EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 1 hour of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $722,201 in manufacturing overhead costs and produce 13,700 units of Product W and 68,500 units of Product S during the current year. Unit cost for materials and direct labor are: Direct material. Direct labor Product S $18 12 Required: a-1. Compute the predetermined overhead rate under the current method of allocation. a-2. Determine the unit product cost of each product for the current year. b. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: Activity Cost Pool Machine setups required Purchase orders issued Product W $30 21 Machine-hours required Maintenance requests issued Total Cost $ 262,240 46,209 218,640 195,112 $ 722,201 Product S 900 519 7,470 734 Total Activity Product W 2,080 114 10,750 948 Total 2,980 633 Complete this question by entering your answers in the tabs below. 18,220 1,682 Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. Req A1 Req A2 Req B Compute the predetermined overhead rate under the current method of allocation. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Req A1 Reg A2 Product S Product W Req B Determine the unit product cost of each product for the current year. (Round your answers to 2 decimal places.) Unit Product Cost Req A1 Req A2 Product S Product W Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (Round your answer to 2 decimal places.) Req B Unit Product Cost < Req A2 Req 8 > EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 1 hour of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $722,201 in manufacturing overhead costs and produce 13,700 units of Product W and 68,500 units of Product S during the current year. Unit cost for materials and direct labor are: Direct material. Direct labor Product S $18 12 Required: a-1. Compute the predetermined overhead rate under the current method of allocation. a-2. Determine the unit product cost of each product for the current year. b. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: Activity Cost Pool Machine setups required Purchase orders issued Product W $30 21 Machine-hours required Maintenance requests issued Total Cost $ 262,240 46,209 218,640 195,112 $ 722,201 Product S 900 519 7,470 734 Total Activity Product W 2,080 114 10,750 948 Total 2,980 633 Complete this question by entering your answers in the tabs below. 18,220 1,682 Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. Req A1 Req A2 Req B Compute the predetermined overhead rate under the current method of allocation. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Req A1 Reg A2 Product S Product W Req B Determine the unit product cost of each product for the current year. (Round your answers to 2 decimal places.) Unit Product Cost Req A1 Req A2 Product S Product W Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (Round your answer to 2 decimal places.) Req B Unit Product Cost < Req A2 Req 8 >
Expert Answer:
Answer rating: 100% (QA)
A1 Predetermined overhead 1031 rate Workings Estimated overhead cost 952405 Comput... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
Students also viewed these economics questions
-
A travel agency is attempting to enter a market where several competitors currently exist. What are the various customer needs that they should address? How will quality be measured? As the company...
-
Fry Corporation manufactures two products with the following characteristics. If Frys machine hours are limited to 2,000 per month, determine which product it shouldproduce. Contribution Margin per...
-
Ger Corporation manufactures two products with the following characteristics. If Gers machine hours are limited to 2,000 per month, determine which product it shouldproduce. Contribution Margin per...
-
Water flowing in a positive x-direction passes through a 90 elbow in a 6-inch-diameter pipeline and heads in a positive y-direction with a flow rate of 3.05 ft3/sec. Compute the magnitude and...
-
Describe the three-tier client-server model.
-
Edema is a common clinical problem. On your first day of a clinical rotation, you encounter four patients who have edema for different reasons. Your challenge is to explain the edema in terms of...
-
A researcher argues that ZIP codes are quantitative data because they measure location, with low numbers in the east and high numbers in the west. Is she correct? Why or why not?
-
A college student has been looking for a new tire for his car and has located the following alternatives: The student feels that the warranty period is a good estimate of the tire life and that a 10%...
-
In the table below include 2 types of non cash payment facilities in australia, ensure you describe their characteristics . Types of non cash payment facilities Characteristics Enter a response here...
-
Many processor architectures have a load with post-increment instIt is not possible to implement this instruction without either modifying the register file (adding another write port) or making the...
-
The manufacturing operations of Sheridan, Inc. had the following inventory balances for the month of January: Raw Materials Work in Process Finished Goods January 1 January 31 $13,680 23,940 Cost of...
-
Do I engage and involve middle managers sufficiently in wicked change problems?
-
What single change in the society or workplace would you consider to be the most important to achieve maximum gain in developing more women leaders in higher education?
-
What might be the main hindrances of people-focused awareness in your organization?
-
Why is information technology important for successful change management?
-
Do I take a critical approach when faced with a wicked problem, or, in other words, am I willing to unlearn and set aside previously used practices to address a unique, unprecedented issue in new...
-
Write a program that reads a list of words separated by commas from the console and prints them in alphabetical order (after sorting ).
-
Suppose that you could invest in the following projects but have only $30,000 to invest. How would you make your decision and which projects would you invest in? Project Cost $ 8,000 11,000 9,000...
-
What is the general transfer pricing rule? What is the transfer price that results from this rule when: a. There is a perfect market for the product? b. The selling division is operating below...
-
What are the advantages and disadvantages of a negotiated transfer price system?
-
Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets. Munoz currently uses plant wide...
-
What are some specific ways to choose effective images?
-
When should you use visuals?
-
What information does a Gantt chart convey?
Study smarter with the SolutionInn App