traditional overhead allocation based on number of units produced? b. What is the cost per unit of Pretty Safe if LockTite uses activity-based costing to allocate overhead?
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Subject - Acounting