A.Using the traditional system, determine the operating profit per unit for each style of faucet.В.Determine the activity-cost-driver rate for setup costs and inspection costs.С.Using the ABC system, for each style of faucetCompute the estimated overhead costs per unit.Compute the estimated operating profit per unit.1.2. Shym Accents Company manufactures and sells three styles of kitchen faucets: Gold, Silver, and Platinum.Production takes 25, 25, and 10 machine hours to manufacture 1000-unit batches of gold, silver and platinumfaucets, respectively. The following additional data apply:GOLDSILVERPLATINUMSales in units, forecastedData per faucetSelling price30,00050,00040,000$ 40$ 30$ 30$ 8$ 15$ 12$ 4$ 3$ 3$ 8$ 9$ 9Direct materialDirect laborOH based on DL hrs (traditional approach)Time her 1000-faucet batch10.025.0Direct labor hours40.030.0Machine hours25.010.0Setup hoursInspection hours1.00.51.03.020.020.0Total overhead costs and activity levels for the year are estimated as follows:ActivityOverhead CostsActivity Levels2,900 hours2,400 hours95 setup hours2,700 inspection hoursDirect labor hoursMachine hoursSetupsInspections$ 465,500$ 405,000$ 870,000

The difference between the traditional and activity based costing system lies in the treatment of…

Using the traditional system, determine the operating profit per unit for each style of faucet. Determine the activity-cost-driver rate for setup costs and inspection costs. Using the ABC system, for each style of faucet Compute the estimated overhead costs per unit. Compute the estimated operating profit per unit. 1. 2.

Using the traditional system, determine the operating profit per unit for each style of faucet. Determine the activity-cost-driver rate for setup costs and inspection costs. Using the ABC system, for each style of faucet Compute the estimated overhead costs per unit. Compute the estimated operating profit per unit. 1. 2.

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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Similar questions

Which of the following is a resource constraint? 1. machine hours available 2. sales commissions 3. cost per unit 4. budgeted overhead
Please answer both questions.
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Question: In cost accounting, what is the primary purpose of calculating the predetermined overhead rate? A) To allocate indirect costs to products based on a predetermined formula.B) To determine the actual overhead costs incurred during a specific production period.C) To calculate variable costs associated with each unit of production.D) To assess fixed costs that remain constant regardless of production levels.
Which of the following statement is not correct? Select one: а. FIFO method consider the beginning cost in its calculation of total cost of beginning work in process. b. FIFO used when work perform on the manufactured units is based on an order received. Ос. FIFO method is preferable to be used to get in detail information about the cost. d. FIFO consider work performed on all units that go through the department to be uniform.
The equivalent units for the FIFO unit cost represent: a. work done during the current period. b. work done during the current period and the previous period. c. work done on units completed during the current period. d. work done during the previous period. e. the same thing as the equivalent units for the weighted average unit cost.
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Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Office manager salary
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Need some help making a cheet sheet for an up coming test. please provide examples. The exam covers chapters 1 through 13. Here are some suggested study topics: Cost Classifications - variable, fixed and mixed, period and product, direct and indirect, opportunity, sunk, relevant, traceable, common, etc. Calculate the results of changes to cost assumptions (CVP) Calculate net income based on contribution margin values either dollars or % Application of Manufacturing Overhead - calculate predetermined overhead rate or activity rates applied to a product or job - job order using a predetermined overhead rate or rates and activity-based costing calculate over and underapplied overhead calculate adjusted cost of goods sold Job Costing What is the total cost of the job and average cost per unit. Cost of Goods Manufactured and cost of goods sold Calculate break even and target profit Create a contribution format income statement Gross margin calculations absorption or variable costing…
Can you give us the actual formula for determining the overhead rate and not just the two components without relating them to each other, please? That should then help you give a better explanation of how/why the overhead could be over or underapplied.
Which of the following cost and cost allocation base have a stronger cause and effect relationship? A) administration costs and cubic feet B) setup costs and square feet C) quality control costs and the number of inspections D) machine maintenance and setup hours