Question

Goog cost accounting axam questions-Google. Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at oompany headquarters have prepered costs for the two reels for the most recent period. The plant manager is concemed. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters Manufacturing overhead is curently assigned to products based on their direct labor oosts. For the most recent month, manufacturing overhead was $345,600. During that time the company produced 14,600 units of the M-008 and 2,800 units of the M-123. The direct costs of production were as follows M-008 M-123 $ 116,800 $112.000 116,800 Tetal $ 228,800 172.800 Drect materials Direct labor 56,000 Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows Adivity Level M-008 Cost Driver Number of machine-hours Number of production runs Number of inspections Costs $ 173,600 80.000 92,000 M-123 Total 10,000 40 65 2,000 20 45 8,000 20 20 Total overhead $345,000 Required a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? Round your intermediate calculations and final answers to 2 decimal places.) O Answer is complete but not entirely correct M-008 M-123 Total overhead Total unit cost 207,180.00s 138 395.00 14.19s s 4943 C bHow much of the overhead will be assigned to eech product if direct labor cost is used to atocane overhead? What is the total cost per unt produced for each product? RoundTotal unit cost to 2 decimal places O Answer is complete but not entirely correct M-008 M-123 s 233.800 s 112.000 ve d Tot n 16.00 40.00 C MacBook Air

Answer 1

DOakioen ABC allocation m-008 -123 10TCH Oveheads 20 7180 TO ral onitcost 138395 $ 30.19 $ 109.43 Unit Cost- TO TCH COst NO. OF Ontt puduced m008 14600 116800+ 116800t 207180 440780 4600 F 30.19 n123 12000 t 56000 + 138395) 2800 109.43 NOTE DiacCH mateaial t DIeCH labo taveahead TO10H 00st 2 Djacct Jabo cost all0cation M-008 -123 ITOTCL Ovexhead to To onit cost $ 2.33600 $1,12000 $ 100 32 D.mtD.L tOH) oTCOSt NO.OF Onit producad I6 32 m008-D16800 t 16800t 233600 14600 ri,12000 56000 1 L 12000 2g 00 M123