The local bakery has been using job order costing and is deciding whether to use activity-based...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The local bakery has been using job order costing and is deciding whether to use activity-based costing. The bakery makes many different products, including the one you produced in the job order costing project. In this project, you will calculate the unit product cost under activity-based costing for the same bakery product you produced in the job order costing project. Project Data: The bakery has identified the following activity cost pools, cost drivers, and total yearly quantity for the cost drivers, and percentage of total estimated manufacturing overhead cost allocated to each cost pool. The bakery estimates $50,000 in total manufacturing overhead. Activity Cost Pool Equipment Setup Materials Ordering and Number of purchase Inspection orders Quality Control Activity Cost Pool Data Other Cost Driver Number of setups Cost Driver Quantity 750 setups Number of inspections 2,500 inspections Number of direct labor hours 1,500 orders 10,000 hours Percent of Total Manufacturing Overhead 30% 30% 25% 15% 4 Project Requirements: 1. Calculate total manufacturing overhead cost allocated to each activity cost pool. 2. Calculate the activity rate for each activity cost pool. 3. Estimate the cost driver quantity allocated to your bakery product from the job order costing project. Note: This will not be the entire cost driver quantity as the bakery makes many different products. Determine a reasonable estimate based on your product. 4. Calculate manufacturing overhead allocated in the year to your bakery product. 5. Estimate total units produced in the year and calculate manufacturing overhead per unit. 6. Using direct materials per unit and direct labor per unit from the job order costing project, calculate unit product cost. 7. In a few sentences, explain the differences in unit product cost between job order and activity-based costing. The local bakery has been using job order costing and is deciding whether to use activity-based costing. The bakery makes many different products, including the one you produced in the job order costing project. In this project, you will calculate the unit product cost under activity-based costing for the same bakery product you produced in the job order costing project. Project Data: The bakery has identified the following activity cost pools, cost drivers, and total yearly quantity for the cost drivers, and percentage of total estimated manufacturing overhead cost allocated to each cost pool. The bakery estimates $50,000 in total manufacturing overhead. Activity Cost Pool Equipment Setup Materials Ordering and Number of purchase Inspection orders Quality Control Activity Cost Pool Data Other Cost Driver Number of setups Cost Driver Quantity 750 setups Number of inspections 2,500 inspections Number of direct labor hours 1,500 orders 10,000 hours Percent of Total Manufacturing Overhead 30% 30% 25% 15% 4 Project Requirements: 1. Calculate total manufacturing overhead cost allocated to each activity cost pool. 2. Calculate the activity rate for each activity cost pool. 3. Estimate the cost driver quantity allocated to your bakery product from the job order costing project. Note: This will not be the entire cost driver quantity as the bakery makes many different products. Determine a reasonable estimate based on your product. 4. Calculate manufacturing overhead allocated in the year to your bakery product. 5. Estimate total units produced in the year and calculate manufacturing overhead per unit. 6. Using direct materials per unit and direct labor per unit from the job order costing project, calculate unit product cost. 7. In a few sentences, explain the differences in unit product cost between job order and activity-based costing.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Hampshire Company manufactures umbrellas that sell for $12.50 each. In 2014, the company made and sold 60,000 umbrellas. The company had fixed manufacturing costs of $216,000. It also had fixed...
-
summarize this article TITLE Overhead cost pools. By: Lambert III, S.J., Chen, Kung H., Internal Auditor, 00205745, Oct96, Vol. 53, Issue 5 DATA BASE Business Source Complete Internal auditors who...
-
Suppose that 1 8 E1 1 E2 1 4 and E, E A = I. Express A as a product of elementary matrices. 1 1 -8 8 () A 1 -8 (A) A (C) A = 4 1 -4 -4 1 1 (D) A = 1 1 1 1 -8 1 1 1 -8 (E) A = 4 (F) A (G) A 4 4 1 1 1...
-
The stresses relative to compass coordinates (x = east, y = north, z = up) are xx =14.86, yy = 21.00, zz =28.97, yy= 8.43, xz = 0, yx = 0 in MPa with compression positive. Suppose a circular tunnel...
-
If we have four \(\mathrm{H}\) atoms, write down the Hamiltonian, and describe two potentially stable configurations.
-
Forms are provided in the Working Papers. Your instructor will guide you through the following examples. 1. Create a schedule that shows the payment of an annuity over a four-year period. The initial...
-
According to a summary of the payroll of Bailik Co., $880,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $40,000 was subject to state and federal unemployment taxes....
-
PC Shopping Network may upgrade its modem pool. It last upgraded 2 years ago, when it spent $85 million on equipment with an assumed life of 5 years and an assumed salvage value of $10 million for...
-
For which variables is there evidence of a relationship with USERS? Users is the dependent variable USERS PEDESTRIANS CARS IN_BANK DF_BANK DF_SAME_ATM DF_DIFF_ATM POP AVG_INC VIOLENT LOCATION 3038...
-
Suppose Stocks A, B and C are the only three component stocks in a benchmark index. The number of shares outstanding of Stocks A, B and C are 388,000 shares, 312,000 shares, and 249,000 shares,...
-
Need to find a topic can you help point me in the correct direction based on data below: Need to analyze an aviation or aerospace industrial management issue related to production/operations...
-
Write a Python code for the payroll system of Employees in a company as follows: The program should have 4 classes: 1- Employee class: 5 points Use init () for initializing the attributes of the...
-
Write a small essay about W. Edwards Deming and Toyota quality system. Describe his "Seven Deadly Diseases" and briefly discuss them. List three the most reliable and three the least reliable car...
-
The following information has been obtained from the records of AJ Corporation Ltd for the period from January 1 to June 30, 2013. PARTICULARS 1. 1.2013 $ , 30.6.2013 $ Cost of Raw Materials 10,000 ,...
-
In the figure here three ballot boxes are connected by cords, one of which wraps over a pulley having negligible friction on its axle and negligible mass. The masses are m = 33 kg, mg = 43 kg, and mc...
-
$10,000 was borrowed at 3.5% on July 17. The borrower repaid $5000 on August 12, and $2000 on September 18. What final payment is required on November 12 to fully repay the loan?
-
Michael Company is considering the purchase of a large press costing $100,000. The estimated cash inflows before considering the effects of inflation and income taxes are considered follow:...
-
On January 1, a materials analyst is asked to determine the number of units of Item AZ to be ordered for March delivery. The production schedule calls for 4,800 units of AZ for January operations,...
-
Max Electronics Corporation manufactures electronic appliances for home use. Recent market studies suggest that consumer perception of product quality is high; however, sales have declined in recent...
-
Find all real solutions \(x\) of the equation \(x^{1 / 2}-(2-2 x)^{1 / 2}=1\).
-
Which is bigger: \(100^{10000}\) or \(10000^{100}\) ? Which is bigger: the cube root of 3 or the square root of 2 ? (No calculators allowed!)
-
Find an integer \(n\) and a rational \(t\) such that \(n^{t}=2^{1 / 2} 3^{1 / 3}\).
Study smarter with the SolutionInn App