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 1EB: Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct...

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All costs incidental to materials procurement and handling until they are issued are charged tothe materials account by Cruz Mfg. Co. at a rate predetermined for each of the departmentsinvolved.For 19C, the estimated departmental costs are given:Purchasing department P175,000Receiving and Inspection Dept. 124,500Materials department 83,000Accounting department (20% isestimated to be related toprocessing of payments formaterials.295,000Purchases for 19C were estimated to amount to P5, 000,000 for more or less 8,300,000units to be ordered 50 times.Actual purchases for 19C amounted to P5, 600,000 for total of 8,000,000 units in 52orders. Costs incurred by the four given departments were as follows:Purchasing department P180,000Receiving and inspectiondepartment128,000Materials department 78,000Accounting department (20% isestimated to be related toprocessing of payments formaterials.290,000Required:a. Compute for the predetermined departmental overhead rates.b. How much is the applied…
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.
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: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
Pinnocle Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity 67,000 machine-hours Assembly $1,321,240 Processing orders 39,780 1,500 orders Inspection 105,792 1,520 inspection-hours The company makes 470 units of product S78N a year, requiring a total of 720 machine-hours, 40 orders, and 15 inspection-hours per year. The product's direct materials cost is $50.45 per unit and its direct labor cost is $12.66 per unit. The product sells for $118.40 per unit. According to the activity-based costing system, the product margin for product S78N is:
Locke Data Processing reported expenses of $20.50 million for indirect labor, of which $10.10 million was for data analysis and $10.40 million was for data entry. Locke recorded 100,000 hours of data analysis and 400,000 hours of data entry. What are the activity-based rates for each area of direct labor? Direct Labor Data analysis Data entry Activity-Based Rate per hour per hour
Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Supervision of direct labor Overhead Costs Cost drive Activity level $400,000 Direct labor - hours 800,000 Machine maintenance $108,000 Machine - hours 900,000 Facility rent $228,000 Square feet of area 120,000 Total overhead costs $736,000 The accounting records show the Mossman Job consumed the following resources: Cost driver Actual level Direct labor - hours 260 Machine - hours 2,000 Square feet of area 60 Using the three cost pools to allocate overhead costs, what is the total amount of overhead costs to be allocated to the Mossman Job? O A. $478.00 O B. $462.80 OC. $17,218.25 O D. $484.00
Angler Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Assembly 248,888 DLH Finishing 154,000 DLH 68,000 MH 448,800 MH $440,000 Direct labor hours Machine hours Overhead costs Assume that Angler Industries allocates overhead using a plantvide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.90 machine hours in the Assembly Department, and 4.00 direct labor hours and 0.6 machine hours in the Finishing Department? Multiple Chaises O O O $21.50 $17.60 $2.00. $18.10 $ 677,680 $13.20.
Ravelo Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Assembly Processing orders Inspection Estimated Overhead Cost $ 517,520 $ 63,763 $ 87,089 Expected Activity 53,500 machine-hours 2,050 orders. 2,060 inspection-hours Data concerning the company's product L19B appear below: Annual unit production and sales Annual machine-hours Annual number of orders. Annual inspection hours Direct materials cost Direct labor cost 620 1,180 260 210 $56.74 per unit $29.45 per unit According to the activity-based costing system, the unit product cost of product L19B is closest to: (Round your intermediate calculations to 2 decimal places.) Im
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