(a) Introduction: The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products on the basis of resources used in manufacturing the products. To compute: The overhead assigned using the traditional costing system to the leather case line.

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Answer 1

Question

Chapter 4, Problem 13E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products on the basis of resources used in manufacturing the products.

To compute:

The overhead assigned using the traditional costing system to the leather case line.

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the leather case line using ABC.

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the leather case over or undercosted by the traditional cost system compared to ABC

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Fiona Industries plans to produce 30,000 units next period at a denominator activity of 60,000 direct labor hours. The direct labor wage rate is $16.50 per hour. The company's standards allow 2.2 yards of direct materials for each unit of product; the material costs $10.50 per yard. The company's budget includes a variable manufacturing overhead cost of $3.25 per direct labor hour and fixed manufacturing overhead of $285,000 per period. Using 60,000 direct labor hours as the denominator activity, compute the predetermined overhead rate and break it down into variable and fixed elements.

Solve this question and accounting

Answer 2

Question

Chapter 4, Problem 13E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products on the basis of resources used in manufacturing the products.

To compute:

The overhead assigned using the traditional costing system to the leather case line.

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the leather case line using ABC.

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the leather case over or undercosted by the traditional cost system compared to ABC

Expert Solution & Answer

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Answer 3

Question

Chapter 4, Problem 13E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products on the basis of resources used in manufacturing the products.

To compute:

The overhead assigned using the traditional costing system to the leather case line.

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the leather case line using ABC.

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the leather case over or undercosted by the traditional cost system compared to ABC

Expert Solution & Answer

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Answer 4

Question

Chapter 4, Problem 13E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products on the basis of resources used in manufacturing the products.

To compute:

The overhead assigned using the traditional costing system to the leather case line.

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the leather case line using ABC.

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the leather case over or undercosted by the traditional cost system compared to ABC

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 13E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products on the basis of resources used in manufacturing the products.

To compute:

The overhead assigned using the traditional costing system to the leather case line.

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the leather case line using ABC.

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the leather case over or undercosted by the traditional cost system compared to ABC

Answer 6

Chapter 4, Problem 13E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products on the basis of resources used in manufacturing the products.

To compute:

The overhead assigned using the traditional costing system to the leather case line.

Answer 7

Chapter 4, Problem 13E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products on the basis of resources used in manufacturing the products.

To compute:

The overhead assigned using the traditional costing system to the leather case line.

Answer 8

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the leather case line using ABC.

Answer 9

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the leather case line using ABC.

Answer 10

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the leather case over or undercosted by the traditional cost system compared to ABC

Answer 11

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the leather case over or undercosted by the traditional cost system compared to ABC

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 4 - What is the difference between a volume-based cost...Ch. 4 - Explain the statement that traditional costing...Ch. 4 - Prob. 3Q Ch. 4 - How does activity-based costing differ from...Ch. 4 - What types of business might use activity-based...Ch. 4 - Prob. 6Q Ch. 4 - Prob. 7Q Ch. 4 - Prob. 8Q Ch. 4 - Why must costs be classified into different...Ch. 4 - Prob. 10Q

Solution Summary: The author explains how the traditional costing system allocates overheads on the basis of direct labor hours consumed, or machine hour used. ABC system helps in finding the total cost of activities that are necessary to make a product.

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