A manufacturer reports the following for its two products: Product 1 and Product 2. Product 1...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A manufacturer reports the following for its two products: Product 1 and Product 2. Product 1 requires 2 direct labor hours per unit and Product 2 requires 3 direct labor hours per unit. The company budgets 6,080 direct labor hours to be used, based on expected production of 2,320 units of Product 1 and 480 units of Product 2. Activity Setup Handling parts Inspection Total budgeted overhead Actual Activity Driver Usage Setups Parts Inspections Enter answers in the tabs below. Per Unit Budgeted Cost (Activity Driver) $ 157,520 (22 machine setups) 66,880 (16,000 parts) 97,500 (250 inspections) $ 321,900 Product 1 Product 2 Product 1 10 10,000 40 Required 1 Required 2 Use a plantwide overhead rate based on 6,080 direct labor hours to compute the overhead cost per unit for each product. Note: Do not round intermediate calculations. Round your final answers to 2 decimals. Overhead Cost per Unit S Product 2 6,000 210 3 Enter answers in the tabs below. Required 1 Required 2 Use activity-based costing to a) compute overhead activity rates, and b) allocate overhead cost to each product and compute overhead cost per unit for each product. Note: Do not round intermediate calculations. Round the final answers to 2 decimals. a. Compute overhead activity rates Activity Activity Rate 7,160.00 per setup Setup Handling parts 4.18 per part 390.00 per inspection Inspection b. Allocate overhead to each product and compute overhead cost per unit for each product Allocated Cost Activity Setup Handling parts Inspection Total allocated cost Units produced Overhead cost per unit $ $ $ $ $ Product 1 < Required 1 71,600 41,800 113,400 $ Product 2 Required 2 0 A manufacturer reports the following for its two products: Product 1 and Product 2. Product 1 requires 2 direct labor hours per unit and Product 2 requires 3 direct labor hours per unit. The company budgets 6,080 direct labor hours to be used, based on expected production of 2,320 units of Product 1 and 480 units of Product 2. Activity Setup Handling parts Inspection Total budgeted overhead Actual Activity Driver Usage Setups Parts Inspections Enter answers in the tabs below. Per Unit Budgeted Cost (Activity Driver) $ 157,520 (22 machine setups) 66,880 (16,000 parts) 97,500 (250 inspections) $ 321,900 Product 1 Product 2 Product 1 10 10,000 40 Required 1 Required 2 Use a plantwide overhead rate based on 6,080 direct labor hours to compute the overhead cost per unit for each product. Note: Do not round intermediate calculations. Round your final answers to 2 decimals. Overhead Cost per Unit S Product 2 6,000 210 3 Enter answers in the tabs below. Required 1 Required 2 Use activity-based costing to a) compute overhead activity rates, and b) allocate overhead cost to each product and compute overhead cost per unit for each product. Note: Do not round intermediate calculations. Round the final answers to 2 decimals. a. Compute overhead activity rates Activity Activity Rate 7,160.00 per setup Setup Handling parts 4.18 per part 390.00 per inspection Inspection b. Allocate overhead to each product and compute overhead cost per unit for each product Allocated Cost Activity Setup Handling parts Inspection Total allocated cost Units produced Overhead cost per unit $ $ $ $ $ Product 1 < Required 1 71,600 41,800 113,400 $ Product 2 Required 2 0
Expert Answer:
Answer rating: 100% (QA)
1 Predetermined overhead rate Overhead Rate Per Direct Labor Hour Budgeted ... View the full answer
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt
Posted Date:
Students also viewed these accounting questions
-
A 20-year bond with a coupon rate of 9%, payable semiannually, has an early redemption option after 5 years with a price of $1,050. The bond is sold at a yield to maturity rate of 8%. What is the...
-
Assume you notice the following information. Assume you spend $1 million USD do an arbitrage trading strategy. What is your profit is USD . Remember to consider the profit after you pay back your...
-
Franklin Furniture, Inc. (FFI) manufactures bedroom furniture in sets (a set includes a dresser, two queen-size beds, and one bedside table) for use in motels and hotels. FFI has three customer...
-
A study in Batu Pahat General Hospital's on patient account division has compiled data on the age of accounts receivables. The data collected indicates that the age of the accounts follows a normal...
-
The position of a mass on a spring is given by x = (3.8 cm) cos[2t/10.88 s)]. (a) What is the period, T, of this motion? (b) Where is the mass at t = 0.55 s? (c) Show that the mass is at the same...
-
Yikes, a U.S.-based manufacturer of shoes, had plants in several countries in Southeast Asia and enjoyed considerable success in world markets as a result of a number of factors, including its...
-
Photo Express operates a small camera store in Ft. Lauderdale, Florida. The store has two departments, camera sales and photo finishing. Rent, utilities, and other operating expenses are allocated to...
-
The condensed comparative income statement and balance sheets to Tola Corporation appear below and on the next page. All figures are given in thousands of dollars, except earnings per share....
-
Stephen plans to purchase a car 3 years from now. The car will cost $55,542 at that time. Assume Stephen can earn 7.98% (compounded monthly) on his money. How much should he set aside today for the...
-
Toyota Motor Corporation (TM) uses target costing. Assume that Toyota marketing personnel estimate that the competitive, average selling price for the Rav4 in the upcoming model year will need to be...
-
Code in Java, please class Solution { public int solution(int A, int B) { // Implement your solution here } } . Programming Language Ct language Task 3 Java 8 English There are two wooden sticks ...
-
Will cyber espionage become the primary intelligence collection INT of the future using hybrid HUMINT-SIGINT collection techniques, or be considered a modification of traditional SIGINT collection?
-
Magenta Corporation has 1,000 shares of stock outstanding. Julie owns 400 of these shares, and unrelated individuals own the remaining 600 shares. Magenta redeems 100 of Julie's shares for $200,000....
-
A 20 foot uninsulated steam line crosses through a room. The outer diameter of the steam line is 18 in. and the outer surface temperature is 300 F. The convective heat transfer coefficient for the...
-
Analyze the transactions for 2022 and record each transaction in the general journal. Post the general journal entries to the general ledger on a daily basis. Prepare a worksheet for the year ended...
-
FactSet Industry Company Symbol Company Name Price Sec Market Value Net Sales % Chg in Price (= Return) P/E Ratio - TTM Div Yield 3y BETA Sales Weightage Food: Specialty/Candy BCPC Balchem Corp 156.7...
-
Shatin Foods Inc., the grocery store chain, is expected to generate free cash flow of $290.683 million at the end of the year. Analysts expect Shatin's cash flows to grow in perpetuity at the rate of...
-
Assume that your audit team has established the following parameters for the examination of ELM's sales transactions: LO G-3 Risk of incorrect acceptance...
-
The following partial organization chart is an extension of Exhibit 121 for Aloha Hotels and Resorts. Each of the hotels five main departments is managed by a director (e.g., director of...
-
In each case below, fill in the missing amount. 1. Work in Process, June 1..................................................... 10,000 pounds Units started during...
-
Air Frame Technology, Inc. incurs a variable cost of $16 per kilogram for raw material to produce a special alloy used in manufacturing aircraft. Required: 1. Draw a graph of the firms raw material...
-
Explain why corporations may prefer to issue bonds to raise funds for their operations.
-
Explain the meaning of bond ratings and their impact on buying decisions.
-
Describe the characteristics of a municipal bond, including tax factors.
Study smarter with the SolutionInn App