5 Direct materials Direct labor Overhead (using plantwide rate) Total product cost Units produced Product cost...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
5 Direct materials Direct labor Overhead (using plantwide rate) Total product cost Units produced Product cost per unit Activity Purchasing Depreciation of machinery Setup Total overhead Northwest's controller wants to apply activity-based costing to allocate the $124,000 of overhead costs to the two products to see whether product cost per unit would change markedly from that above. The following information is collected. Required 1 Rounded Edge Squared Edge $36,200 $ 49,800 17,200 28,800 42,600 81,400 $ 160,000 $ 96,000 12,000 $ 8.00 Budgeted Cost $ 6,400 64,600 53,000 $ 124,000 Per Unit Rounded Edge Squared Edge Required 2 Required 3 16,000 $ 10.00 Required: 1. Compute an activity rate for each activity using activity-based costing. 2. Compute overhead cost per unit for each of the two products using activity-based costing. 3. Determine product cost per unit for each of the two products using activity-based costing. Complete this question by entering your answers in the tabs below. Direct Materials S 3.01 $ 3.11 Total $ 86,000 46,000 124,000 $ 256,000 Activity Driver Purchase orders Machine hours Setups 1.43 1.80 Rounded Edge 159 orders 500 hours 40 setups Determine product cost per unit for each of the two products using activity-based costing. (Round "Activity Rate" to 2 decimal places and other intermediate calculations to the nearest whole dollar amount. Round your final answers to 2 decimal places.) Direct Labor Product Cost per Unit Overhead Activity Usage Squared Edge 481 orders 1,500 hours 210 setups Total 640 orders 2,000 hours 250 setups 5 Direct materials Direct labor Overhead (using plantwide rate) Total product cost Units produced Product cost per unit Activity Purchasing Depreciation of machinery Setup Total overhead Northwest's controller wants to apply activity-based costing to allocate the $124,000 of overhead costs to the two products to see whether product cost per unit would change markedly from that above. The following information is collected. Required 1 Rounded Edge Squared Edge $36,200 $ 49,800 17,200 28,800 42,600 81,400 $ 160,000 $ 96,000 12,000 $ 8.00 Budgeted Cost $ 6,400 64,600 53,000 $ 124,000 Per Unit Rounded Edge Squared Edge Required 2 Required 3 16,000 $ 10.00 Required: 1. Compute an activity rate for each activity using activity-based costing. 2. Compute overhead cost per unit for each of the two products using activity-based costing. 3. Determine product cost per unit for each of the two products using activity-based costing. Complete this question by entering your answers in the tabs below. Direct Materials S 3.01 $ 3.11 Total $ 86,000 46,000 124,000 $ 256,000 Activity Driver Purchase orders Machine hours Setups 1.43 1.80 Rounded Edge 159 orders 500 hours 40 setups Determine product cost per unit for each of the two products using activity-based costing. (Round "Activity Rate" to 2 decimal places and other intermediate calculations to the nearest whole dollar amount. Round your final answers to 2 decimal places.) Direct Labor Product Cost per Unit Overhead Activity Usage Squared Edge 481 orders 1,500 hours 210 setups Total 640 orders 2,000 hours 250 setups
Expert Answer:
Answer rating: 100% (QA)
1 Activity rate Activity Purchasing Depreciation Setup 2 Overhead cost per unit Purchasing Depreciat... View the full answer
Posted Date:
Students also viewed these accounting questions
-
Zebra Inc. produced net income of $100,000 in 2019. They paid out half their net income in dividends and the other half was reinvested back into the company. During the year, they incurred $10,000 in...
-
Problem 9- 3A Estimating and reporting bad debts P2 At December 31, 2013, Hawke Company reports the following results for its calendar year. Cash sales . . . . . . . . . . $ 1,905,000 Credit sales ....
-
Are the various branches of science separate or do they overlap? Give several examples to support your answer.
-
The financial statements for BSW National Bank (BSWNB) are shown below: a. What is the dollar value of earning assets held by BSWNB? b. What is the dollar value of interest-bearing liabilities held...
-
For each sequence, determine if the sequence is a geometric sequence. If so, identify the common ratio. 1. \(\{-1,-5,-25,-125,-625,-3125, \ldots\}\) 2. \(\{-3,6,-12,24,11,33\}\) 3....
-
Payroll Tax Entries the payroll of Delaney Company for September 2010 is as follows. Total payroll was $480,000, of which $140,000 is exempt from Social Security tax because it represented amounts...
-
Entity X sells lots and constructs houses. Entity X uses a standard contract with its customers. A customer who purchases a lot must also purchase a house from Entity X. The customer is prohibited...
-
Will Googles pay strategy work forever? Consider the evolution of Microsofts pay strategy as its growth slackened. Should Google prepare for a similar future? If so, when and what sort of actions...
-
1.Alicia, a florist, buys and sells flowers at her store. She purchases roses at $2.75 each, has operating expenses of 21% on cost, and has profits of 85% on cost. Calculate the following. a. Desired...
-
Firm X reports a cost of debt at 7.00 percent while its cost of levered equity is 17.0 percent. The firm has a 0.45 debt-equity ratio. What is its WACC if there are no taxes?
-
9. Mrs. Robinson borrows $5,000 for 90 days and pays $80 interest. What is her annual rate of interest? A. 1.6% B. 6.49% C. 12.98% D. 6.40%
-
In addition to a competitive pricing strategy what is the next best pricing strategy to use retail environment for consumer electronics? Please explain
-
B. CVD Sdn Bhd (CVDSB) is a company located at Kedah. The company produces picture frames. Traditionally, all frames are hand-made, which require one hour of direct labor to finish producing one...
-
Question 1 Mr. Badrol established a tour agency on 1 January 2021. The transactions for the month are as follows: Date 1 2 Transactions Started in business and deposited RM60,000 into a bank account...
-
Identify and discuss a common problem within couples according to Gottman Method Couples Therapy. Include scholarly citations for reference What is an appropriate intervention according to Gottman...
-
The sales department of P. Gillen Manufacturing Company has forecast sales in March to be 20,000 units. Additional information follows: Finished goods inventory, March 1 . . . . . . . . . . . . . . ....
-
1. Brockwell left his boat to be repaired at Lake Gaston Sales. The boat contained electronic equipment and other personal items. Brockwell signed a form stating that Lake Gaston had no...
-
2. Guyan Machinery, a West Virginia manufacturing corporation, hired Albert Voorhees as a salesman and required him to sign a contract stating that if he left Guyan he would not work for a competing...
-
4. The McAllisters had several serious problems with their house, including leaks in the ceiling, a buckling wall, and dampness throughout. They repaired the buckling wall by installing I-beams to...
Study smarter with the SolutionInn App