Consumption Ratios Larsen, Inc., produces two types of electronic parts and has provided the following data:...

  

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Consumption Ratios Larsen, Inc., produces two types of electronic parts and has provided the following data: Units produced Direct labor hours Machine hours Overhead Activity Part X12 Machining Setups Inspecting products Purchasing 100,000 35,000 52,500 Part X12 Number of setups Testing hours Number of purchase orders There are four activities: machining, setting up, testing, and purchasing. 36 1,000 600 Part YK7 600,000 Part YK7 65,000 297,500 84 9,000 3,400 Total 100,000 Required: 1. Calculate the activity consumption ratios for each product. Round your answers to two decimal places. Consumption Ratios 350,000 120 10,000 4,000 Activity Driver 2. Calculate the consumption ratios for the plantwide rate (direct labor hours). Round your answers to two decimal places. Consumption Ratios 2. Calculate the consumption ratios for the plantwide rate (direct labor hours). Round your answers to two decimal places. Consumption Ratios Overhead Activity Plantwide: Manufacturing Which product is undercosted? Part X12 Part YK7 3. If the machine hours were used for the plantwide rate, would this remove the cost distortion of a plantwide rate? Consumption Ratios Larsen, Inc., produces two types of electronic parts and has provided the following data: Units produced Direct labor hours Machine hours Overhead Activity Part X12 Machining Setups Inspecting products Purchasing 100,000 35,000 52,500 Part X12 Number of setups Testing hours Number of purchase orders There are four activities: machining, setting up, testing, and purchasing. 36 1,000 600 Part YK7 600,000 Part YK7 65,000 297,500 84 9,000 3,400 Total 100,000 Required: 1. Calculate the activity consumption ratios for each product. Round your answers to two decimal places. Consumption Ratios 350,000 120 10,000 4,000 Activity Driver 2. Calculate the consumption ratios for the plantwide rate (direct labor hours). Round your answers to two decimal places. Consumption Ratios 2. Calculate the consumption ratios for the plantwide rate (direct labor hours). Round your answers to two decimal places. Consumption Ratios Overhead Activity Plantwide: Manufacturing Which product is undercosted? Part X12 Part YK7 3. If the machine hours were used for the plantwide rate, would this remove the cost distortion of a plantwide rate?

Answer rating: 100% (QA)

Solution 1 Consumption ratios overhead activity Part X12 Part YK7 a... View the full answer