Themba Ltd manufactures two types of soccer balls, namely Training and Match balls. Fixed manufacturing overheads (FMO) are allocated to products using activity-based costing (ABC). Below is the Activity area and the FMO applicable to this area. Activity area Set-up costs Machine costs Quality inspections Fixed manufacturing overheads R 480 000 1 600 500 800 000 • Set-up costs: The manufacturing machines need to be set up before each production run. The balls are manufactured in production runs and each independent Training production run contains 250 balls and each independent Match production run contains 100 balls. • Machine cost: Temba's production process is highly automated, and it takes 15 machine minutes and 24 machine minutes to manufacture one Training and one Match ball respectively. • Quality inspections: Every 10th Match ball and every 200th Training ball is quality inspected. • Temba manufactured 500 000 Training balls and 100 000 Match balls. The total machine cost allocated to Match balls is: Select one: a. R388 000,00 b. R266 750,00 C. R800 250,00 d. R984 923,08 e. None of the options

Themba Ltd manufactures two types of soccer balls, namely Training and Match balls. Fixed manufacturing overheads (FMO) are allocated to products using activity-based costing (ABC). Below is the Activity area and the FMO applicable to this area. Activity area Set-up costs Machine costs Quality inspections Fixed manufacturing overheads R 480 000 1 600 500 800 000 • Set-up costs: The manufacturing machines need to be set up before each production run. The balls are manufactured in production runs and each independent Training production run contains 250 balls and each independent Match production run contains 100 balls. • Machine cost: Temba's production process is highly automated, and it takes 15 machine minutes and 24 machine minutes to manufacture one Training and one Match ball respectively. • Quality inspections: Every 10th Match ball and every 200th Training ball is quality inspected. • Temba manufactured 500 000 Training balls and 100 000 Match balls. The total machine cost allocated to Match balls is: Select one: a. R388 000,00 b. R266 750,00 C. R800 250,00 d. R984 923,08 e. None of the options

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 34BEB: Use the following information for Brief Exercises 4-34 and 4-35: Sanjay Company manufactures a...

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Themba Ltd manufactures two types of soccer balls, namely Training and Match balls. Fixed manufacturing overheads (FMO) are allocated to products using activity-based costing (ABC). Below is the Activity area and the FMO applicable to this area. Activity area Set-up costs Machine costs Quality inspections Fixed manufacturing overheads R 480 000 1 600 500 800 000 • Set-up costs: The manufacturing machines need to be set up before each production run. The balls are manufactured in production runs and each independent Training production run contains 250 balls and each independent Match production run contains 100 balls. • Machine cost: Temba's production process is highly automated, and it takes 15 machine minutes and 24 machine minutes to manufacture one Training and one Match ball respectively. • Quality inspections: Every 10th Match ball and every 200th Training ball is quality inspected. • Temba manufactured 500 000 Training balls and 100 000 Match balls. The total quality inspection…
Themba Ltd manufactures two types of soccer balls, namely Training and Match balls. Fixed manufacturing overheads (FMO) are allocated to products using activity-based costing (ABC). Below is the Activity area and the FMO applicable to this area. Activity area Set-up costs Machine costs Quality inspections Fixed manufacturing overheads R 480 000 1 600 500 800 000 • Set-up costs: The manufacturing machines need to be set up before each production run. The balls are manufactured in production runs and each independent Training production run contains 250 balls and each independent Match production run contains 100 balls. • Machine cost: Temba's production process is highly automated, and it takes 15 machine minutes and 24 machine minutes to manufacture one Training and one Match ball respectively. • Quality inspections: Every 10th Match ball and every 200th Training ball is quality inspected. • Temba manufactured 500 000 Training balls and 100 000 Match balls. The total machine cost…
Your Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Estimated Expected Activity Activity Cost Pool Cost Product A Product B Total Machine related $17,600 700 300 1,000 MH Batch setup $32,600 600 200 800 Setups Other $52,500 900 500 1,400 DLH What is the activity rate under the activity-based costing system for Batch setups? Group of answer choices $54.33 $40.75 $40.75 per Setup $16.30 $16.30 per Setup $54.33 per Setup
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Jennifer Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Estimated Expected Activity Overhead Activity Cost Pools Product design Assembling Supporting customers Cost Product A Product B 400 Total $23,500 $18,000 $34,600 100 200 300 500 500 600 700 900 The activity rate under the activity-based costing sysam for Supporting customers is closest to: Multiple Cholce $36.24 $84.56 S115.33 Prev 1 of 10 Next > 2:0 92 F AQI 61 9/9 Type here to search DELL
XYZ Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changin to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount XY Production setups Number of setups 24 82.000 12 Material handling Number of parts 48,000 56 24 Packaging costs Number of units 130,000 80,000 50,000 $ 260,000 What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)? Select one: O a. $2.27. Ob. none of the given answer. Oc $2.33. 2d $1.83. 2e s179.
Perez Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows: b. Determine the overhead cost allocated to each product.
Under an activity based costing system, what is the per-unit overhead cost of Z
Kulka Corporation manufactures two products: Product F82D and Product T05P. The company uses a plantwide overhead rate based on direct labor hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products F82D and T05P. Activity Cost Pool Activity Measure Total Cost Total Activity Machining.......................... Machine-hours $180,000 9,000 MHs Machine setups.................. Number of setups $125,000 250 setups Product design.................. Number of products $44,000 2 products General factory.................. Direct labor-hours $260,000 10,000 DLHs Activity Measure Product F82D Product T05P Machine-hours................. 5,000 4,000 Number of setups........... 160 90 Number of…
Doles Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Setting up batches Processing customer orders Assembling products Activity Rate Number of batches Number of customer orders Number of assembly hours Required: $66.52 per batch $23.58 per customer order $10.71 per assembly hour Data concerning two products appear below: Product K52W Product X94T 65 45 418 How much overhead cost would be assigned to each of the two products using the company's activity-based costing system? Product K52W Total overhead cost: ? 52 30 161 Product X94T ?
Hails Corporation manufactures two products: Product Q21F and Product H44W. The company uses a plantwide overhead rate based on direct labor- hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Q21F and H44W. Activity Cost Pool Machining Machine setups Product design Order size Machine-hours Number of setups Number of products Direct labor-hours 26.71% 50.00% 34.18% Activity Measure O 60.89% Machine-hours Number of setups Number of products Direct labor-hours Activity Measure Total Cost Total Activity $ 195,000 13,000 MHs 90,000 150 setups $ $ 64,000 $ 280,000 Product Q21F 9,000 80 1 6,000 Using the ABC system, the percentage of the total overhead cost that is assigned to Product Q21F is closest to: 2 products 10,000 DLHs Product H44W 4,000 70 1 4,000