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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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
labor 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
1. 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.
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?
Print
Done
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
Basic
Total
Direct materials
Deluxe
37,700 $ 21,500 $
31,200 15,300
Direct manufacturing labor
Overhead costs: Set up
Overhead costs: General overhead
Assembly Department
Direct materials
Direct manufacturing labor
Overhead costs: General overhead
Print
$
$
Basic
4,800 $
15,300
Done
59,200
46,500
7,440
34,410
Deluxe
15,200 $
14,700
Total
20,000
30,000
36,000
X
Transcribed Image Text: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 labor 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 1. 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. 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? Print Done 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 Basic Total Direct materials Deluxe 37,700 $ 21,500 $ 31,200 15,300 Direct manufacturing labor Overhead costs: Set up Overhead costs: General overhead Assembly Department Direct materials Direct manufacturing labor Overhead costs: General overhead Print $ $ Basic 4,800 $ 15,300 Done 59,200 46,500 7,440 34,410 Deluxe 15,200 $ 14,700 Total 20,000 30,000 36,000 X
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