XYZ Electronics manufactures two large-screen smart television models: the Elite which sells for OMR 160 and a new model, the Superior, which sells for OMR 130. Annual production is 2000 units for the Elite and 8000 units for the Superior. The company's managers identified five activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Cost Driver Estimated Overhead Cost Expected Use of Cost Driver Per Television Activity Expected Use of Cost Drivers Elite Superior 1 Material handling Machine setups Quality inspections Quality control |Number of requisitions 135,000 OMR 127,500 OMR |Number of inspections 127,000 OMR |Number of inspections 189,500 OMR Supervising production Number of supervisors 120,000 OMR 3 Number of setups 2 3 10 6 4 18 12 6. 19000 9,000 10,000 Requirements: 1. Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. 2. Prepare a schedule assigning each activity's overhead cost to the two products.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%

C12 - Please solve all sub-part questions with all steps. Thanks

XYZ Electronics manufactures two large-screen smart television models: the Elite which sells
for OMR 160 and a new model, the Superior, which sells for OMR 130. Annual production is 2000
units for the Elite and 8000 units for the Superior.
The company's managers identified five activity cost pools and related cost drivers and accumulated
overhead by cost pool as follows.
Cost Driver
Estimated Overhead
Cost
Expected Use of Cost Driver
Per Television
Activity
Expected Use of
Cost Drivers
Elite
Superior
2
Material handling
Machine setups
Quality inspections
Quality control
Number of requisitions 135,000 OMR
|127,500 OMR
Number of inspections 127,000 OMR
|Number of inspections 189,500 OMR
Supervising production Number of supervisors 120,000 OMR
3
1
Number of setups
3
10
4
18
12
6
19000
9,000
10,000
Requirements:
1. Prepare a schedule showing the computations of the activity-based overhead rates per cost
driver.
2. Prepare a schedule assigning each activity's overhead cost to the two products.
Transcribed Image Text:XYZ Electronics manufactures two large-screen smart television models: the Elite which sells for OMR 160 and a new model, the Superior, which sells for OMR 130. Annual production is 2000 units for the Elite and 8000 units for the Superior. The company's managers identified five activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Cost Driver Estimated Overhead Cost Expected Use of Cost Driver Per Television Activity Expected Use of Cost Drivers Elite Superior 2 Material handling Machine setups Quality inspections Quality control Number of requisitions 135,000 OMR |127,500 OMR Number of inspections 127,000 OMR |Number of inspections 189,500 OMR Supervising production Number of supervisors 120,000 OMR 3 1 Number of setups 3 10 4 18 12 6 19000 9,000 10,000 Requirements: 1. Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. 2. Prepare a schedule assigning each activity's overhead cost to the two products.
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Capital Gains and Losses
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education