Kingcoil Company has identified the following overhead cost pool and cost drivers: Activity Cost $ 180.000...

  

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Kingcoil Company has identified the following overhead cost pool and cost drivers: Activity Cost $ 180.000 50.000 20.000 Overhead Cost Pool Machine set-up Material handling Electric power The following cost information pertains to the production of products A and B: Number of units produced Direct materials costs Direct labor costs Number of set-up hours Pounds of materials used Kilowatt-hours Required: Compute the unit costs for Product A and Product B 1,500 set-up hours 12,500 pounds of materials 20,000 kilowatt-hours SS Cost Drivers $ Product A 4.000 20.000 $ 12.000 $ 100 500 1.000 Product B 20.000 25.000 20.000 120 1.500 2.000 Lassie Company manufactures Gameboy. It plans to implement an activity based costing system. The controller has prepared the following estimates regarding costs pools and activity level for the next year. Cost Pool Activity Cost Activity Driver Levels Electricity Machine set-ups Material moves Quality inspections $ 100.000 300.000 80.000 120.000 600.000 Direct materials costs Direct labor ($10/hour) Machine hours Set-up hours Electricity (kWh) Number of quality inspections Number of material moves The plant's present cost accounting system allocates manufacturing overhead to jobs using a plant-wide overhead rate based on machine hours. The total machine hours for the coming year are estimated to be 100,000 hours. 40.000 kwh 1.500 set-up hours 40.000 moves 30.000 inspections The company has received a request for a bid to deliver 2,000 units of its Gameboy model GB-E1. The following estimates pertain to the production of 2,000 units of GB-E1: $ $ 30.000 15.000 2.000 50 2.000 500 200 Required: What is the estimated manufacturing costs per unit of GB-E1 if the ABC system is implemented? Kingcoil Company has identified the following overhead cost pool and cost drivers: Activity Cost $ 180.000 50.000 20.000 Overhead Cost Pool Machine set-up Material handling Electric power The following cost information pertains to the production of products A and B: Number of units produced Direct materials costs Direct labor costs Number of set-up hours Pounds of materials used Kilowatt-hours Required: Compute the unit costs for Product A and Product B 1,500 set-up hours 12,500 pounds of materials 20,000 kilowatt-hours SS Cost Drivers $ Product A 4.000 20.000 $ 12.000 $ 100 500 1.000 Product B 20.000 25.000 20.000 120 1.500 2.000 Lassie Company manufactures Gameboy. It plans to implement an activity based costing system. The controller has prepared the following estimates regarding costs pools and activity level for the next year. Cost Pool Activity Cost Activity Driver Levels Electricity Machine set-ups Material moves Quality inspections $ 100.000 300.000 80.000 120.000 600.000 Direct materials costs Direct labor ($10/hour) Machine hours Set-up hours Electricity (kWh) Number of quality inspections Number of material moves The plant's present cost accounting system allocates manufacturing overhead to jobs using a plant-wide overhead rate based on machine hours. The total machine hours for the coming year are estimated to be 100,000 hours. 40.000 kwh 1.500 set-up hours 40.000 moves 30.000 inspections The company has received a request for a bid to deliver 2,000 units of its Gameboy model GB-E1. The following estimates pertain to the production of 2,000 units of GB-E1: $ $ 30.000 15.000 2.000 50 2.000 500 200 Required: What is the estimated manufacturing costs per unit of GB-E1 if the ABC system is implemented?

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ABC Method Activitybased costing is the method of allo... View the full answer