Information is given below Activity Purchasing Materials handling Quality control Roasting Blending Packaging Total factory overhead cost
Fantastic news! We've Found the answer you've been seeking!
Question:
Information is given below
Transcribed Image Text:
Activity Purchasing Materials handling Quality control Roasting Blending Packaging Total factory overhead cost Cost Driver Purchase orders Budgeted sales Batch size Setups Purchase order size Roasting time Blending time Packaging time Setups Batches Roasting hours Blending hours Packaging hours Mona Loa 100,800 pounds 9,200 pounds 3 per batch 24,200 pounds Budgeted Driver Consumption 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds 1,078 1,720 640 Data regarding the current year's production of just two of its lines, Mona Loa and Malaysian, follow. There is no beginning or ending direct materials inventory for either of these coffees. 95,300 32,800 25,200 Budgeted Cost $ 571,000 712,000 136,000 953,000 328,000 252,000 $ 2,952,000 Malaysian 1,920 pounds 420 pounds 3 per batch 420 pounds 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds Required: 1. Using Coffee Bean Incorporated's current product costing system, a. Determine the company's predetermined overhead rate using direct labor cost as the single cost driver. b. Determine the full product costs and selling prices of one pound of Mona Loa coffee and one pound of Malaysian coffee. 2. Using an activity-based costing approach, develop a new product cost for 1 pound of Mona Loa coffee and 1 pound of Malaysian coffee. Allocate all overhead costs to the 100,800 pounds of Mona Loa and the 1,920 pounds of Malaysian. Activity Purchasing Materials handling Quality control Roasting Blending Packaging Total factory overhead cost Cost Driver Purchase orders Budgeted sales Batch size Setups Purchase order size Roasting time Blending time Packaging time Setups Batches Roasting hours Blending hours Packaging hours Mona Loa 100,800 pounds 9,200 pounds 3 per batch 24,200 pounds Budgeted Driver Consumption 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds 1,078 1,720 640 Data regarding the current year's production of just two of its lines, Mona Loa and Malaysian, follow. There is no beginning or ending direct materials inventory for either of these coffees. 95,300 32,800 25,200 Budgeted Cost $ 571,000 712,000 136,000 953,000 328,000 252,000 $ 2,952,000 Malaysian 1,920 pounds 420 pounds 3 per batch 420 pounds 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds Required: 1. Using Coffee Bean Incorporated's current product costing system, a. Determine the company's predetermined overhead rate using direct labor cost as the single cost driver. b. Determine the full product costs and selling prices of one pound of Mona Loa coffee and one pound of Malaysian coffee. 2. Using an activity-based costing approach, develop a new product cost for 1 pound of Mona Loa coffee and 1 pound of Malaysian coffee. Allocate all overhead costs to the 100,800 pounds of Mona Loa and the 1,920 pounds of Malaysian. Activity Purchasing Materials handling Quality control Roasting Blending Packaging Total factory overhead cost Cost Driver Purchase orders Budgeted sales Batch size Setups Purchase order size Roasting time Blending time Packaging time Setups Batches Roasting hours Blending hours Packaging hours Mona Loa 100,800 pounds 9,200 pounds 3 per batch 24,200 pounds Budgeted Driver Consumption 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds 1,078 1,720 640 Data regarding the current year's production of just two of its lines, Mona Loa and Malaysian, follow. There is no beginning or ending direct materials inventory for either of these coffees. 95,300 32,800 25,200 Budgeted Cost $ 571,000 712,000 136,000 953,000 328,000 252,000 $ 2,952,000 Malaysian 1,920 pounds 420 pounds 3 per batch 420 pounds 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds Required: 1. Using Coffee Bean Incorporated's current product costing system, a. Determine the company's predetermined overhead rate using direct labor cost as the single cost driver. b. Determine the full product costs and selling prices of one pound of Mona Loa coffee and one pound of Malaysian coffee. 2. Using an activity-based costing approach, develop a new product cost for 1 pound of Mona Loa coffee and 1 pound of Malaysian coffee. Allocate all overhead costs to the 100,800 pounds of Mona Loa and the 1,920 pounds of Malaysian. Activity Purchasing Materials handling Quality control Roasting Blending Packaging Total factory overhead cost Cost Driver Purchase orders Budgeted sales Batch size Setups Purchase order size Roasting time Blending time Packaging time Setups Batches Roasting hours Blending hours Packaging hours Mona Loa 100,800 pounds 9,200 pounds 3 per batch 24,200 pounds Budgeted Driver Consumption 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds 1,078 1,720 640 Data regarding the current year's production of just two of its lines, Mona Loa and Malaysian, follow. There is no beginning or ending direct materials inventory for either of these coffees. 95,300 32,800 25,200 Budgeted Cost $ 571,000 712,000 136,000 953,000 328,000 252,000 $ 2,952,000 Malaysian 1,920 pounds 420 pounds 3 per batch 420 pounds 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds Required: 1. Using Coffee Bean Incorporated's current product costing system, a. Determine the company's predetermined overhead rate using direct labor cost as the single cost driver. b. Determine the full product costs and selling prices of one pound of Mona Loa coffee and one pound of Malaysian coffee. 2. Using an activity-based costing approach, develop a new product cost for 1 pound of Mona Loa coffee and 1 pound of Malaysian coffee. Allocate all overhead costs to the 100,800 pounds of Mona Loa and the 1,920 pounds of Malaysian.
Expert Answer:
Answer rating: 100% (QA)
1a To calculate the predetermined overhead rate using direct labor cost ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
Coffee Bean, Inc. (CBI), is a processor and distributor of a variety of blends of coffee. The company buys coffee beans from around the world and roasts, blends, and packages them for resale. CBI...
-
Java Inc. is a distributor and processor of a variety of different blends of coffee. The company buys coffee beans from around the world and roasts, blends, and packages them for resale. Java Inc....
-
Java Inc. is a distributor and processor of a variety of different blends of coffee. The company buys coffee beans from around the world and roasts, blends, and packages them for resale. Java Inc....
-
Power Company acquired 80 percent of Solar Company's outstanding common stock for $200,000 cash on January 2, 2021. The two companies continued to operate as separate entities after the combination....
-
Comprehensive Receivables Problem Braddock Inc. had the following long-term receivable account balances at December 31, 2009. Note receivable from sale of division $1,500,000 Note receivable from...
-
Cancer patients and their physicians face many decisions related to treatment options. Depending on the type of cancer, the location of the cancer, and patient history, treatment options can include...
-
What the procedures are for a third-party stakeholder to deposit funds with the court?
-
Sixty-three percent of U.S. adults oppose special taxes on junk food and soda. You randomly select 10 U.S. adults. Find the probability that the number of U.S. adults who oppose special taxes on junk...
-
Term Structure of Interest Rates.Your investment company's trading system has be-100+20come unstable after a recent update so that your superiors ask you to verify the calculations displayed on the...
-
Dominique Fouque owns and operates Dominique's Doll House. She has a small shop in which she sells new and antique dolls. She is particularly well known for her collection of antique Ken and Barbie...
-
Revise any of the following sentence definitions that needrevision: 1. A thermometer measures temperature. 2. The spark plugs are the things that ignite the air-gas mixturein a cylinder. 3. Parallel...
-
what is the primary concern of equipment type, data center location, and power specifications.to create better security boundaries and enhance control over network traffic while undergoes expansion...
-
The ABC company makes a product for $5. marketing research revealed that direct mailing of a product sample is very effective in creating loyal customers. in addition to the unit cost of the sample...
-
According to the Code of Conduct for the Teachers in Namibia, (Amendment to the Education Act, (Act 16 of 2001), it is expected that teachers should maintain and adhere to certain minimum standards...
-
What does the Internet provide to its applications, similar to the services offered by the postal service?
-
The enzyme phosphofructokinase catalyzes the reaction: fructose-6-phosphate + ATP fructose-1,6-bisphosphate + ADP The diagram below shows the sites of interaction of ATP with the enzyme. The enzyme...
-
Compare and contrast the different types of risks that might negatively affect a projects outcome and describe methods and/or procedures that the project manager can use to mitigate the negative...
-
It is possible to investigate the thermo chemical properties of hydrocarbons with molecular modeling methods. (a) Use electronic structure software to predict cHo values for the alkanes methane...
-
If the balance in Accounts Receivable increases during a period, how will this increase be recognized using the indirect method of computing the net cash provided by operating activities?
-
The American Association of Acupuncturists is a professional association for acupuncturists that has 10,000 members. The association operates from a central headquarters but has local chapters...
-
Describe the three broad categories of customer value propositions.
-
How does electronic commerce differ from EDI? What are the implications of these differences to the control and auditability of a company?
-
A company involved in e-commerce would expect a firewall to do all of the following except: a. Intercept traffic that meets specific criteria and send the traffic back to the originator of the...
-
To obtain evidence that user identification and password control procedures are functioning as designed, an auditor would most likely a. Attempt to sign onto the system using invalid user...
Study smarter with the SolutionInn App