nces Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An...
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nces Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown HI-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss Hi-Tek produced and sold 60,300 units of B300 at a price of $21 per unit and 12,600 units of T500 at a price of $39 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base Additional information relating to the company's two product lines is shown below Direct materials Direct labor Manufacturing overhead Cost of goods sold $ 1,757,700 1,226,810 528,890 630,000 $ (101,110) 8300 1500 $ 400,400 $ 162,300 $ $ 120,600 $ 42,900 Activity Cost Pool (and Activity heasure) Machining (machine-hours) Setups (setup hours) The company has created an activity-based costing system to evaluate the profitability of its products Hi-Tek's ABC implementation team concluded that $55,000 and $102,000 of the company's advertising expenses could be directly traced to B300 and 1500, respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown below Product-sustaining (number of products) Other (organization sustaining costs) Total manufacturing overhead cost Total 562,700 163,500 502,610 $ 1,228,810 Manufacturing Overhead $ 214,620 126,000 101,200 €0,100 $502,610 Complete this question by entering your answers in the tabs below. 8300 Total 90,400 62,900 155,500 230 I 79 3 Activity 1500 NA NA 309 2 NA Required: 1 Compute the product margins for the B300 and 1500 under the company's traditional costing system 2. Compute the product margins for B300 and 1500 under the activity-based costing system 3 Prepare a quantitative comparison of the traditional and activity based cost assignments mework i Direct labor Manufacturing overhead Cost of goods sold $ 120,600 $ 42,900 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implemen team concluded that $55,000 and $102,000 of the company's advertising expenses could be directly traced to B300 and T50 respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team a distributed the company's manufacturing overhead to four activities as shown below. 163,500 502,610 $1,228,810 Product margin Hanufacturing Overhead $ 214,620 126,690 101,200 60,100 $ 502,610 Complete this question by entering your answers in the tabs below. 8300 Activity 8300 1500 90,400 62,900 79 230 1 1 NA NA Total 153,300 Required: 1 Compute the product margins for the B300 and 1500 under the company's traditional costing system 2 Compute the product margins for B300 and T500 under the activity-based costing system 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments 309 2 Required 2 > Saved NA Required 1 Required 2 Required 3 Compute the product margins for the 8300 and T500 under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) 1500 Total ences Cost of goods sold The company has created an activity-based costing system to evaluate the profitability of its products Hi-Tek's ABC implement team concluded that $55,000 and $102,000 of the company's advertising expenses could be directly traced to B300 and T500 respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team als distributed the company's manufacturing overhead to four activities as shown below Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost $1,228,810 Product margin Complete this question by entering your answers in the tabs below. 8300 Hanufacturing Overhead 1500 $ 214,620 126,690 101,200 60,100 $ 502,610 < Required 1 8300 1500 90,400 62,900 79 1 NA Activity Required: 1 Compute the product margins for the 8300 and T500 under the company's traditional costing system 2. Compute the product margins for B300 and T500 under the activity-based costing system 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments 230 1 NA Required 1 Required 2 Required 3 Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places) Total Required 3 > Total 153,300 309 2 NA 4 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) Total Traditional Cost System Total cost assigned to products Total cost Activity-Based Costing System Direct costs Indirect costs Total cost assigned to products Costs not assigned to products Total cost Amount Amount 8300 8300 % of % < Required 2 % % % of Total Amount *** % % Amount Amount T500 T500 Requituda % of % % of Total Amount % Amount Total Amount nces Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown HI-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss Hi-Tek produced and sold 60,300 units of B300 at a price of $21 per unit and 12,600 units of T500 at a price of $39 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base Additional information relating to the company's two product lines is shown below Direct materials Direct labor Manufacturing overhead Cost of goods sold $ 1,757,700 1,226,810 528,890 630,000 $ (101,110) 8300 1500 $ 400,400 $ 162,300 $ $ 120,600 $ 42,900 Activity Cost Pool (and Activity heasure) Machining (machine-hours) Setups (setup hours) The company has created an activity-based costing system to evaluate the profitability of its products Hi-Tek's ABC implementation team concluded that $55,000 and $102,000 of the company's advertising expenses could be directly traced to B300 and 1500, respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown below Product-sustaining (number of products) Other (organization sustaining costs) Total manufacturing overhead cost Total 562,700 163,500 502,610 $ 1,228,810 Manufacturing Overhead $ 214,620 126,000 101,200 €0,100 $502,610 Complete this question by entering your answers in the tabs below. 8300 Total 90,400 62,900 155,500 230 I 79 3 Activity 1500 NA NA 309 2 NA Required: 1 Compute the product margins for the B300 and 1500 under the company's traditional costing system 2. Compute the product margins for B300 and 1500 under the activity-based costing system 3 Prepare a quantitative comparison of the traditional and activity based cost assignments mework i Direct labor Manufacturing overhead Cost of goods sold $ 120,600 $ 42,900 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implemen team concluded that $55,000 and $102,000 of the company's advertising expenses could be directly traced to B300 and T50 respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team a distributed the company's manufacturing overhead to four activities as shown below. 163,500 502,610 $1,228,810 Product margin Hanufacturing Overhead $ 214,620 126,690 101,200 60,100 $ 502,610 Complete this question by entering your answers in the tabs below. 8300 Activity 8300 1500 90,400 62,900 79 230 1 1 NA NA Total 153,300 Required: 1 Compute the product margins for the B300 and 1500 under the company's traditional costing system 2 Compute the product margins for B300 and T500 under the activity-based costing system 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments 309 2 Required 2 > Saved NA Required 1 Required 2 Required 3 Compute the product margins for the 8300 and T500 under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) 1500 Total ences Cost of goods sold The company has created an activity-based costing system to evaluate the profitability of its products Hi-Tek's ABC implement team concluded that $55,000 and $102,000 of the company's advertising expenses could be directly traced to B300 and T500 respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team als distributed the company's manufacturing overhead to four activities as shown below Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost $1,228,810 Product margin Complete this question by entering your answers in the tabs below. 8300 Hanufacturing Overhead 1500 $ 214,620 126,690 101,200 60,100 $ 502,610 < Required 1 8300 1500 90,400 62,900 79 1 NA Activity Required: 1 Compute the product margins for the 8300 and T500 under the company's traditional costing system 2. Compute the product margins for B300 and T500 under the activity-based costing system 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments 230 1 NA Required 1 Required 2 Required 3 Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places) Total Required 3 > Total 153,300 309 2 NA 4 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) Total Traditional Cost System Total cost assigned to products Total cost Activity-Based Costing System Direct costs Indirect costs Total cost assigned to products Costs not assigned to products Total cost Amount Amount 8300 8300 % of % < Required 2 % % % of Total Amount *** % % Amount Amount T500 T500 Requituda % of % % of Total Amount % Amount Total Amount
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Managerial Accounting for Managers
ISBN: 978-1259578540
4th edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
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