Using the following information for question 8-10Honeydew Company produces two products, a high-end laptop computer under the label BunsenLaptops, and an inexpensive desktop computer under the label Beaker Computers. The twoproducts use two overhead activities, with the following costs:Setting up equipmentMachining$2,00012,000The controller has collected the expected annual prime costs for each product, the machine hours,the setup hours, and the expected production.Direct LaborDirect MaterialsExpected Production in UnitsMachine hoursSetup hours8. Calculate Beaker's consumption ratio for setup hours.a. 0.50b. 0.45c. 0.90d. 0.25BunsenBeaker$20,000$5,00015,0004,0002,0002,0007501,5005050

The objective of this question is to calculate the consumption ratio for setup hours for Beaker…

Answered: Using the following information for…

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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Leach Finishing makes various metal fittings for the construction industry. Three of the fittings, models X-12, X-24, and X-30, require grinding on a patented machine of which Leach has only one. The cost of production information for the three products follow: X-12 $35 $ 20 18.0 Price per fitting Variable cost per fitting Units per hour of grinding The testing machine used for both models has a capacity of 3,230 hours annually. Fixed manufacturing costs are $496,000 annually. Required A Required B X-24 $ 51 $ 27 12.5 Required: a. Suppose that Leach Finishing can sell at most 59,200 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually? b. Suppose that Leach Finishing can sell at most 18,000 units of any one fitting. How many units of each fitting should Leach Finishing produce annually? X-30 $ 70 $ 44 10.0 Complete this question by entering your answers in the tabs below. X-12 X-24 X-30 units units units Suppose that Leach Finishing can…
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Product costs using activity rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $32 per machine hour Assembly $34 per direct labor hour Setup $86 per setup Inspecting $24 per inspection Production scheduling $23 per production order Purchasing $14 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 650 450 Direct labor hours 192 257 Setups 37 37 Inspections 31 38 Production orders 30 20 Purchase orders 318 93 Units produced 530 420 This information has been collected in the Microsoft Excel Online…
Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts Direct Labor- Hours per unit 0.70 0.80 Annual Production Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $20 per hour. Activity Cost Pool Machine setups Special processing General factory 26,000 units 90,000 units c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 33,300 $ 172,800 $ 858,000 Estimated Activity Rims 70 3,000 18,200 Posts 230 0 72,000 Total 300 3,000 90,200 2. Determine the unit product cost of each product…
Question 3: Abdur Rahman has received an order from the neighbor land of FIJI ISLAND Company for the special dairy product he makes. Fiji Island Co asked for 5,000 units of the dairy products. To make the product, Abdur Rahman needs $5 of direct materials per unit , 15 Minutes to make one unit, hourly payment is $12. For the purpose of calculating overhead, the company has estimated 30,000 direct labor hour would be needed this year. Estimated fixed manufacturing overhead $150,000 and variable manufacturing overhead is $4 per hour. During the season, the actual manufacturing overhead of Abdur Rahman Company was $250,000 with total 32,000 direct labor. Required: 3a). Determine the product costs per unit also total product cost for Fiji Company. 3b). Why companies use predetermined overhead costs rather than actual manufacturing overhead costs to apply overhead to jobs.
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Body-Solid Inc. manufactures elliptical exercise machines and treadmills. The products are prouced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $25 per machine hour Assembly $12 per direct labor hour Setup $52 per setup Inspecting $25 per inspection Production scheduling $13 per production order Purchasing $10 per purchase order The activity - base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,845 1,089 Direct labor hours 472 184 Setups 58 18 Inspections 630 378 Production orders 63 13 Purchase orders 181 110 Units produced 272 182 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the…
Lean Mfg: Vintage Audio Inc
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