Ellix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data...
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Ellix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data regarding the two products follow Product X200 X99 Direct Labor-Hours 1.8 DLHS per unit 0.9 DLH per unit Annual Production 5,000 units 30,000 units Total Direct Labor- Hours 9,000 DLHS 27,000 DLHS 36,000 DLHs Additional information about the company follows: a. Model X200 requires $72 in direct materials per unit, and model X99 requires $50. b. The direct labor workers are paid $20 per hour. c. The company has always used direct labor-hours as the allocation base for applying manufacturing overhead cost to products. d. Model X200 is more complex to manufacture than model X99 and requires special equipment. e. Because of the special work required in (d) above, the company is considering an activity-based absorption costing that applies manufacturing overhead cost to products using three activity cost pools: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Total Cost $ 360,000 180,000 1,260,000 X99 Estimated Total Activity X200 50 Total 100 12,000 9,000 150 12,000 27,000 36,000 $ 1,800,000 Required: 1. Assume the company continues applying overhead costs to products using direct labor-hours. a. Compute the plantwide predetermined overhead rate. b. Compute each model's unit product cost. 2. Assume the company decides to apply overhead cost to products using activity-based absorption costing. a. Compute the activity rate for each activity cost pool and determine the amount of overhead cost applied to each model. b. Compute each model's unit product cost Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2A Part 1 Part 2 Required 2B Assume the company continues applying overhead costs to products using direct labor-hours. Compute the plantwide predetermined overhead rate. redetermined overhead rate per DLH Required 1A Required 1B > Ellix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data regarding the two products follow Product X200 X99 Direct Labor-Hours 1.8 DLHS per unit 0.9 DLH per unit Annual Production 5,000 units 30,000 units Total Direct Labor- Hours 9,000 DLHS 27,000 DLHS 36,000 DLHs Additional information about the company follows: a. Model X200 requires $72 in direct materials per unit, and model X99 requires $50. b. The direct labor workers are paid $20 per hour. c. The company has always used direct labor-hours as the allocation base for applying manufacturing overhead cost to products. d. Model X200 is more complex to manufacture than model X99 and requires special equipment. e. Because of the special work required in (d) above, the company is considering an activity-based absorption costing that applies manufacturing overhead cost to products using three activity cost pools: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Total Cost $ 360,000 180,000 1,260,000 X99 Estimated Total Activity X200 50 Total 100 12,000 9,000 150 12,000 27,000 36,000 $ 1,800,000 Required: 1. Assume the company continues applying overhead costs to products using direct labor-hours. a. Compute the plantwide predetermined overhead rate. b. Compute each model's unit product cost. 2. Assume the company decides to apply overhead cost to products using activity-based absorption costing. a. Compute the activity rate for each activity cost pool and determine the amount of overhead cost applied to each model. b. Compute each model's unit product cost Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2A Part 1 Part 2 Required 2B Assume the company continues applying overhead costs to products using direct labor-hours. Compute the plantwide predetermined overhead rate. redetermined overhead rate per DLH Required 1A Required 1B >
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Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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