Hayes Company manufactures two products, A and B. Actual year-end data regarding the two products follow:...
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Hayes Company manufactures two products, A and B. Actual year-end data regarding the two products follow: Direct Labor Hours Product per Total Direct Production Labor Hours Annual Unit A 1.8 5,000 units 9,000 30,000 units 0.9 27.000 Total 36,000 Additional information about Hayes Company follows: • Product A required $72 in direct material per unit, and product B required $50. • The direct labor rate was $10 per hour. • Manufacturing overhead totaled $1,800,000. Assume Hayes applies overhead at the end of the year using actual numbers so that under or over application is not an issue. Calculate the cost per unit for each product using job order costing with direct labor hours as the base. (7 points) Create a table to organize your answer. Now assume the company uses activity-based costing to apply overhead cost to products. Three activity centers have been identified as follows: Annual Events or Transactions Activity Center Cost Driver Traceable Produc Produc Costs Total tA Machine # of Setups $360,000 50 100 150 Setups Special Processing CPU Minutes $180,000 12,000 0 12,000 General Direct $1.260.000 9,000 27,000 36,000 Factory labor-hours Total $1,800,000 Calculate the cost per unit for each product using activity-based costing. (8 points) Create a table to organize your answer. B. Hayes Company manufactures two products, A and B. Actual year-end data regarding the two products follow: Direct Labor Hours Product per Total Direct Production Labor Hours Annual Unit A 1.8 5,000 units 9,000 30,000 units 0.9 27.000 Total 36,000 Additional information about Hayes Company follows: • Product A required $72 in direct material per unit, and product B required $50. • The direct labor rate was $10 per hour. • Manufacturing overhead totaled $1,800,000. Assume Hayes applies overhead at the end of the year using actual numbers so that under or over application is not an issue. Calculate the cost per unit for each product using job order costing with direct labor hours as the base. (7 points) Create a table to organize your answer. Now assume the company uses activity-based costing to apply overhead cost to products. Three activity centers have been identified as follows: Annual Events or Transactions Activity Center Cost Driver Traceable Produc Produc Costs Total tA Machine # of Setups $360,000 50 100 150 Setups Special Processing CPU Minutes $180,000 12,000 0 12,000 General Direct $1.260.000 9,000 27,000 36,000 Factory labor-hours Total $1,800,000 Calculate the cost per unit for each product using activity-based costing. (8 points) Create a table to organize your answer. B.
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1 Direct materials unit A 72 50 Direct labor unit 18 Manufacturing overhead unit Total cost 90 45 ... View the full answer
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
Posted Date:
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