Bayline, Inc. manufactures two types of surf boards, Beginner and Longboard. Manufacturing overhead has een applied...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bayline, Inc. manufactures two types of surf boards, Beginner and Longboard. Manufacturing overhead has een applied on the basis of direct labor hours. Bayline, gathers some activity information and is interested in implementing an activity-based costing system. The company wants all overhead costs to be allocated to products. The overhead costs pools and activity drivers ae as follows: Activity Pool Machine setup Cutting/Assembly Total Drive Usage 1,00 setups Overhead costs $36,000 $62,000 $98,000 31,000 machine hours Total overhead costs Other product information is as follows: Longboard 42,000 Beginner Units produced 40,000 Direct material $10 per unit $25 per unit $10 per unit 8,000 Direct labor $8 per unit 6,000 Direct labor hours Machine setups 750 250 Machine hours 20,000 + 11,000 Required: a. Using the traditional method, determine the overhead rate per direct labor hour. b. Using the activity-based costing approach, determine the two activity rates. C. Using the activity-based approach, determine the unit product cost for the Beinner board. Bayline, Inc. manufactures two types of surf boards, Beginner and Longboard. Manufacturing overhead has een applied on the basis of direct labor hours. Bayline, gathers some activity information and is interested in implementing an activity-based costing system. The company wants all overhead costs to be allocated to products. The overhead costs pools and activity drivers ae as follows: Activity Pool Machine setup Cutting/Assembly Total Drive Usage 1,00 setups Overhead costs $36,000 $62,000 $98,000 31,000 machine hours Total overhead costs Other product information is as follows: Longboard 42,000 Beginner Units produced 40,000 Direct material $10 per unit $25 per unit $10 per unit 8,000 Direct labor $8 per unit 6,000 Direct labor hours Machine setups 750 250 Machine hours 20,000 + 11,000 Required: a. Using the traditional method, determine the overhead rate per direct labor hour. b. Using the activity-based costing approach, determine the two activity rates. C. Using the activity-based approach, determine the unit product cost for the Beinner board.
Expert Answer:
Answer rating: 100% (QA)
Required solution of all parts is given below Activity Cost Pool Overhead Costs Total Driver Us... View the full answer
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
Posted Date:
Students also viewed these accounting questions
-
Determine a) a, a, d) aga, g) ag x a. the values of the following products of base vectors: c) a, x ax f) ar a . i) a. x a.. . b) ag ay e) a,.aR h) an a
-
Adams Manufacturing allocates overhead to production on the basis of direct labor costs At the beginning of the year Adams estimated total overhead of 396000 materials of 410000 and direct labor of...
-
Under UNICAP Rules, which of the following costs would be capitalized A) Indirect costs related to the firm's administration function B) All of the above C) Indirect costs of manufacturing,...
-
Consider an atom diffuses in a 3 D simple cubic lattice by a random walk mechanism. The atom jumps 6 x 1 0 - 5 times per second at 3 0 0 K and 3 x 1 0 4 times per second at 6 0 0 K . Assuming that...
-
(a) In question 16 what advanced statistical procedures can Poindexter employ to improve his predictions about test errors even more? (b) Say that the resulting correlation coefficient is .67. Using...
-
What are the six major objectives of a defense strategy?
-
How many chemicals should be reported on in toxic release and national pollutant inventories and polluting emissions registers? What criteria have affected your choice?
-
For each of the following independent cases, identify the missing value(s). Precision Sample estimate Reliability Precision interval Sampling risk 20 56 95% 10 80 D) 75 to 85 10% 98% 111 to 131 IF)
-
Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five-year period. His annual pay raises are determined by his division's...
-
AD Enterprise was established in June 2023. During the first month of the operation of the business, these events and transactions occurred: June 1 Mr. AD invested $100,000 cash in exchange into the...
-
A 1500 cm 3 , four stroke cycle,four cylinder CI engine ,operating at 3000RPM, produces 48kWof brake power. Volumetric efficiency is 0.92 and air fuel ratio AF=21:1. calculate (1) Rate of air flow...
-
Orville walks 0.323 km due east. He then continues walking along a straight line, but in a different direction, and stops 0.220 km northeast of his starting point. How far did he walk during the...
-
LJS Co. faces increasing needs for capital Fortunately it has an AA credit rating. The corporate tax rate is 40 percent The firm's financial manager is trying to determine the firm's current (2018)...
-
Give a summary of concepts and the applications for the following quistion: When a 200.0-g mass is attached to a spring, it stretches the spring by 7.50 cm. With that mass-spring system in...
-
(a) What does the following algorithm do? function: F(x, y) input: nonnegative integers x and y if y = 0: return 0 z = F(x, FLOOR(y/2)) if y is even: return 2z else: return x+2z
-
29. You are standing on a balcony on the 15th floor of the Bank of America building in San Francisco. The balcony is 72 m above the ground; the top of the building is 52 floors (237 m) high. You...
-
Problem 4: International Finance For each of the following, include both a verbal explanation and a relevant foreign exchange supply-demand diagram: a) How will it affect the value of the US dollar...
-
Les has collected stamps in his spare time for years. He purchased many of his stamps at a price much lower than the current market value. Les recently lost his job as a carpenter. Since his wife...
-
What is the relationship between the quantity required to break even and the quantity used for denominator volume to determine the fixed overhead allocation rate?
-
Will organizational efforts towards sustainability result in reduced organizational profits?
-
Identify three products for which target costing and kaizen costing could be used. Identify three products for which target costing and kaizen costing would be inappropriate.
-
Will you accept the following as good voucher? (a) A bill of Rs. 5,000 submitted by a salesman for his travelling allowance (b) A cash memo for Rs. 500 for a perambulator of a company producing...
-
How do you vouch the following? (a) Custom duty paid on import of machinery (b) Income from house property (c) Royalty payable to a foreign collaborator (d) Traveling expenses (e) Interest and...
-
What are the differences between auditing and accountancy?
Study smarter with the SolutionInn App