Please need answer not use chatgpt The following overhead cost information is available for the JamesCorporation:ActivityAllocation Base (Driver)PurchasingNumber of purchase ordersOverhead Cost$400,000ReceivingNumber of shipments received $100,000Machine setups Number of setupsQuality control Number of inspections$400,000$150,000During the year, 8,000 purchase orders were issued; 25,000 shipments werereceived; 4,000 machine setups occurred; and 7,500 inspections wereconducted. Employees worked a total of 10,000 hours on production.1. Determine the overhead rate, using the traditional overhead allocationmethod based on direct labor hours.2. Determine the overhead rate for each of the activities, assuming thatABC is used.

Step 1: Define Overhead RatesThe firm estimates overhead rates for overhead cost allocation.…

Answered: The following overhead cost information…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

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Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity $138,000 Number of setups 10,200 Number of orders 92,400 Machine hours 18,480 Receiving hours phones with the following expected activity demands: Setting up equipment Ordering materials Machining Receiving Silven produces two models of cell Model X 5,000 80 200 6,600 385 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model Y 10,000 40 400 4,950 770 120 600 11,550 1,155
Activity Cost Activity Base Procurement $370,000 Number of purchase orders Scheduling 250,000 Number of production orders Materials handling Product development 730,000 500,000 Number of moves Number of engineering changes Production 1,500,000 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 The activity rate for the scheduling activity cost pool is a.$29.41 per production order b.$200.00 per production order c.$20.00 per production order d.$10.42 per production order
XYZ has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 228,060 18,000 machine-hours Processing orders $ 34,068 1,600 orders Inspection $ 125,560 1,720 inspection hours The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit. According to the activity-based costing system, the average cost of product YBY is closest to: O a. $94.26 per unit O b. None of the given answer is correct. Oc $94.00 per unit O d. $95.77 per unit O e $93.99 per unit CLEAR MY CHOICE
XYZ has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $228,060 18,000 machine-hours Processing orders $ 34,068 1,600 orders Inspection $125,560 1,720 inspection hours The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit. According to the activity-based costing system, the average cost of product YBY is closest to: O a. $94.00 per unit O b. $94.26 per unit Oc. $93.99 per unit O d. $95.77 per unit е. None of the given answer is correct.
Determine the Manufacturing Overhead Based on the given information, determine the Purchases EFS Systems undertakes its own machine maintenance. The depreciation on the equipment is P20,000 per year and operating cost is P2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units. Determine the Prime Cost Determine the Finished Goods, Beginning Determine the Conversion Cost Determine the Manufacturing Cost Determine the Finished Goods, Ending
Jordan Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost driver Activity level Supervision of direct labor $326,000 Direct labor-hours 900,000 Machine maintenance $132,000 Machine-hours 960,000 Facility rent $217,000 Square feet of area 100,000 Total overhead costs $675,000 The accounting records show the Mossman Job consumed the following resources: Cost driver Actual level Direct labor-hours 200 Machine-hours 1,500 Square feet of area 70 If direct labor-hours are considered the only overhead cost driver, what is the single cost driver rate for Jordan?
Rocks Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Activity Overhead per Activity Annual Usage Machine Set Up $75,000 6,000 Machine Hours $85,002 5,484 Inspections $70,000 20,000 Compute the overhead rate for each activity.
XYZ has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $228,060 18,000 machine-hours Processing orders $ 34,068 1,600 orders Inspection $125,560 1,700 inspection hours The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 20 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit. According to the activity-based costing system, the average cost of product YBY is closest to: O a. $93.99 per unit O b. None of the given answer is correct. O. $95.77 per unit O d. $94.00 per unit O e. $94.26 per unit CLEAR MY CHOICE MacBook Air 20 F3 F1 $ % & # 5 6. 7 8 1 2 3 4 T. Y Q W E と K F G تثبيت A (( S V alt الأوامر C. I R
Hosmer Industries provides the following information about resources and usage: Unused Resources Capacity Cost Driver Volume Resources used Materials $ 4,800 6,400 pounds Power 3,744 272 hours Setups 1,800 62 setups Purchasing 4,320 64 purchase orders Client assistance 18,240 40 inquiries Supervision 8,160 256 labor-hours Facility cost 6,720 3,360 square meters Resources supplied Materials $ 235,200 Power 42,912 Setups 57,600 Purchasing 50,400 Client assistance 37,440 Supervision 69,600 Facility cost 67,200 Sales revenue for Hosmer Industries is $720,000. Required: Prepare a traditional income statement. Prepare an activity-based income statement.
A company incurs $1220000 of overhead each year in three departments, Processing, Packaging, and Testing. The company performs 800 processing transactions, 190000 packaging transactions, and 2000 tests per year in producing 398000 drums of oil and 592000 drums of sludge. The following data are available: Department Use of Cost Driver Cost Processing 800 $496000 Packaging 190000 496000 Testing 2000 228000 Production information for sludge is as follows: Department Use of Cost Driver Processing 500 Packaging 95000 Testing 600 Calculate the amount of overhead assigned to sludge. $459000 $610000 $626400 $593600
:XYZ has provided the following data from its activity-based costing system Total Activity Total Cost Activity Cost Pool machine-hours 18,000 228,060 $ Assembly orders 1,600 34,068 $ Processing orders inspection hours 1,700 125,560 $ Inspection The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per .unit :According to the activity-based costing system, the average cost of product YBY is closest to per unit $93.99 a O .None of the given answer is correct .b O per unit $94.00 .cO per unit $94.26 d O per unit $95.77 .e O
Carbon Company provides the following information about resources. Unused Resources Capacity Cost Driver Volume Resources used Materials $ 2,500 10,000 pounds Energy 4,670 350 machine-hours Setups 0 86 setups Purchasing 3,600 100 purchase orders Customer service 7,000 90 returns Long-term labor 4,960 340 labor-hours Administrative 7,760 440 labor- hours Resources supplied Materials $ 122,500 Energy 21,820 Setups 24,080 Purchasing 26,600 Customer service 20,500 Long- term labor 29,100 Administrative 30,200 Sales revenue for Carbon Company is $590,000. Required: a. Prepare a traditional income statement. b. Prepare an activity- based income statement.

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