Required:a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hoursas the allocation basis).b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg.Note: For all requirements, do not round intermediate calculations, Round your answers to 2 decimal places.a. Using current costing systemb. Using proposed ABC systemG-09Unit CostG-35MEN Heidelberg Fabrication manufactures two products, G-09 and G-35:Units producedDirect materials cost per unitMachine-hours per unitProduction runs per quarterMachine depreciationSetup laborMaterials handlingTotalProduction at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at theplant follow:Required:G-0919,300$74144Exercise 9-37 (Algo) Activity-Based Costing (LO 9-4)Using current costing system$ 104,22052,11041, 688$ 198,018G-09G-353,860$19a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hoursas the allocation basis).b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg.Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.Unit Cost772G-35

Name: Required:a. Compute the unit costs for the two products, G-09 and G-3
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Required:a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hoursas the allocation basis).b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC

Business

Accounting

Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor 19,300 $7 4 144 Materials handling Total Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: 3,860 $19 $ 104,220 52,110 41, 688 $ 198,018 7 72 Exercise 9-37 (Algo) Activity-Based Costing (LO 9-4) Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hours as the allocation basis). b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.

Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor 19,300 $7 4 144 Materials handling Total Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: 3,860 $19 $ 104,220 52,110 41, 688 $ 198,018 7 72 Exercise 9-37 (Algo) Activity-Based Costing (LO 9-4) Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hours as the allocation basis). b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Required: Compute the amount of overhead cost applied to each product during the year. PROBLEM 4-17 Comprehensive Process Costing Problem - Weighted -Average Method (LO1, LO2, L03, L04, LO5) Techno Co. produces a special kind of tool that is widely used by construction. The tool is produced in two processes: bending and drilling. Raw materials are introduced at various points in the Bending Department; labor and overhead costs are incurred evenly through the bending operation. The bent output is then transferred to the Drilling Department. The following incomplete Work in Process account has been provided for the Bending Department for May: Work in Process - Bending Department May 1 inventory (12,000 units; materials 80% complete; labor and overhead 60% complete) May costs dded: Raw materials (270,000 units) Direct labor Overhead May 31 inventory (9,000; materials 90% complete; labor and overhead 60% complete) 45,369 394,210 638,144 493,584 Completed and transferred To drilling (2…
A company computed the following activity rates using activity-based costing. Activity Setup Materials handling Inspection Activity Setup The company's deluxe model used the following activities to produce 2,000 units. Compute the overhead cost per unit for the deluxe model using activity-based costing. Materials handling Inspection /* 3 E Multiple Choice D C $ $6.00 $8.50. 4 101 R F V % 5 $2,000 per setup $100 per materials requisition $4 per unit inspected T 6 setups 50 materials requisitions 2,000 units inspected G Activity Rate ^ Activity Rate 40 6 Y H & Q Search 4- O ► 11 ) O fn P 112 + C = ins A prt sc ] delete backspace
Required information Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Materials handling Total Required: Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: G-09 19,900 $ 7 4 144 a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling G-35 3,980 $19 $ 107,460 53, 730 42,984 $ 204,174 a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at…
Number of Direct Labor Hours Machine Hours Product Units Per Unit Per Unit Blinks 1,037 3 7 Dinks 2,059 6 6 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $111,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $88,600. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs. The single plantwide rate if it is based on machine hours instead of labor hours, is a.$23.41 per machine hour b.$12.72 per machine hour c.$8.14 per machine hour d.S10.18 per machine hour
XYXZ Manufacturing Company applies process costing in its production, which consisted of two departments. The following data were gotten from their operations: Units Dept 1 Dept 2 Beginning WIP 50,000 70,000 Work to be done for the period 80% 30% Ending WIP 20,000 17,500 Work completed 2/3 60% Started 150,000 Costs Beginning WIP Transferred In ------ P285,450 Materials P135,000 214,875 Conversion Costs P97,500 280,725 Current Transferred In ? Materials P1980,000 P840,000 Conversion Costs P3088,800 P1282,500 Additional Information are as follows: Manufacturing starts at Department 1 where all materials are added at start of production and FIFO costing is used. Units are added in the Department 2 where 50% of direct materials as added when it is 30% complete and excess when it is ready to be transferred to the storeroom. This…
Problem 1 Brabensky Company produces a product in two departments: (1) Assembly and (2) Painting. The company uses a process cost accounting system. Purchased raw materials for $90,000 on account. Raw materials requisitioned for production were: Direct materials Assembly department $77,000 Factory labor used: Assembly department $34,000 Painting department 18,000 Manufacturing overhead is applied to the product based on machine hours used in each department: Assembly department—320 machine hours at $40 per machine hour. Painting department—120 machine hours at $15 per machine hour. Units costing $86,000 were completed in the Painting Department and were transferred to the Finished Good. Finished goods costing $70,000 were sold on cash for $102,000. Instructions Prepare the journal…
COVID 19 Co has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,443,140 59.000 machine-hours Processing orders $ 80,905 2,750 orders Inspection $145.733 1,910 inspection-hours The company makes 890 units of product YBa year, requiring a total of 2,070 machine-hours, 41 orders, and 35 inspection-hours per year. The product's direct materials cost is $56.46 per unit and its direct labor cost is $22.67 per unit The product sells for $148.50 per unit According to the activity-based costing system, the product margin for product YB is: (Round your intermediate calculations and final answers to 2 decimal places.) Select one: a $4.560.38 b $5.450.38 C $7.230 38 d. $6.340.38
S ipped Book erences Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Mercon $ 10.00 Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced $ 3.00 0.20 10,000 These products are customized to some degree for specific customers. Wurcon $ 8.00 $ 3.75 0.25 40,000 Required: 1. The company's manufacturing overhead costs for the year are expected to be $336,000. Using the company's conventional costing system, compute the unit product costs for the two products. 2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year: 1.…
Problem 3 ZXC company are using a single rate for its overhead application yet they want to decide to adopt the activity based costing in their manufacturing process. There are three activities done in the as stated below. The company usually based on 30,000 direct labor hours for its overhead and 50 pesos of materials per unit produced. The cost are as follows Activity centers Materials Handling Machine Setup Product Inspection Total Product ZZZ YYY QTY Produced 3,000 7,500 Cost 477,000 189,000 288,000 954,000 DLH Hours 8,500 12,000 DL Cost 144,000 279,000 Activity Drivers 60,000 times handled 9,000 setups 18,000 units Materials Handled 17,500 22,000 Required: 1. Compute the unit cost for each product using a single rate base on DL hours 2. Compute the unit cost for each product using activity-based costing Setups 2,250 3,600
2 Drilling Company uses activity-based costing and provides this information: Driver Rate $ 0.80 Manufacturing Activity Materials handling Machinery Assembly Inspection Cost Driver Number of parts Number of machine hours Number of parts Number of finished units 58.00 3.20 37.00 Drilling has just completed 87 units of a component for a customer. Each unit required 107 parts and 3.35 machine hours. The prime cost is $1,370 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Required: 1. Compute the total manufacturing costs and the unit costs of the 87 units just completed using ABC costing. 2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $187 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $307 per unit. Compute the full product cost per unit, including upstream,…
Equivalent Units of Production and Related Costs The charges to Work in Process—Baking Department for a period as well as information concerning production are as follows. The Baking Department uses the weighted average cost method, and all direct materials are placed in process during production. Work in Process—Baking Department Bal., 2,700 units, 60% completed 5,265 To Finished Goods, 19,400 units ? Direct materials, 19,700 units 56,145 Direct labor 27,449 Factory overhead 14,141 Bal., 3,000 units, 40% completed ? If required, round cost per equivalent unit answer to two decimal places. a. Determine the number of whole units to be accounted for and to be assigned costs. fill in the blank units b. Determine the number of equivalent units of production. fill in the blank units c. Determine the cost per equivalent unit. $ fill in the blank per equivalent unit d. Determine the cost of units transferred to Finished Goods. $ fill in the blank e.…
Exercise 8-29 (Algo) Compute Costs per Equivalent Unit: FIFO Method (LO 8-5) The following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process): Units Material Costs Beginning work in process 90,000 $ 30,000 Started in May 270,000 102,400 Units completed 230,000 Ending work in process 130,000 Required: Compute the cost per equivalent unit for materials using the FIFO method. (Round "Cost per equivalent unit" answer to 2 decimal places.) Total costs to be accounted for: Cost per equivalent per unit: