option D i.e $ 978607 is the correct answer. further explanation
is given below:
Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing...
Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing system. The following are the activities, budgeted total cost and cost drivers per activity for the year 20x9: Activity Budgeted Cost Cost Base Cost Base Volume Assembly $891922 # of DL hours 34289 Inspection $657733 # of units 23317 Shipping $322225 # of batches 182 Plaid Manufacturing has budgeted to produce 3,000 units of G1. G1 is manufactured in batches of 72 units and...
Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing system. The following are the activities, budgeted total cost and cost drivers per activity for the year 20x9: Activity Budgeted Cost Cost Base Cost Base Volume Assembly $877831 # of DL hours 37167 Inspection $668988 # of units 20830 Shipping $339555 # of batches 186 Plaid Manufacturing has budgeted to produce 3,000 units of M1. M1 is manufactured in batches of 80 units and...
Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing system. The following are the activities, budgeted total cost and cost drivers per activity for the year 20x9: Activity Budgeted Cost Cost Base Cost Base Volume Assembly $864585 # of DL hours 36772 Inspection $664181 # of units 20927 Shipping $349574 # of batches 189 Plaid Manufacturing has budgeted to produce 3,000 units of G1. G1 is manufactured in batches of 73 units and...
o different activities: Machining, which uses machine hours as Washington, Inc. produces two different products (Product Cand Product 2) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $682,000, while the cost of Inspection is $42,265. The activity drivers are used as follows: Machine hours Number of batches Product C 1,300 55 Product 2 3,100 24 Total 4,400 79 What...
Goodwin Co, manufactures two products: R and W. The company uses activity-based costing to apply manufacturing overhead costs to products. The cost pools and related estimated overhead costs for 20x3 are as follows: Activity Cost Activity measure Overhead cost Pool Assembly Number of direct labour $33289 hours Inspection Number of inspections 153569 Product support Number of engineers 247332 The expected activity measures for the manufacturing of product R in 20x3 are: 135 direct labour hours, 4548 inspections, and 2 engineer(s)....
1.Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,600 units and of Product B is 950 units. There are three activity cost pools, with estimated costs and expected activity as follows: Activity Cost Pools Estimated Overhead Cost Expected Activity Product A Product B Total Activity 1 $ 38,241 1,100 1,000 2,100 Activity 2 $ 58,551 2,100 800 2,900 Activity 3 $ 72,702 640 620 1,260 The...
Activity Based Costing Activity Based Costing Help Save & Exit Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Indirect Tabor $320,000 Indirect Materials Other Overhead Part 2 of 3 Production Activity Grinding Polishing Product modification Providing power System calibration $135,000 600,000 $255,000 500,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power Systen calibration 1,500 engineering hours 17,000 direct...
Windsor Company uses an activity-based costing system. It has the following manufacturing activity areas, related drivers used as allocation bases, and cost allocation rates: Cost Allocation Rate $ 40 0.4 Cost Driver Number of setups Number of parts Machine hours Direct labour hours Number of finished units Activity Machine setup Material handling Machining Assembly Inspection During the month, 100 units were produced, requiring 2 setups. Each unit consisted of 21 parts and used 1.4 direct labour hours and 1.25 machine...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company consisted of the following activities and costs: Setup (1,000 setup hours) $ 146,000 Production scheduling (400 batches) 60,000 Production engineering (60 change orders) 90,000 Supervision (2,000 direct labor hours) 56,000 Machine maintenance (12,000 machine hours) 96,000 Total activity costs $ 448,000 The following additional data were provided for Job 845: Direct material costs $ 8,000 Direct labor cost (5 Milling direct labor hours; 35 Finishing direct labor hours)...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company consisted of the following activities and costs: Setup (1,000 setup hours) $ 146,000 Production scheduling (400 batches) 60,000 Production engineering (60 change orders) 90,000 Supervision (2,000 direct labor hours) 56,000 Machine maintenance (12,000 machine hours) 96,000 Total activity costs $ 448,000 The following additional data were provided for Job 845: Direct material costs $ 8,000 Direct labor cost (5 Milling direct labor hours; 35 Finishing direct labor hours)...