Padfolio Club makestwo products (Padfolios and Business Cards) for students to use during interview season. The...

 

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Padfolio Club makestwo products (Padfolios and Business Cards) for students to use during interview season. The company hastwo production departments (Forming and Assembly) and operates at capacity. The controller has asked you to compare plant-wide, department, and activity- based cost allocation. Direct Materialand Direct Labor is incurred in both production departments (Forming & Assembly) and is directly traced to the two product lines (Padfolios & Business Cards). There are also two types of overhead (Setup & Supervision) incurred in the departments. Overhead costs need to be allocated to the two product lines so the Quinnipiac Padfolio Club cancalculate the costs of each product line. Budgeted information for the vearended December 31.2017 is asfollows: Forming Department Direct Materials Direct Manufacturing Labor Padfolios Business Cards Total 24.000 $ 25,000 $ 41,000 $ 49,000 $ 17,000 $ 58,000 Overhead Costs Setup 22,500 Supervision $ 20,500 Assembly Department Business Cards Padfolios Total Direct Materials 4,500 $ 17,500 $ 24,500 20,000 $ 22,000 $ Direct Manufacturing Labor 24 39,500 Overhead Costs Setup 50,000 Supervision 24,000 Other information about the departments'activitiesfollows: Setup costs in each department vary with the number of batches processed in each department. The budgeted number of batchesfor each product line in each department is as follows: Setup Batches Padfolios Business Cards Total Forming Department Assembly Department 28 120 148 43 90 133 Supervision Costs: Vary with direct manufacturing labor costs in eadh department. Calculate the total budgeted cost of each product line (Padfolios vs. Business Cards) based on a single plant-wide overhead rate, if tota 1 overhead is allocated based on total direct costs. (Direct costs should be traced to the products as identified above. Indirect costs should be allocated to the products based on a single overhead allocation rate.) Alloc Base Budgeted Overhead Rate ОН Рool Alloc Base Description OH PoolAmount Allocation Rate Description Amount OH Rate 1 Total Costs Assiened Padfolios Business Cards Total Total Direct Costs Total Overhead Costs Total Manufacturing Costs Padfolio Club makestwo products (Padfolios and Business Cards) for students to use during interview season. The company hastwo production departments (Forming and Assembly) and operates at capacity. The controller has asked you to compare plant-wide, department, and activity- based cost allocation. Direct Materialand Direct Labor is incurred in both production departments (Forming & Assembly) and is directly traced to the two product lines (Padfolios & Business Cards). There are also two types of overhead (Setup & Supervision) incurred in the departments. Overhead costs need to be allocated to the two product lines so the Quinnipiac Padfolio Club cancalculate the costs of each product line. Budgeted information for the vearended December 31.2017 is asfollows: Forming Department Direct Materials Direct Manufacturing Labor Padfolios Business Cards Total 24.000 $ 25,000 $ 41,000 $ 49,000 $ 17,000 $ 58,000 Overhead Costs Setup 22,500 Supervision $ 20,500 Assembly Department Business Cards Padfolios Total Direct Materials 4,500 $ 17,500 $ 24,500 20,000 $ 22,000 $ Direct Manufacturing Labor 24 39,500 Overhead Costs Setup 50,000 Supervision 24,000 Other information about the departments'activitiesfollows: Setup costs in each department vary with the number of batches processed in each department. The budgeted number of batchesfor each product line in each department is as follows: Setup Batches Padfolios Business Cards Total Forming Department Assembly Department 28 120 148 43 90 133 Supervision Costs: Vary with direct manufacturing labor costs in eadh department. Calculate the total budgeted cost of each product line (Padfolios vs. Business Cards) based on a single plant-wide overhead rate, if tota 1 overhead is allocated based on total direct costs. (Direct costs should be traced to the products as identified above. Indirect costs should be allocated to the products based on a single overhead allocation rate.) Alloc Base Budgeted Overhead Rate ОН Рool Alloc Base Description OH PoolAmount Allocation Rate Description Amount OH Rate 1 Total Costs Assiened Padfolios Business Cards Total Total Direct Costs Total Overhead Costs Total Manufacturing Costs

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