Need help with this question X Company has two production departments, 1 and 2. Listed below arebudgeted information for the two departments, and actual informationfor one of its products, Product X:All Products Product XDepartment 1Overhead$4,500,000Direct labor$600,000$10,800Direct labor hours 40,000720Machine hours100,0001,020Units produced59,000630Department 2Overhead$2,200,000Direct labor$600,000$3,840Direct labor hours 40,000256Machine hours130,000850Units produced39,000630Using a plant-wide allocation system with direct labor hours as the costdriver, what was the allocation to Product X?

Step 1: Compute the overhead rate under the plant-wide allocation system by dividing the total…

Answered: X Company has two production…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...

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A manufacturing company has two service and two production departments. Human Resources and Machine Repair are the service departments. The production departments are Grinding and Polishing. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The human resources department services all departments of the company, and its costs are allocated using the numbers of employees within each department, while machine repair costs are allocable to Grinding and Polishing on the basis of machine hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
PQR Company produces two items that go through two departments, production and packing. Details are as below: Product A Product B Material cost per unit Direct Labour cost per unit Actual Units produced Actual machine hours used Rs 2 Rs 3 Rs 1 Rs 1.5 50 million 10 million 4,000 500 Direct Labour hours 800 100 Data for production and packing department is as follows: Production Department Production Department Expected Manufacturing OH Rs 50,000,000 Rs 25,000,000 Cost Driver Machine Hours Labour Hours Budgeted Cost Driver 5,000 machine hours 1,000 labour hours Calculate total per unit cost of Product A and Product B as well as over and under absorption if Actual Overheads at the end of the period were Rs 65 million.
Product X is obtained after it passes through three distinct processes. The following cost information is available for the operation. Total Process 1 Process 2 Process 3 Direct materials added $15,084 $5,200 $3,960 $5,924 Direct wages 18,000 4,000 6,000 8,000 Production overhead 18,000 1,000 units @ $6.00 per unit were introduced in Process 1. Production overhead is to be distributed as a percentage of direct wages. Actual Output Units Normal Loss Scrap Value per Unit Process 1 950 5% $4.00 Process 2 840 10% $8.00 Process 3 750 15% $10.00 Prepare the process accounts and post your responses in the Discussion Forum.
XYZ Corporation manufactures three products with the following details: Product X Product Y Product Z Total Units produced Materials in kg 200,000 350,000 100,000 350,000 50,000 100,000 50,000 200,000 Labor hours 25,000 20,000 16,000 61,000 Equipment Set Ups Number of production batches 50 20 10 80 10,000 2,000 10,000 22,000 Total Costs Materials P 700,000 Labor 1,220,000 Equipment Set Ups Batch packaging 88,000 176,000 Other fixed costs to be allocated based on labor hours If XYZ uses ABC to improve the pricing of its products and it aims to have a 45% gross profit rate, what would the selling price of a unit of Product Y be?
The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Blinks Dinks Number of Labor Hours Units Per Unit 949 1,818 O a. $112.35 b. $475.56 c. $8.47 d. $44.93 5 2 Machine Hours Per Unit 5 9 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $93,200. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $95,100. The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Blinks?
Steven Co. has two products: A and B. The following is information about the machine hour activity in its factory: Line Item Description Estimated cost Estimated activityProduct A Estimated activityProduct B Total Machine Hours $17,500 760 260 1,020
Product Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Blinks Dinks Number of Direct Labor Hours Machine Hours Units Per Unit Per Unit 990 2,086 4 Oa. $41.28 Ob. $358.83 Oc. $13.04 Od. $51.60 3 gnmentSession Locator=&inprogress=false 8 5 凸☆ All of the machine hours take place in the Fabrication department, which has an estimated overhead of $86,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $89,700. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Dinks is Previous B Next
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Fleurant, Incorporated, manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product W2 Product P8 Total direct labor-hours Expected Production 400 800 Activity Cost Pools Labor-related Production orders Order size Direct Labor- Hours Per Unit 8 4 The direct labor rate is $43.10 per DLH. The direct materials cost per unit is $209.60 for Product W2 and $146.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Estimated Overhead Cost Activity Measures DLHS orders MHS $ 224,576 19, 138 249,086 $ 492,800 The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Total Direct Labor-Hours 3,200 3,200 6,400…
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