Homework Answers
| OVERHEAD RATE | OVERHEAD ALLOCATION TO PRODUCT A | |||||||||
| Activity | Overhead cost | / | Total estimated activity | = | Overhead rate | Overhead rate | * | Actual activity used | = | Overhead allocated |
| Set up | 115000 | 166000+180000=346000 | .33237 | .33237 | 166000 | 55173.42 | ||||
| Machine maintenance | 150000 | 4000+2400=6400 | 23.4375 | 23.4375 | 4000 | 93750 | ||||
| Total indirect cost | 148923.42 | |||||||||
| Number of units | 640 | |||||||||
| Overhead cost per unit | 148923.42/640 = 232.69 per unit | |||||||||
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Denard Inc. is considering the use of activity based costing. The following information was gathered: Activity...
Ornate Co. manufacturers two products and uses activity based costing to allocate indirect costs. Activity Set...
Ornate Co. manufacturers two products and uses activity based costing to allocate indirect costs. Activity Set up Material orders and receiving Total indirect costs Overhead Alloc. Base 60,000 #set ups $ 48,000# purch orders $ 108,000 Direct labor hours Number of setups Number of purchase orders units produced Lo-Shine 1,000 400 1,800 Hi-Shine 7,000 235 780 75 174 If Ornate Co. uses activity based costing, what is the indirect cost per unit (overhead per unit) for Hi-Shine?
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the...
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $ 7 per direct labor-hour $ 5 per machine-hour $ 35 per setup $ 160 per order $ 125 per shipment $ 800 per product Activity data have been supplied for the following two products: Total Expected Activity K425...
Calculator Activity-Based Costing and Product Cost Distortion Handbrain Inc. is considering a change to activity-based product...
Calculator Activity-Based Costing and Product Cost Distortion Handbrain Inc. is considering a change to activity-based product costing. The company produces two products, cell phones and tablet PCs, in a single production department The production department is estimated to require 4,000 direct labor hours. The total indirect laboris budgeted to be $686,400. Time records from Indirect labor employees revealed that they spent 60% of their time setting up production runs and 40% of their time supporting actual production The following information...
Activity-Based Costing and Product Cost Distortion Digital Storage Concept Inc. is considering a change to activity-based...
Activity-Based Costing and Product Cost Distortion
Digital Storage Concept Inc. is considering a change to
activity-based product costing. The company produces two products,
cell phones and tablet PCs, in a single production department. The
production department is estimated to require 4,000 direct labor
hours. The total indirect labor is budgeted to be $504,000.
Time records from indirect labor employees revealed that they
spent 60% of their time setting up production runs and 40% of their
time supporting actual production.
The...
answer the following question. Assignment #3 Candy Corporation is considering the use of activity-based costing. The...
answer the following question.
Assignment #3 Candy Corporation is considering the use of activity-based costing. The following information is provided for the production of two product lines Activity Sct-up Machine Maintenance Total Indirect Manufacturing Cost Cost $450.200 $150,000 S600.200 Cost Driver Number of Sct-us Machine Hours Product Production Summary: Product Total Direct Labor Hours 10.000 24.000 Number of Sct-ups 1400 Number of Machine Hours 12.000 3.000 5,000 The company plans on producing the following units of each product: Product Planned...
Brief Exercise 17-6 Weisman, Inc. uses activity-based costing as the basis for information to set prices...
Brief Exercise 17-6
Weisman, Inc. uses activity-based costing as the basis for
information to set prices for its six lines of seasonal coats.
Activity Cost Pools
Estimated
Overhead
Expected Use of
Cost Drivers per Activity
Designing
$438,000
13,700
designer hours
Sizing and cutting
4,110,000
166,000
machine hours
Stitching and trimming
1,440,000
78,000
labor hours
Wrapping and packing
325,000
35,000
finished units
Compute the activity-based overhead rates using the following
budgeted data for each of the activity cost pools.
(Round answers...
Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting...
Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $238,510 Machine hours Assembly 200,940 Direct labor hours Inspecting 31,360 Number of inspections Setup 51,840 Number of setups Materials handling 35,200 Number of loads Corporate records were obtained to estimate the amount of activity...
41. Activity-Based Costing Versus Traditional Approach, Activity-Based Management. Fine Finishing, Inc, produces a wood desk that...
41. Activity-Based Costing Versus Traditional Approach, Activity-Based Management. Fine Finishing, Inc, produces a wood desk that sells for $500 and a wood table that sells for $900. Last year, total overhead costs of $6,000,000 were allocated based on direct labor costs. Direct labor costs totaled $2,000,000 last year, and the company produced 15,000 desks and 5,000 tables. Total direct labor and direct materials costs by product for last year were as follows: Desk Table Direct materials $1,575,000 $950,000 Direct labor...
Activity-Based Costing and Product Cost Distortion Handbrain Inc. is considering a change to activity-based product costing....
Activity-Based Costing and Product Cost Distortion Handbrain Inc. is considering a change to activity-based product costing. The company produces two products, cell phones and tablet PCs, in a single production department. The production department is estimated to require 4,000 direct labor hours. The total indirect labor is budgeted to be $595,200. Time records from indirect labor employees revealed that they spent 40% of their time setting up production runs and 60% of their time supporting actual production. The following information...
Activity Rates and Product Costs using Activity-Based Costing Garfield Inc. manufactures entry and dining room lighting...
Activity Rates and Product Costs using Activity-Based Costing Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity Budgeted Activity Cost Activity Base Casting $346,150 Machine hours Assembly 214,130 Direct labor hours Inspecting 37,600 Number of inspections Setup 38,920 Number of setups Materials handling 31,590 Number of loads Corporate records were obtained to estimate the amount of activity...
Ornate Co. manufacturers two products and uses activity based costing to allocate indirect costs. Activity Set up Material orders and receiving Total indirect costs Overhead Alloc. Base 60,000 #set ups $ 48,000# purch orders $ 108,000 Direct labor hours Number of setups Number of purchase orders units produced Lo-Shine 1,000 400 1,800 Hi-Shine 7,000 235 780 75 174 If Ornate Co. uses activity based costing, what is the indirect cost per unit (overhead per unit) for Hi-Shine?
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $ 7 per direct labor-hour $ 5 per machine-hour $ 35 per setup $ 160 per order $ 125 per shipment $ 800 per product Activity data have been supplied for the following two products: Total Expected Activity K425...
Calculator Activity-Based Costing and Product Cost Distortion Handbrain Inc. is considering a change to activity-based product costing. The company produces two products, cell phones and tablet PCs, in a single production department The production department is estimated to require 4,000 direct labor hours. The total indirect laboris budgeted to be $686,400. Time records from Indirect labor employees revealed that they spent 60% of their time setting up production runs and 40% of their time supporting actual production The following information...
Activity-Based Costing and Product Cost Distortion
Digital Storage Concept Inc. is considering a change to
activity-based product costing. The company produces two products,
cell phones and tablet PCs, in a single production department. The
production department is estimated to require 4,000 direct labor
hours. The total indirect labor is budgeted to be $504,000.
Time records from indirect labor employees revealed that they
spent 60% of their time setting up production runs and 40% of their
time supporting actual production.
The...
answer the following question.
Assignment #3 Candy Corporation is considering the use of activity-based costing. The following information is provided for the production of two product lines Activity Sct-up Machine Maintenance Total Indirect Manufacturing Cost Cost $450.200 $150,000 S600.200 Cost Driver Number of Sct-us Machine Hours Product Production Summary: Product Total Direct Labor Hours 10.000 24.000 Number of Sct-ups 1400 Number of Machine Hours 12.000 3.000 5,000 The company plans on producing the following units of each product: Product Planned...
Brief Exercise 17-6
Weisman, Inc. uses activity-based costing as the basis for
information to set prices for its six lines of seasonal coats.
Activity Cost Pools
Estimated
Overhead
Expected Use of
Cost Drivers per Activity
Designing
$438,000
13,700
designer hours
Sizing and cutting
4,110,000
166,000
machine hours
Stitching and trimming
1,440,000
78,000
labor hours
Wrapping and packing
325,000
35,000
finished units
Compute the activity-based overhead rates using the following
budgeted data for each of the activity cost pools.
(Round answers...
Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $238,510 Machine hours Assembly 200,940 Direct labor hours Inspecting 31,360 Number of inspections Setup 51,840 Number of setups Materials handling 35,200 Number of loads Corporate records were obtained to estimate the amount of activity...
41. Activity-Based Costing Versus Traditional Approach, Activity-Based Management. Fine Finishing, Inc, produces a wood desk that sells for $500 and a wood table that sells for $900. Last year, total overhead costs of $6,000,000 were allocated based on direct labor costs. Direct labor costs totaled $2,000,000 last year, and the company produced 15,000 desks and 5,000 tables. Total direct labor and direct materials costs by product for last year were as follows: Desk Table Direct materials $1,575,000 $950,000 Direct labor...
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