Zhedong plans to use activity-based costing to determine its product costs. The total factory overhead cost is as follows Department Factory Overhead Production Support ¥1,225,000 Production (factory overhead only) 175,000 Total cost ¥1,400,000 Production Support Department Budgeted Activity Cost Setup ¥428,750 Production control 245,000 Quality control 183,750 Materials management 367,500 Total ¥1,225,000 And, Zhedong estimated the following activity-base usage and units produced for each of its three products:(image below) Instructions 1. Determine the factory overhead cost per unit for the LCD TV, tablet, and smartphone under the single plantwide factory overhead rate method. Use direct labor hours as the activity base. 2. Determine the factory overhead cost per unit for the LCD TV, tablet, and smartphone under activity-based costing. Round your answers to two decimal places. 3. Which method provides more accurate product costing? Why
Zhedong plans to use activity-based costing to determine its product costs. The total
|
Department Factory Overhead Production Support ¥1,225,000 Production (factory overhead only) 175,000 Total cost ¥1,400,000 |
Production Support Department Budgeted Activity Cost Setup ¥428,750 Production control 245,000 Quality control 183,750 Materials management 367,500 Total ¥1,225,000 |
And, Zhedong estimated the following activity-base usage and units produced for each of its three products:(image below)
Instructions
1. Determine the factory overhead cost per unit for the LCD TV, tablet, and smartphone under the single plantwide factory overhead rate method. Use direct labor hours as the activity base.
2. Determine the factory overhead cost per unit for the LCD TV, tablet, and smartphone under activity-based costing. Round your answers to two decimal places.
3. Which method provides more accurate product costing? Why?
Step by step
Solved in 2 steps
