Tribute Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Tribute does large custom orders. Tribute budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 units per batch but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50 units per batch. (Click the icon to view budgeted information.) Read the requirements. Requirement 1. Ca abor cost in your u Start by calculating Direct materials Forming Assembly Total direct materia Direct manufacturin Forming Assembly Total direct manufa Total direct costs Requirements . Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. - X 3. Calculate the budgeted unit cost of basic and deluxe trophies if Tribute allocates overhead costs in each department using activity-based costing. where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department. 4. Explain briefly why plantwide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why? total o Data table The controller has asked you to compare plantwide, department, and activity-based cost allocation. Tribute Budgeted Information for the Year Ended November 30, 2020 Forming Department Total Basic Deluxe 37,700 $ 21,500 $ 31,200 15,300 Direct materials Direct manufacturing labor Overhead costs: Set up Overhead costs: General overhead Assembly Department Direct materials Direct manufacturing labor Overhead costs: General overhead S $ Basic 4,800 $ 15,300 Deluxe 59,200 46,500 7,440 34,410 15,200 $ 14,700 Total 20,000 30,000 36,000
Tribute Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Tribute does large custom orders. Tribute budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 units per batch but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50 units per batch. (Click the icon to view budgeted information.) Read the requirements. Requirement 1. Ca abor cost in your u Start by calculating Direct materials Forming Assembly Total direct materia Direct manufacturin Forming Assembly Total direct manufa Total direct costs Requirements . Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. - X 3. Calculate the budgeted unit cost of basic and deluxe trophies if Tribute allocates overhead costs in each department using activity-based costing. where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department. 4. Explain briefly why plantwide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why? total o Data table The controller has asked you to compare plantwide, department, and activity-based cost allocation. Tribute Budgeted Information for the Year Ended November 30, 2020 Forming Department Total Basic Deluxe 37,700 $ 21,500 $ 31,200 15,300 Direct materials Direct manufacturing labor Overhead costs: Set up Overhead costs: General overhead Assembly Department Direct materials Direct manufacturing labor Overhead costs: General overhead S $ Basic 4,800 $ 15,300 Deluxe 59,200 46,500 7,440 34,410 15,200 $ 14,700 Total 20,000 30,000 36,000
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