Ramos Company has identified the following overhead activities, costs, and activity drivers for the coming year: Ramos
Question:
Ramos Company has identified the following overhead activities, costs, and activity drivers for the coming year:
Ramos produces two models of dishwashers with the following expected prime costs and activity demands:
The company's normal activity is 4,000 direct labor hours.
Required:
1. Determine the unit cost for each model using direct labor hours to apply overhead.
2. Determine the unit cost for each model using the four activity drivers.
3. Which method produces the more accurate cost assignment?Why?
Transcribed Image Text:
Activity Expected Cost Activity Driver Setting up equipment Ordering costs Machine costs Receiving S120,000 90,000 210,000 100,000 Number of sctups Number of orders Machine hours Receiving hours Activity Capacity 300 9,000 21,000 5,000 Model A Model B Direct material Direct labor Units completed Direct labor hours Number of sctupS Number of orders Machine hours Receiving hours $150,000 $120,000 8,000 3,000 200 3,000 12,000 1,500 $200,000 $120,000 4,000 1,000 100 6,000 9,000 3,500
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
1 Overhead rate 5200004000 130 per direct labor hour Model A Model B Direct materials 150000 200000 ...View the full answer
Answered By
ANDREW KIPRUTO
Academic Writing Expert
I have over 7 years of research and application experience. I am trained and licensed to provide expertise in IT information, computer sciences related topics and other units like chemistry, Business, law, biology, biochemistry, and genetics. I'm a network and IT admin with +8 years of experience in all kind of environments.
I can help you in the following areas:
Networking
- Ethernet, Wireless Airmax and 802.11, fiber networks on GPON/GEPON and WDM
- Protocols and IP Services: VLANs, LACP, ACLs, VPNs, OSPF, BGP, RADIUS, PPPoE, DNS, Proxies, SNMP
- Vendors: MikroTik, Ubiquiti, Cisco, Juniper, HP, Dell, DrayTek, SMC, Zyxel, Furukawa Electric, and many more
- Monitoring Systems: PRTG, Zabbix, Whatsup Gold, TheDude, RRDtoo
Always available for new projects! Contact me for any inquiries
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
Question Posted:
Students also viewed these Managerial Accounting questions
-
Cummings Company has identified the following overhead activities costs and activity drivers for the coming year: The company produces several different subassemblies used by other manufacturers....
-
The investment committee of a company has identified the following seven projects with positive NPVs. If the board of directors has approved a $3 million capital budget for the current period, which...
-
The investment committee of a company has identified the following seven projects with positive NPVs. If the board of directors has approved a $4.5 million capital budget for the current period,...
-
Figure 20.3 describes the Medicare Part D prescription drug benefi t. Look at the Web page www.partd-medicare.com/ in your area and determine the marginal coinsurance rates applicable in each...
-
Steven established a sole proprietorship in 2009. He sold 1231 assets at a loss in 2012 and 2013. He had only sold 1231 assets at a gain before 2012. In 2014, he could sell a 1231 asset at a gain...
-
Discuss the hierarchical structure of taxonomy, from domain to species, and how modern phylogenetic techniques are used to refine these classifications. How do molecular phylogenetics influence...
-
What is the Magnus effect?
-
A volume of air(assumed to be an ideal gas) is first cooled with out changing its volume and then expanded without changing its pressure, as shown by the path abc in Fig. 19.30. (a) How does Ute...
-
Workplace safety has economic, reputational, and ethical implications. What do you think these implications may be? what are the best aspects in employment law in the workplace?
-
8 91426 10 11 (CCM) builds furniture for a range of commercial customers. They build furniture used in hotels and department stores, on cruise liners, ferries and passenger aircraft. One of their...
-
Whittington Company produces two types of leather purses: standard and handcrafted. Both purses use equipment for cutting and stitching. The equipment also has the capability of creating standard...
-
Friendly Bank is in the process of implementing an activity-based costing system. A copy of an interview with the manager of Friendlys credit card department follows:. Question 1: How many employees...
-
In the article Explaining an Unusual Allergy, appearing on the Everyday Health Network, Dr. A. Feldweg explained that allergy to sulfites is usually seen in patients with asthma. The typical reaction...
-
Company EJ plans to build a new plant to manufacture bicycles. EJ sells its bicycles in the world market for $400 per bike. It could locate the plant in Province P, which levies a 20 percent tax on...
-
II. The Table below gives an individual's MUx and MUy schedule. Suppose X and Y are the only two commodities available and Px = P2 while Py = P1. The individual's income is P12 and is all spent. Q...
-
A particular sine wave has the equation v = 12 sin 0. The rms voltage for this wave is shon formula, sub. V. cale. Refer to the oscilloscope trace in Figure 1. If the VOLTS/DIV control is set to 2...
-
Think about your fictional business. Answer the following question - "What basic safeguards should your organization have in place to minimize the possibility of a security event?". This should be at...
-
A cannon ball is fired horizontally at a speed of 150 ms from the top of a cliff that is 50 m high. 50 m How far from the base of the cliff will the cannon ball land? A. 1400m C. 670 m D. 725 m...
-
What are the benefits of using an industry beta instead of a company beta when undertaking a capital budgeting analysis? Explain, using an example.
-
Flicker, Inc., a closely held corporation, acquired a passive activity this year. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were...
-
Using the data collected by La Porta et al., cited in this chapter, compare shareholder and creditor rights in India and in Brazil. Interpret the differences you observe.
-
Hirams Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern...
-
Hirams Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern...
-
Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathfinder. Data concerning these two product lines appear below: The company has a traditional costing system in which...
-
A 10-kg green ball and a 2-kg purple ball collide. Before the collision, the green ball's velocity is +2.0 m/s, and the purple ball's is -4.0 m/s. After the collision, the purple ball's velocity is...
-
what ways does organizational culture, encompassing values, norms, and leadership styles, influence team cohesion, morale, and productivity, and how can organizations cultivate a culture that...
-
A large helium filled balloon is used as the center piece for an advertising display. The balloon alone has a mass of 225 kg and it is filled with helium gas until its volume is 326 m.
Study smarter with the SolutionInn App