| Answer = 1 | ||||||||
| Step 1: Calculation of the Activity Cost Driver Rate | ||||||||
| Activity Cost Driver Rate = Activity Cost / Cost Driver | ||||||||
| Activity Cost / Cost Driver = | ||||||||
| Activity | Cost Driver | Activity Cost | "/" | Cost Driver | " = " To | Cost Driver Rate | ||
| Assembly | Direct Labor hours | $ 1,58,760 | "/" | 2,940 | " = " To | $ 54.00 | ||
| Test and Pack | Direct Labor hours | $ 1,13,925 | "/" | 3,255 | " = " To | $ 35.00 | ||
| Total | $ 2,72,685 | |||||||
| Answer = 2 | ||||||||
| CALCULATION OF TOTAL FACTORY OVERHEAD AND PER UNIT | ||||||||
| Activity | Product | Cost Driver Used | "X " By | Cost Driver Rate | " = " To | Activity Cost | ||
| Blender | Direct Labor hours | |||||||
| Assembly | 675 | "X " By | $ 54.00 | " = " To | $ 36,450 | |||
| Test and pack | 2,440 | "X " By | $ 35.00 | " = " To | $ 85,400 | |||
| TOTAL | $ 1,21,850 | |||||||
| Divide by | "/" By | |||||||
| Number of units of production | $ 8,160 | |||||||
| Factory overhead per unit= | $ 14.93 | |||||||
| Toaster Oven | Direct Labor hours | |||||||
| Assembly | 2,265 | "X " By | $ 54.00 | " = " To | $ 1,22,310 | |||
| Test and pack | 815 | "X " By | $ 35.00 | " = " To | $ 28,525 | |||
| TOTAL | $ 1,50,835 | |||||||
| Divide by | "/" By | |||||||
| Number of units of production | $ 8,160 | |||||||
| Factory overhead per unit= | $ 18.48 | |||||||
Total The direct labor information for the production of 8.160 units of each product is as...
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Multiple Production Department Factory Overhead Rate Method Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: $186,000 Assembly Department Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department Test and...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: i Assembly Department $275,736.00 Test and Pack Department 2 201,046.00 Total 3 $476,782.00 The direct labor information for the production of 8,390 units of each product is as follows: Department Assembly Test and Pack Blender 740 dih 2,040 dih Toaster oven 2,205 680 Total...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: $186,000 Assembly Department Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department Test and Pack Department Blender 750 dlh 2,250 dlh Toaster oven 2,250 750 Total 3,000 dlh...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: $186,000 Assembly Department Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department Test and Pack Department Blender 750 dlh 2,250 dlh Toaster oven 2,250 750 Total 3,000 dlh...
Me- QuaignmentSessionLocator&i... > eBook Calculator Activity-Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory ove sad is as follows: Assembly Department Test and Pack Department $186,000 120,000 $306,000 Total The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department 750 din Blender Toaster...
Multiple Production Department Factory Overhead Rate Method Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: Assembly Department $896,000 Test and Pack Department 608,000 Total $1,504,000 The direct labor information for the production of 5,700 units of each product is as follows: Assembly Department Test and Pack Department Blender 4,000 dlh 12,000 dlh...
B. Blender, $23.60 per unit EX 18-15 Activity-based costing and product cost distortion The management of Four Finger Appliance Company in Exercise 14 has asked activity-based costing instead of direct labor hours to allocate factory overhead two products. You have determined that $81,000 of factory overhead from each of tion departments can be associated with setup activity ($162,000 in total). Com indicate that blenders required 135 setups, while the toaster ovens required only Each product has a production volume of...
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: 1 Assembly Department $275,736.00 2 Test and Pack Department 201,046.00 3 Total $476,782.00 The direct labor information for the production of 8,390 units of each product is as follows: Department Assembly Test and Pack Blender 740 dlh 2,040 dlh Toaster oven 2,205 680 Total...
Activity-Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: Assembly Department $287,700 Test and Pack Department 144,700 Total $432,400 The direct labor information for the production of 3,900 units of each product is as follows: Assembly Department Test and Pack Department Blender 3,250 dlh 9,750 dlh Toaster...
Activity-Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: Assembly Department $186,000 Test and Pack Department 120,000 $306,000 Total The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department Test and Pack Department 2,250 dlh Blender 750 dlh Toaster...