Harrison Company makes two products and uses a conventional costing system in which a single plantwide,...

 

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Harrison Company makes two products and uses a conventional costing system in which a single plantwide, predetermined overhea rate is computed based on direct labour-hours. These products are customized to some degree for specific customers. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labour cost per unit Direct labour-hours per unit Number of units produced Unit product cost Required: 1. The company s manufacturing overhead costs for the year are expected to be $870,000. Using the company s traditional costing system, compute the unit product costs for the two products. (Do not round intermediate calculations and round your final answe to 2 decimal places.) Rascon Rascon Parcel $29.30 $ 23.10 19.80 $ 4.80 0.90 0.40 31,000 121,000 Parcel $ 00:57:54 eBook Mc Graw Hill Education Engineering design time (in hours) 2. Management is considering an ABC system in which half of the overhead would continue to be allocated on the basis of direct labour-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year: Unit product cost Rascon Rascon 6,200 Parcel Parcel 3,100 Compute the unit product costs for the two products using the proposed ABC system. (Do not round intermediate calculations and round your final answers to 2 decimal places.) 3. This part of the question is not part of your Connect assignment. Prev Total 9,300 1 of 2 # Help D Save & E Next > to meducation.com/ext/map/index.html?_con-con&external browser-08launchUrl https%253A%252F%252Fims.mheducation.com%252Fmghmiddlewwe2121meproduct. 52 Chapter 5 5:48 Activity Cost Pool Labour related Machine related Machine setups Klumper Corporation is a diversified manufacturer of industrial goods. The company s ABC system has the following six activity cost pools and activity rates: Production orders Shipments General factory Direct materials cost per unit Direct labour cost per unit Number of units produced per year Direct labour-hours Machine-hours Machine setups Production orders. Shipments Activity Rates $ 18.00 per direct labour-hour 18.00 per machine-hour 50.00 per setup 120.00 per order Cost and activity data have been supplied for the following products: K425 M67 $212.00 $126.00 $ 11.50 $ 7.20 400 4,000 18.00 per shipment 38.00 per direct labour-hour Total Expected Activity Savod K425 160 200 3 3 3 M67 1,000 3,000 6 6 20 Help Save & Exit Submi 3 ** 005454 eBook Type here to search Direct labour-hours Machine-hours Machine setups Production orders Shipments Unit product cost Total Expected Activity K425 K425 160 200 3 3 3 M67 1,000 3,000 6 6 Required: Compute the unit product cost of each of the products listed above. (Round your answers to 2 decimal places.) 20 M67 < Prev (> 2 of 2 Next > Harrison Company makes two products and uses a conventional costing system in which a single plantwide, predetermined overhea rate is computed based on direct labour-hours. These products are customized to some degree for specific customers. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labour cost per unit Direct labour-hours per unit Number of units produced Unit product cost Required: 1. The company s manufacturing overhead costs for the year are expected to be $870,000. Using the company s traditional costing system, compute the unit product costs for the two products. (Do not round intermediate calculations and round your final answe to 2 decimal places.) Rascon Rascon Parcel $29.30 $ 23.10 19.80 $ 4.80 0.90 0.40 31,000 121,000 Parcel $ 00:57:54 eBook Mc Graw Hill Education Engineering design time (in hours) 2. Management is considering an ABC system in which half of the overhead would continue to be allocated on the basis of direct labour-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year: Unit product cost Rascon Rascon 6,200 Parcel Parcel 3,100 Compute the unit product costs for the two products using the proposed ABC system. (Do not round intermediate calculations and round your final answers to 2 decimal places.) 3. This part of the question is not part of your Connect assignment. Prev Total 9,300 1 of 2 # Help D Save & E Next > to meducation.com/ext/map/index.html?_con-con&external browser-08launchUrl https%253A%252F%252Fims.mheducation.com%252Fmghmiddlewwe2121meproduct. 52 Chapter 5 5:48 Activity Cost Pool Labour related Machine related Machine setups Klumper Corporation is a diversified manufacturer of industrial goods. The company s ABC system has the following six activity cost pools and activity rates: Production orders Shipments General factory Direct materials cost per unit Direct labour cost per unit Number of units produced per year Direct labour-hours Machine-hours Machine setups Production orders. Shipments Activity Rates $ 18.00 per direct labour-hour 18.00 per machine-hour 50.00 per setup 120.00 per order Cost and activity data have been supplied for the following products: K425 M67 $212.00 $126.00 $ 11.50 $ 7.20 400 4,000 18.00 per shipment 38.00 per direct labour-hour Total Expected Activity Savod K425 160 200 3 3 3 M67 1,000 3,000 6 6 20 Help Save & Exit Submi 3 ** 005454 eBook Type here to search Direct labour-hours Machine-hours Machine setups Production orders Shipments Unit product cost Total Expected Activity K425 K425 160 200 3 3 3 M67 1,000 3,000 6 6 Required: Compute the unit product cost of each of the products listed above. (Round your answers to 2 decimal places.) 20 M67 < Prev (> 2 of 2 Next >

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Product cost statement under traditional costing method Racson Parcel Direct material cost pe... View the full answer