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Units produced Prime costs Machine hours Engineering hours Receiving orders Inspection hours Overhead costs: Machining Engineering Receiving Inspecting products Required: Machining rate Engineering rate Receiving rate Inspecting rate Regular Deluxe 1. Calculate the four activity rates. Regular Deluxe $ $ Regular Deluxe Regular $ 150,000 $13,200,000 $ 150,000 Unit cost $7,200,000 1,650,000 512,000 324,000 550 320 180 300 400 600 per unit Overhead Cost ✔per hour X per unit 8 ✓per machine hour. per hour per order per unit Deluxe 450,000 2. Calculate the unit costs using activity rates. Round your answers to the nearest cent. per unit $51,300,000 750,000 2,700 1,200 1,200 Total Calculate the overhead cost per unit. Round your answers to the nearest cent. $64,500,000 900,000 3,000 1,600 1,800 3. If consumption ratios instead of activity rates were used to assign costs instead of activity rates, show the cost assignment for the inspection activity. Cost assignment

Units produced Prime costs Machine hours Engineering hours Receiving orders Inspection hours Overhead costs: Machining Engineering Receiving Inspecting products Required: Machining rate Engineering rate Receiving rate Inspecting rate Regular Deluxe 1. Calculate the four activity rates. Regular Deluxe $ $ Regular Deluxe Regular $ 150,000 $13,200,000 $ 150,000 Unit cost $7,200,000 1,650,000 512,000 324,000 550 320 180 300 400 600 per unit Overhead Cost ✔per hour X per unit 8 ✓per machine hour. per hour per order per unit Deluxe 450,000 2. Calculate the unit costs using activity rates. Round your answers to the nearest cent. per unit $51,300,000 750,000 2,700 1,200 1,200 Total Calculate the overhead cost per unit. Round your answers to the nearest cent. $64,500,000 900,000 3,000 1,600 1,800 3. If consumption ratios instead of activity rates were used to assign costs instead of activity rates, show the cost assignment for the inspection activity. Cost assignment

FINANCIAL ACCOUNTING
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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Units produced Prime costs Machine hours Engineering hours Receiving orders Inspection hours Overhead costs: Machining Engineering Receiving Inspecting products Required: Machining rate Engineering rate Receiving rate Inspecting rate Regular Deluxe 1. Calculate the four activity rates. $ Regular Deluxe $ $ Regular Deluxe Regular $ 150,000 $13,200,000 150,000 $7,200,000 1,650,000 512,000 324,000 300 400 per unit 600 550 ✓ per hour 320 ✓per order 180 ✓per hour X per unit Overhead Cost per unit 8 ✓per machine hour Deluxe per unit 450,000 $51,300,000 2. Calculate the unit costs using activity rates. Round your answers to the nearest cent. Unit cost 750,000 2,700 1,200 1,200 Total $64,500,000 Calculate the overhead cost per unit. Round your answers to the nearest cent. 900,000 3,000 1,600 1,800 3. If consumption ratios instead of activity rates were used to assign costs instead of activity rates, show the cost assignment for the inspection activity. Cost assignment
Transcribed Image Text:Units produced Prime costs Machine hours Engineering hours Receiving orders Inspection hours Overhead costs: Machining Engineering Receiving Inspecting products Required: Machining rate Engineering rate Receiving rate Inspecting rate Regular Deluxe 1. Calculate the four activity rates. $ Regular Deluxe $ $ Regular Deluxe Regular $ 150,000 $13,200,000 150,000 $7,200,000 1,650,000 512,000 324,000 300 400 per unit 600 550 ✓ per hour 320 ✓per order 180 ✓per hour X per unit Overhead Cost per unit 8 ✓per machine hour Deluxe per unit 450,000 $51,300,000 2. Calculate the unit costs using activity rates. Round your answers to the nearest cent. Unit cost 750,000 2,700 1,200 1,200 Total $64,500,000 Calculate the overhead cost per unit. Round your answers to the nearest cent. 900,000 3,000 1,600 1,800 3. If consumption ratios instead of activity rates were used to assign costs instead of activity rates, show the cost assignment for the inspection activity. Cost assignment
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