XYZ Co. produces two different products (Product Y and Product Z) using two different activities:Machining, which uses machine hours as an activity driver, and Inspection, which uses number ofbatches as an activity driver. The cost of Machining is $500,000, while the cost of Inspection is $30,00Product Y uses 20% of total machine hours and 75% of total batches. What is the total Machining costassigned to Product Y?O a.None of the given answer is correct.O b. $100,000O c.$375,000O d. $7,500O e. $22,500NEXT PAGEPOREscFtockF1F2F4FBF6F7F8F9F102324%&3.6.7V8ISCF 1G HKL.3CV B y NiM

Given information cost of machining = $500,000 Product Y uses 20% of total machine hours Under…

XYZ Co. produces two different products (Product Y and Product Z) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $500,000, while the cost of Inspection is $30,00m Product Y uses 20% of total machine hours and 75% of total batches. What is the total Machining cost assigned to Product Y? O a. None of the given answer is correct. O b. $100,000 Oc. $375,000 O d. $7,500 $22,500

XYZ Co. produces two different products (Product Y and Product Z) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $500,000, while the cost of Inspection is $30,00m Product Y uses 20% of total machine hours and 75% of total batches. What is the total Machining cost assigned to Product Y? O a. None of the given answer is correct. O b. $100,000 Oc. $375,000 O d. $7,500 $22,500

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

2..
Two separate processes are being considered for manufacturing a product. Process A has fixed costs of $12,000 and variable costs of $6 per unit. Process B has fixed costs of $16,000 and variable costs of $4 per unit. a. What is the break-even quantity for the two processes (Show your work)? b. Which process would be more cost-effective for producing 1,000 units? c. Which process would be more cost-effective for producing 3,000 units?
Beerfield Company manufactures product M in its factory. Production of M requires 2 pounds of material P, costing $10 per pound and 0.5 hour of direct labor costing, $16 per hour. The variable overhead rate is $14 per direct labor hour, and the fixed overhead rate is $18 per direct labor hour. What is the standard product cost for product M? Direct material Answer Direct labor Answer Variable overhead Answer Fixed overhead Answer Standard product cost per unit Answer
XYZ Co. produces two different products (Product Y and Product Z) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $500,000, while the cost of Inspection is $30,000. Product Y uses 20% of total machine hours and 75% of total batches. What is the total Machining cost assigned to Product Z? O a. $7,500 O b. None of the given answer is correct. Oc. $22,500 О с. O d. $400,000 O e. $375,000
Jefferson, Inc. produces two different products (Product 5 and Product Z) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $139,400, while the cost of Inspection is $38,640. The activity drivers are used as follows: Product 5: (machine hours= 1,394) (number of batches 51) Product Z: (mahine hours= 2,706) (number of batches 18) Totals: (Machine hours= 4,100) (number of batches 69) What proportion of Machining activity is used by Product 5?
Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, has the following standard cost per unit: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 2.40 ounces $ 18.00 per ounce $ 43.20 Direct labor 0.70 hours $ 14.00 per hour 9.80 Variable manufacturing overhead 0.70 hours $ 3.00 per hour 2.10 Total standard cost per unit $ 55.10 During November, the following activity was recorded related to the production of Fludex: Materials purchased, 12,000 ounces at a cost of $198,000. There was no beginning inventory of materials; however, at the end of the month, 3,200 ounces of material remained in ending inventory. The company employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average of 160 hours at an average pay rate of $12.00 per hour. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours.…
9. Calverton, Inc. produces two different products (Standard and Luxury) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $780,000, while the cost of Inspection is $46,800. Standard is assigned $452,400 in Machining cost, and $35,568 in Inspection cost. What proportion of Inspection activity is used by Luxury? 00:41:23 Multiple Choice 32% 24% 69% 66% ( Prev 9 of 10 Next > MacBook Pro %23 96 2 3 4 6 8 Q E R P A D G H J K > V M command command option O O O
Tri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total overhead of $300,000 has traditionally been allocated by direct labor hours, with 150,000 hours for the Standard and 50,000 hours for the Extreme. After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $200,000 of overhead, with 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product. It was also estimated that the setup cost pool would have $100,000 of overhead, with 1,000 hours for the Standard and 1,500 hours for the Extreme. Required: Calculate the amount of overhead assigned per product, under traditional and under ABC costing.
Qriole Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, William Brown, has developed the following information: Estimated wheels produced Direct labour hours per wheel Car Car wheels $ Truck 45,000 11,000 4 Total estimated overhead costs for the two product lines are $1,340,000. Calculate the overhead cost assigned to the car wheels and truck wheels, assuming that direct labour hours are used to allocate overhead costs. 8 180,000
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production 16,000 units 53,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $34 in direct materials per unit, and Sprockets require $13. b. The direct labor wage rate is $19 per hour. 0.80 0.40 c. Hubs require special equipment and are more complex to manufacture than Sprockets. d. The ABC system has the following activity cost pools: Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 26,910 $ 120,000 $ 330,800 Required: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system. Hubs 130 4,000 NA Activity Sprockets 104 0 ΝΑ Total 234 4,000 ΝΑ
Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $580 per batch. The activity drivers are used as follows: Product A: (machine hours= 1,200) (number of batches 55) Product X: (mahine hours= 3,200) (number of batches 18) Totals: (Machine hours= 4,400) (number of batches 73) What is the amount of Machining cost assigned to Product X?
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Hubs Sprockets Additional information about the company follows: a. Hubs require $36 in direct materials per unit, and Sprockets require $10. b. The direct labor wage rate is $13 per hour. c. Hubs require special equipment and are more complex to manufacture than Sprockets. d. The ABC system has the following activity cost pools: 0.80 0.40 Annual Production 20,000 units 50,000 units Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Required 1 Required 2 Required: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system. Complete this question by entering your answers in the tabs below. Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special…