Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports...
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Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Direct materials Direct labor Rounded Edge $ 40,800 Overhead (using plantwide rate) 13,600 47,400 Squared Edge $ 52,800 35,200 89,400 Total $ 93,600 48,800 136,800 Total product cost Units produced Product cost per unit $ 101,800 13,600 $ 7.49 $ 177,400 $ 279,200 17,600 $ 10.08 Northwest's controller wants to apply activity-based costing to allocate the $136,800 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. Activity Purchasing Depreciation of machinery Budgeted Cost $ 7,200 71,000 Setup 58,600 Activity Cost Driver Purchase orders Machine hours Setups Rounded Edge 199 orders 500 hours 40 setups Activity Usage Squared Edge 521 orders 1,500 hours 210 setups Total 720 orders 2,000 hours 250 setups Total $ 136,800 Required: 1. Compute the 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. Required 1 Required 2 Required 3 Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Activity Purchasing Depreciation Setup Budgeted Cost Budgeted Activity Usage Activity Rate 21 16 Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. points Direct materials Rounded Edge $ 40,800 Squared Edge $ 52,800 Total $ 93,600 Direct labor Overhead (using plantwide rate) 13,600 47,400 Total product cost Units produced eBook Product cost per unit $ 101,800 13,600 $ 7.49 $ 177,400 17,600 35,200 89,400 48,800 136,800 $ 279,200 $ 10.08 Hint Northwest's controller wants to apply activity-based costing to allocate the $136,800 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. Print Activity Budgeted Cost Purchasing $ 7,200 Depreciation of machinery References Setup Total 71,000 58,600 $136,800 Activity Cost Driver Purchase orders Machine hours Setups Rounded Edge 199 orders 500 hours 40 setups Activity Usage Squared Edge 521 orders 1,500 hours 210 setups Total 720 orders 2,000 hours 250 setups Required: 1. Compute the 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. Required 1 Required 2 Required 3 Compute overhead cost per unit for each of the two products using activity-based costing. (Round "Activity Rate" to 2 decimal places and other answers to the nearest whole dollar amount.) Overhead cost per unit-Rounded Edge Activity Activity Usage Purchasing Depreciation Setup Total allocated cost Units produced Overhead cost per unit Overhead cost per unit-Squared Edge Activity Rate Allocated Cost Activity Activity Usage Activity Rate Allocated Cost Purchasing Depreciation Setup Total allocated cost Units produced Overhead cost per unit < Required 1 Required 3 > 16 Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. 21 points Direct materials Direct labor Overhead (using plantwide rate) 13,600 47,400 Total product cost Units produced eBook Product cost per unit $ 101,800 13,600 $ 7.49 Rounded Edge $ 40,800 Squared Edge $ 52,800 Total 35,200 89,400 $ 279,200 $ 93,600 48,800 136,800 $ 177,400 17,600 $ 10.08 Hint Northwest's controller wants to apply activity-based costing to allocate the $136,800 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. 199 orders 500 hours 40 setups Activity Usage Squared Edge 521 orders 1,500 hours 210 setups Total 720 orders 2,000 hours 250 setups Print Activity Budgeted Cost Purchasing $ 7,200 Depreciation of machinery 71,000 References Setup Total 58,600 $136,800 Activity Cost Driver Purchase orders Machine hours Setups Rounded Edge Required: 1. Compute the 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. Required 1 Required 2 Required 3 Determine product cost per unit for each of the two products using activity-based costing. (Round intermediate calculations and final answers to 2 decimal places.) Per Unit Rounded Edge Squared Edge Direct Materials Direct Labor Overhead Product Cost per Unit < Required 2 Required 3 > Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Direct materials Direct labor Rounded Edge $ 40,800 Overhead (using plantwide rate) 13,600 47,400 Squared Edge $ 52,800 35,200 89,400 Total $ 93,600 48,800 136,800 Total product cost Units produced Product cost per unit $ 101,800 13,600 $ 7.49 $ 177,400 $ 279,200 17,600 $ 10.08 Northwest's controller wants to apply activity-based costing to allocate the $136,800 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. Activity Purchasing Depreciation of machinery Budgeted Cost $ 7,200 71,000 Setup 58,600 Activity Cost Driver Purchase orders Machine hours Setups Rounded Edge 199 orders 500 hours 40 setups Activity Usage Squared Edge 521 orders 1,500 hours 210 setups Total 720 orders 2,000 hours 250 setups Total $ 136,800 Required: 1. Compute the 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. Required 1 Required 2 Required 3 Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Activity Purchasing Depreciation Setup Budgeted Cost Budgeted Activity Usage Activity Rate 21 16 Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. points Direct materials Rounded Edge $ 40,800 Squared Edge $ 52,800 Total $ 93,600 Direct labor Overhead (using plantwide rate) 13,600 47,400 Total product cost Units produced eBook Product cost per unit $ 101,800 13,600 $ 7.49 $ 177,400 17,600 35,200 89,400 48,800 136,800 $ 279,200 $ 10.08 Hint Northwest's controller wants to apply activity-based costing to allocate the $136,800 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. Print Activity Budgeted Cost Purchasing $ 7,200 Depreciation of machinery References Setup Total 71,000 58,600 $136,800 Activity Cost Driver Purchase orders Machine hours Setups Rounded Edge 199 orders 500 hours 40 setups Activity Usage Squared Edge 521 orders 1,500 hours 210 setups Total 720 orders 2,000 hours 250 setups Required: 1. Compute the 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. Required 1 Required 2 Required 3 Compute overhead cost per unit for each of the two products using activity-based costing. (Round "Activity Rate" to 2 decimal places and other answers to the nearest whole dollar amount.) Overhead cost per unit-Rounded Edge Activity Activity Usage Purchasing Depreciation Setup Total allocated cost Units produced Overhead cost per unit Overhead cost per unit-Squared Edge Activity Rate Allocated Cost Activity Activity Usage Activity Rate Allocated Cost Purchasing Depreciation Setup Total allocated cost Units produced Overhead cost per unit < Required 1 Required 3 > 16 Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. 21 points Direct materials Direct labor Overhead (using plantwide rate) 13,600 47,400 Total product cost Units produced eBook Product cost per unit $ 101,800 13,600 $ 7.49 Rounded Edge $ 40,800 Squared Edge $ 52,800 Total 35,200 89,400 $ 279,200 $ 93,600 48,800 136,800 $ 177,400 17,600 $ 10.08 Hint Northwest's controller wants to apply activity-based costing to allocate the $136,800 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. 199 orders 500 hours 40 setups Activity Usage Squared Edge 521 orders 1,500 hours 210 setups Total 720 orders 2,000 hours 250 setups Print Activity Budgeted Cost Purchasing $ 7,200 Depreciation of machinery 71,000 References Setup Total 58,600 $136,800 Activity Cost Driver Purchase orders Machine hours Setups Rounded Edge Required: 1. Compute the 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. Required 1 Required 2 Required 3 Determine product cost per unit for each of the two products using activity-based costing. (Round intermediate calculations and final answers to 2 decimal places.) Per Unit Rounded Edge Squared Edge Direct Materials Direct Labor Overhead Product Cost per Unit < Required 2 Required 3 >
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Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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