CHICKADE Chickadee Chemical Company has identified activity centers to which manufacturing overhead costs are assigned. The...

 

 

Transcribed Image Text:

CHICKADE Chickadee Chemical Company has identified activity centers to which manufacturing overhead costs are assigned. The cost pools and cost drivers for these centers are attached. The company's products and related production information are also attached for the current month. One direct labor hour costs $10.00, and the 200,000 lbs. of material were purchased for $360,000. Manufacturing overhead is applied to production based upon predetermined rates calculated for each activity center. REQUIRED: (1) (2) 500 Using the attached form, compute the predetermined manufacturing overhead rates for each activity center. Round your answers to two decimal places. Using the attached form, compute the total cost for each product and the cost per unit, using activity based costing. Round your answers for total costs to the nearest whole dollar and your answer for costs per unit to two decimal places. CHICKADEE CHEMICAL COMPANY MANUFACTURING OVERHEAD COST INFORMATION Activity Center Utilities Setup Materials Handling Machine Hours Direct Materials Used Direct Labor Hours Budgeted Cost Pool 300,000 Number of Setups Number of Units Produced $ 100,000 800,000 Budgeted Cost Driver CHICKADEE CHEMICAL COMPANY PRODUCTION INFORMATION FOR PRODUCTS FOR CURRENT MONTH Product A 50,000 machine hours 700 setups 200,000 lbs. material 35,000 75,000 lbs. 20,000 200 10,000 Product B 15,000 125,000 lbs. 25,000 500 5,000 (1) CHICKADEE CHEMICAL COMPANY CALCULATION OF ACTIVITY BASED COSTING PREDETERMINED MOH RATES Calculation Activity Utilities Setup Materials Handling Direct Materials Used: Direct Labor CHICKADEE CHEMICAL COMPANY ACTIVITY BASED COSTING CALCULATION OF TOTAL COSTS AND COST PER UNIT FOR PRODUCTS Product A Manufacturing Overhead Applied: Predetermined MOH Rate Total Costs Divided By Units Produced Cost Per Unit Product B CHICKADE Chickadee Chemical Company has identified activity centers to which manufacturing overhead costs are assigned. The cost pools and cost drivers for these centers are attached. The company's products and related production information are also attached for the current month. One direct labor hour costs $10.00, and the 200,000 lbs. of material were purchased for $360,000. Manufacturing overhead is applied to production based upon predetermined rates calculated for each activity center. REQUIRED: (1) (2) 500 Using the attached form, compute the predetermined manufacturing overhead rates for each activity center. Round your answers to two decimal places. Using the attached form, compute the total cost for each product and the cost per unit, using activity based costing. Round your answers for total costs to the nearest whole dollar and your answer for costs per unit to two decimal places. CHICKADEE CHEMICAL COMPANY MANUFACTURING OVERHEAD COST INFORMATION Activity Center Utilities Setup Materials Handling Machine Hours Direct Materials Used Direct Labor Hours Budgeted Cost Pool 300,000 Number of Setups Number of Units Produced $ 100,000 800,000 Budgeted Cost Driver CHICKADEE CHEMICAL COMPANY PRODUCTION INFORMATION FOR PRODUCTS FOR CURRENT MONTH Product A 50,000 machine hours 700 setups 200,000 lbs. material 35,000 75,000 lbs. 20,000 200 10,000 Product B 15,000 125,000 lbs. 25,000 500 5,000 (1) CHICKADEE CHEMICAL COMPANY CALCULATION OF ACTIVITY BASED COSTING PREDETERMINED MOH RATES Calculation Activity Utilities Setup Materials Handling Direct Materials Used: Direct Labor CHICKADEE CHEMICAL COMPANY ACTIVITY BASED COSTING CALCULATION OF TOTAL COSTS AND COST PER UNIT FOR PRODUCTS Product A Manufacturing Overhead Applied: Predetermined MOH Rate Total Costs Divided By Units Produced Cost Per Unit Product B

Answer rating: 100% (QA)

SOLUTION To compute the predetermined manufacturing overhead rates for each activity center we can use the provided budgeted cost information and cost ... View the full answer