Tulip Company produces two products, T and U. The indirect labor costs include the following two items:Plant supervision$700,000Setup labor (indirect)300,000Total indirect labor$1,000,000 The following activity-base usage and unit production information is available for the two products: Number of SetupsDirectLabor HoursUnitsProduct T20020,000 900Product U20030,0001,100Total40050,0002,000 a. Determine the single plantwide factory overhead rate, using direct labor hours as the activity base. per dlhb. Determine the factory overhead cost per unit for Products T and U, using the single plantwide factory overhead rate. Round your answers to twodecimal places.Factory overheadcost per unitProduct TProduct Uc. Determine the activity rate for plant supervision and setup labor, assuming that the activity base for supervision is direct labor hours and the activitybase for setup labor is number of setups.SetupSupervisionActivity rateper setupper dlhd. Determine the factory overhead cost per unit for Products T and U, using activity-based costing. Round your answers to two decimal places.Factory overheadcost per unitProduct TProduct U

Plantwide overhead rate is used to distribute the manufacturing cost on the basis of direct labor…

Tulip Company produces two products, T and U. The indirect labor costs include the following two items: Plant supervision $700,000 Setup labor (indirect) 300,000 Total indirect labor $1,000,000 The following activity-base usage and unit production information is available for the two products: Number of Setups Direct Labor Hours Units Product T 200 20,000 900 Product U 200 30,000 1,100 Total 400 50,000 2,000 a. Determine the single plantwide factory overhead rate, using direct labor hours as the activity base.

Tulip Company produces two products, T and U. The indirect labor costs include the following two items: Plant supervision $700,000 Setup labor (indirect) 300,000 Total indirect labor $1,000,000 The following activity-base usage and unit production information is available for the two products: Number of Setups Direct Labor Hours Units Product T 200 20,000 900 Product U 200 30,000 1,100 Total 400 50,000 2,000 a. Determine the single plantwide factory overhead rate, using direct labor hours as the activity base.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 231,000 11,000 MHs Machine setups Number of setups $ 180,000 300 setups Production design Number of products $ 94,000 2 products General factory Direct labor-hours $ 260,000 10,000 DLHs Activity Measure Product Y Product Z Machining 9,000 2,000 Number of setups 60 240 Number of products 1 1 Direct labor-hours 9,000 1,000 4. What is the activity rate for the Machine Setups activity cost pool?
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Trying to find the activity based costing of the following for the allocated overhead
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Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 227,700 11,000 MHs Machine setups Number of setups $ 153,900 270 setups Production design Number of products $ 91,000 2 products General factory Direct labor-hours $ 257,000 10,000 DLHs Activity Measure Product Y Product Z Machining 8,700 2,300 Number of setups 60 210 Number of products 1 1 Direct labor-hours 8,700 1,300 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and…