Question: I need help completing a product costing worksheet. I attached all that information that will be needed. Instructions Activity Table - Alpha Activity Table -









Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question Instructions Mello Manufacturing Company is a diversified manufacturer that manufactures throe products (Alpha, Beta, and Omega) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller Identified the amount of factory overhead required by the celtical activities of the organization as follows: Activity Production Activity Cost Pool $270,84000 98,945.00 1 Setup Material handling 10,60400 44,100.00 Inspection Product engineering 139,380.00 Total $565,869.00 The activity bases identified for each activity are as follows Activity Base Activity Production Machine hours Activity-based product costing Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question Instructions The activity bases identified for each activity are as follows: Activity Activity Base Production Machine hours Setur Number of setups Material handling Number of parts Inspection Number of inspection hours Product engineering Number of engineering hours The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: + Machine Number of Number of Number of Number of Hours Setups Parts Inspection Hours Engineering Hours Units Alpha 1,061 55 84 467 130 1,341 Beta 767 125 158 281 183 927 Omega 392 205 240 232 192 542 Total 2,220 385 482 980 505 2,810 Activity-based product costing Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Questior Instructions Machino Number of Number of Number of Number of Hours Setups Parts Inspection Hours Engineering Hours Units Alpha 1,061 55 84 467 130 1,341 Beta 767 125 158 281 183 927 Omega 392 205 240 232 192 542 Total 2,220 385 482 980 505 2,810 Each product requires 40 minutes per unit of machine time. Required: Complete the Activity Tables for Alpha, Beta and Omega 1. Determine the activity rate for each activity. 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with all three products. 3. Why aren't the activity unit costs equal across all three products since they require the same machine time per unit? *# required, round all per-unit amounts to the nearest cent. Activity-based product costing Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question Instructions Activity Table - Alpha Complete the Activity Table for Alpha 1. Determine the activity rate for each activity. Enter these rates in the Actiwly Rato comunins.. 2. Use the activity rates in (t) to determine the total and per-unit activity costs associated with Alpha *# required, round all per unit amounts to the nearest cent. Alpha Activity Activity Base Activity Activity Usage Rate Cost 1 Production $ $ > Setup $ 1 Material handling s 1 Inspection y-based product costing ilructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question uctions Activity Table - Alpha Alpha Activity Activity Base Activity Activity Usage Rate Cost Production $ > Setup $ Material handling S > Inspection $ > Product Engineering Total activity cost $ Number of units Activity cost per unit $ Activity-based product costing - Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question - Instructions Activity Table - Beta Complete the Activity Table for Beta. 1. Determine the activity rate for each activity, Enter these rates in the Activity Rato columns." 2. Use the activity rates in (t) to determine the total and per-unit activity costs associated with Beta. "if required, round all per-unit amounts to the nearest cent. Beta Activity Activity Base Activity Activity Ea Usage Rate Cost $ Production S Setup $ Material handling S Inspection $ 1 $ 1 Product Engineering Total activity cost ctivity-based product costing - Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question Instructions Activity Table - Beta required, ruunu di puros Tu STCOMIC Beta Activity Activity Base Activity Activity Usage Rate Cost $ Production $ Ea Setup $ Material handling in > $ $ Inspection 1 > Product Engineering s s Total activity cost Number of units I Activity cost per unit ity-based product costing structions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question ructions Activity Table - Beta Activity Table - Omega Complete the Activity Table for Omega 1. Determine the activity rate for each activity. Enter these rates in the Activity Rate columns 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with Omega." "If required, round all per-unit amounts to the nearest cent. Omega Activity S Activity Base Activity Activity M Usage Rato Cost in Production $ > P Setup $ TC Material handling Inspection A tivity-based product costing Final Question Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Instructions Activity Table - Beta Activity Table - Omega Omega Activity Activity Activity Activity Base Cost Rato Usage S $ Production s P Setup >> ES $ Material handling $ MInspection In Product Engineering $ S P Total activity cost TO Number of units $ Activity cost per unit ivity-based product costing Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question structions Activity Table - Beta Activity Table - Omega Final Question 3. Why aren't the activity unit costs equal across all three products since they require the same machine time por unit? The difference is because the products consume many activities in ratios different from the volume. P The difference is due to product cost distortions. P S The difference is due to machine inefficiencies. S M M M In Ini P TO
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