Question: Problem # 6 (35 points) The accounting department established the costs given in the following table for producing two products, X and Z, over a
Problem # 6 (35 points) The accounting department established the costs given in the following table for producing two products, X and Z, over a given time period.
(a) Give an example of typical costs that would be put in each of the 10 cost categories listed (7 points.)
(b) Determine the overhead and unit cost for each product in terms of direct labor cost (7 points.)
(c) Determine the overhead and unit cost for each product based on direct labor hours (DLH), (7 points).
(d) Determine the overall overhead rate per DLH and use it to determine the unit cost of product X (7 points).
(e) Determine the overhead and unit cost for each product based on the proportion of direct material costs (7 points).
Problem #6 (35 points) The accounting department established the costs given in the following table for producing two products, X and Z, over a given time period. Item Product Z Product X 3000 5000 90 Quantity Machine hours Direct labor hours (DLH) Factory floor space 70 400 600 150 50 Labor Rate $/h Labor Amount, h Material Cost S/unit Material Amount, units Cost $ 18.00 400 7,200 19,500 6.50 3000 Product X Direct labor Direct material Product Z Direct labor Direct rial 14.00 600 8,400 37,500 7.50 5000 (a) Give an example of typical costs that would be put in each of the 10 cost categories listed (7 points.) (b) Determine the overhead and unit cost for each product in terms of direct labor cost (7 points.) (c) Determine the overhead and unit cost for each product based on direct labor hours (DLH). (7 points). (d) Determine the overall overhead rate per DLH and use it to determine the unit cost of product X (7 points). (e) Determine the overhead and unit cost for each product based on the proportion of direct material costs (7 points)Step by Step Solution
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