Question: Need some help with the following. Please explain how the answer came about instead of only writing the answers. The purpose of this is to






Need some help with the following. Please explain how the answer came about instead of only writing the answers. The purpose of this is to learn and without an explanation, this is all a waste of time. Thank you so much in advance.
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After reading an article about activity-based costing in a tradejournal for the furniture industry, Santana Rey wondered if it was time to critically analyze overhead costs at Business Solutions. In a recent month, Santana found that setup costs, inspection costs, and utility costs made up most of its overhead. Additional information about overhead follows. Activity Cost Driver Setting up machinfes $21,459 29 batches Inspecting components $ 4.669 41668 parts Providing utilities $ 9,209 4,666 machine hours Overhead has been applied to output at a rate of 55% of direct labor costs. The following data pertain to Job 615. Direct materials $2,469 Direct labor $3,693 Batches 7 batches Number of parts 578 parts Machine hours 526 machine hours The following data relates to Spurrier Company's estimated amounts for next year. Estimated : Department 1 Department 2 Manufacturing overhead costs $1, 360, 000 $3, 560, 000 Direct labor hours 553, 000 DLH 803, 000 DLH Machine hours 103, 000 MH 37 , 000 MH What is the company's plantwide overhead rate if direct labor hours are the allocation base? (Round your answer to two decimal places.)The following information relates to overhead cost at Chocolates by Jacki for the current year. N Total costs and distribution of resource consumption across activity cost pools: W 4 Activity Cost Pools UT Customer Product Customer Total Cost Orders Development Relations Other Total 6 Production Department: 7 Indirect factory wages $ 400,000 50% 30% 15% 5% 100% 8 Factory equipment depreciation 150,000 55% 30% 0% 15% 100% 9 Factory utilities 120,000 59% 34% 0% 7% 100% 10 Factory property taxes and insurance 75,000 57% 33% 0% 10% 100% 11 12 General Administrative Department: 13 Administrative wages and salaries 275,000 20% 10% 40% 30% 100% 14 Office equipment depreciation 40,000 32% 16% 15% 37% 100% 15 Administrative property taxes and insurance 60,000 0% 0% 0% 100% 100% 16 17 Marketing Department: 18 Marketing wages and salaries 150,000 20% 10% 40% 30% 100% 19 Selling expenses 100,000 32% 16% 15% 37% 100% 20 21 Use the data to complete a First-Stage Allocation to Activity Cost Pools. 22 When completing the table, copy formulas as appropriate. 7223 24 Activity Cost Pools 25 Total 26 Production Department: 27 28 29 30 31 32 General Administration Department: 33 34 35 36 37 Marketing Department: 38 39 40 41 Total 42 43 44 Sheet1 + 1Overhead Assigned Activity Driver Activity rate Total Overhead Cost Product A Engineering support 10 modifications per modification Electricity 2,000 machine hours per machine hour Setup 95 batches per batch Total overhead costs assigned $ 0 Total units produced Overhead cost per unit Total manufacturing costs Product A Direct Materials per unit $ 14.00 Direct Labor per unit 6.00 Overhead per unit 0.00 Total manufacturing cost per unitMarket price Manufacturing cost per unit (22.61) Gross prot (loss) per unit Gross prot (loss) per unit Units purchased per customer Gross prot (loss) per customer Gross prot (loss) per customer Customer service cost per customer Prot (loss) per customer Is the prot adequate using ABC? The following data are for the two products produced by Tadros Company. Product A Product B Direct materials $14 per unit $24 per unit Direct labor hours 8.3 DLH per unit 1.6 DLH per unit Machine hours 8.2 MH per unit 1.2 MH per unit Batches 95 batches 198 batches Volume 18,888 units 2,888 units Engineering modifications 18 modifications 58 modifications Number of customers 588 customers 488 customers Market price $36 per unit $95 per unit per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support $26,588 Engineering modifications Electricity 17,688 Machine hours Setup costs 41,888 Batches Nonmanufacturing Customer service 71,888 Number of customers A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Act1v1ty COSt Budgeted Product A Product B Product C Pool Cost Activity 1 $ 84,999 7,499 19,499 21,499 Activity 2 $ 59,999 8,499 15,499 9,499 Activity 3 $119,999 3,999 2,499 3,925 Which of the following statements is true regarding this company's activity rates
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