A company manufacturing two products furnishers the following data for a year:ProductAnnualTotalTotal numberTotalOutput (units)of purchaseordersmachinenumber ofhoursset upsA75012008515B450800115101200200020025The annual overheads are as under:Volume related activity costsRO 55000Set up related costsRO 120000Purchase related costsRO 85000TotalRO 260000You are required to calculate the cost per unit of each product A and B based on:a. Traditional method of charging overheadsb. Activity based costing method

Cost allocation is a process of assigning or allocating indirect cost to each and every unit using a…

A company manufacturing two products furnishers the following data for a year: Product Annual Output (units) Total Total number Total machine of purchase number of hours orders set ups A 750 1200 85 15 B 450 800 115 10 25 1200 The annual overheads are as under: 2000 200 Volume related activity costs RO 55000 Set up related costs RO 120000 Purchase related costs RO 85000 Total RO 260000 You are required to calculate the cost per unit of each product A and B based on: a. Traditional method of charging overheads b. Activity based costing method

A company manufacturing two products furnishers the following data for a year: Product Annual Output (units) Total Total number Total machine of purchase number of hours orders set ups A 750 1200 85 15 B 450 800 115 10 25 1200 The annual overheads are as under: 2000 200 Volume related activity costs RO 55000 Set up related costs RO 120000 Purchase related costs RO 85000 Total RO 260000 You are required to calculate the cost per unit of each product A and B based on: a. Traditional method of charging overheads b. Activity based costing method

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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Cost Behavior SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $539,780 + $1.32X, where X equals number of smokers. Last year, SmokeCity produced 19,700 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? For questions 2-4, Enter the final answers rounded to the nearest dollar. 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year?
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Assume a company’s activity-based costing system contains an activity called Engineering Change Orders (ECOs). This activity cost pool includes a total of $151,000 in its numerator. One of the company’s products was charged $400 from this activity because it required two ECOs during the year. How many ECOs were used to calculate the ECO activity rate?
Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Direct labor hours Machine hours Overhead costs Multiple Choice Assume that the Assembly Department allocates overhead using a plantwide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 2 direct labor hour and 3.30 machine hours in the Assembly Department, and 4.50 direct labor hours and 0.4 machine hours in the Finishing Department? O$17.60. Assembly 180,000 DLH 380,000 MH $380,000 $20.40. Finishing 148,000 DLH 91, 200 MH $562, 400
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A company makes two products—Product A and B. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Product A 0.75 20,000 units Product B 0.50 50,000 units Additional information is as follows: Product A requires $40 in direct materials per unit, and Product B requires $32. The direct labor wage rate is $18 per hour. The company’s activity-based absorption costing system has the following activity cost pools: Activity Cost Pool (and Activity Measures) Estimated Overhead Cost Expected Activity Product A Product B Total Machine setups (number of setups) $ 100,000 100 300 400 Special processing (machine-hours) $ 200,000 2,000 6,000 8,000 General factory (Direct labor-hours) $ 150,000 15,000 25,000 40,000
How do I determine the cost of one unit each of SW100 and SG150, assuming a company wide overhead rate is used based on total machine hours? Round rate to two decimal places.
Alpesh
Olmo, Inc., manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of K0 is 600 units and of Product H9 is 600 units. The company has an activity- based costing system with the following activity cost pools, activity measures, and expected activity. Activity Measures Overhead Cost Product KO Estimated Expected Activity Activity Cost Pools Labor-related Production orders Product H9 Total 9,000 1,300 6,800 DLHS $ 550,408 53,419 836,016 6,000 700 3,800 3,000 orders 600 Order size MHs 3,000 $1,439,843 The overhead applied to each unit of Product KO under activity-based costing is closest to: (Round your Intermedlate calculations to 2 declmal places.) Multiple Cholce $611.60 per unlt $1.438.16 per unit. $778.62 per unit C479 95 nerınlt 3 自! 92°F AQI 61 9/9 pe here to search DELL
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Rex Industries has two products. They manufactured 12,540 units of product A and 8,255 units of product B. The data are: Activity in Estimated Cost Pool Overhead Product A Product B 1 $51,850 1,100 600 53,840 100 700 3 24,600 700 5,300 What is the activity rate for each cost pool? Round your answers to two decimal places. Activity in Activity Cost Pool Rate 1 $ 2 $ 3 $
Sunland Co. gathered the following information on power costs and factory machine usage for the last six months: Power Cost Factory Machine Hours $28,390 15,800 36,069 21,400 32,895 18,700 ITT 26,235 15,100 23,890 13,500 20,700 Month January February March April May June Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers. (a) Your answer is correct. What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.) Variable power costs $ (b) eTextbook and Media * Your answer is incorrect. 10.500 Fixed power costs What is the estimated fixed power cost each month? High 1.41 per factory machine hour 20,683 $ Low Attempts: 1 of 5 used