Product-Costing Accuracy, Plantwide and Departmental Rates, ABC Escuha Company produces two type of calculators: scientific and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Product-Costing Accuracy, Plantwide and Departmental Rates, ABC Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products: Product-Related Data Units produced per year Prime costs Scientific 76,000 Business Direct labor hours Machine hours Production runs Inspection hours Maintenance hours $266,000 100,100 760,000 $2,660,000 1,001,000 51,100 511,000 100 150 2,000 3,000 2,250 9,000 Department Data Department 1 Department 2 Direct labor hours: Scientific calculator 74,700 25,400 Business calculator 120,120 880,880 Total 194,820 906,280 Machine hours: Scientific calculator 23,900 27,200 Business calculator 358.500 152.500 Total 382,400 179,700 Overhead costs: Setup costs $224,000 $224,000 Inspection costs 165,000 165,000 Power 244,000 149,000 Maintenance Total 207.000 $840,000 254,250 $792,250 1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor hours. Round your calculations and answers to the nearest cent. Plantwide rate Overhead cost per unit: per direct labor hour Scientific Business per unit per unit 2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 per machine hour Department 2 per direct labor hour Overhead cost per unit: Scientific Business per unit per unit Repeat using direct labor hours for Department 1 and machine hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 per direct labor hour Department 2 per machine hour Overhead cost per unit: Scientific per unit Business per unit 3. Compute the overhead cost per unit for each product using activity-based costing. Round your calculations and answers to the nearest cent. Scientific Business Overhead Cost per unit per unit Product-Costing Accuracy, Plantwide and Departmental Rates, ABC Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products: Product-Related Data Units produced per year Prime costs Scientific 76,000 Business Direct labor hours Machine hours Production runs Inspection hours Maintenance hours $266,000 100,100 760,000 $2,660,000 1,001,000 51,100 511,000 100 150 2,000 3,000 2,250 9,000 Department Data Department 1 Department 2 Direct labor hours: Scientific calculator 74,700 25,400 Business calculator 120,120 880,880 Total 194,820 906,280 Machine hours: Scientific calculator 23,900 27,200 Business calculator 358.500 152.500 Total 382,400 179,700 Overhead costs: Setup costs $224,000 $224,000 Inspection costs 165,000 165,000 Power 244,000 149,000 Maintenance Total 207.000 $840,000 254,250 $792,250 1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor hours. Round your calculations and answers to the nearest cent. Plantwide rate Overhead cost per unit: per direct labor hour Scientific Business per unit per unit 2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 per machine hour Department 2 per direct labor hour Overhead cost per unit: Scientific Business per unit per unit Repeat using direct labor hours for Department 1 and machine hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required. Departmental rates: Department 1 per direct labor hour Department 2 per machine hour Overhead cost per unit: Scientific per unit Business per unit 3. Compute the overhead cost per unit for each product using activity-based costing. Round your calculations and answers to the nearest cent. Scientific Business Overhead Cost per unit per unit
Expert Answer:
Answer rating: 100% (QA)
1 Plantwide Rate per Direct Labor Hour Total Direct Labor Hours 194820 Scientific 906280 Business 11... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
Students also viewed these accounting questions
-
Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data...
-
Gaffel Company produces two types of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the more popular. The following...
-
Different theories about early childhood inform approaches to children's learning and development. Early childhood educators draw upon a range of perspectives in their work ..." (EYLF p.12)....
-
Early in 2014, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2014 and was completed on...
-
How do human best live together in the world? Should we have no ruler but simply follow God's law? Should we have a king? Should materials be owned privately or shared in common? In addition, ask...
-
If a well-behaved investment alternative's internal rate of return (IRR) is equal to MARR, which of the following statements about the other measures of worth for this alternative must be true? 1....
-
Edington Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $15 and $25, respectively. Because of the intense competition Edington...
-
Write a three page paper on Compare and contrast Online Analytic Processing (OLAP) and Online Transaction Processing (OLTP); also discuss Codds rules for TP databases and OLAP databases. Cite any...
-
Consider the portfolios below. Portfolio Expected Return (%) Risk (%) A 13% 17% B 12% 18% 0 18% 30% Answer the following question based on this information. Which of the portfolios would NOT be on...
-
A compass needle has a magnetic dipole moment of ||=0.75Am2. It is immersed in a uniform magnetic field of |B|= 3.0010^5T. How much work is required to rotate this compass needle from aligned with...
-
A call bull spread can be constructed by simultaneously buying a call option at a strike price of K and selling a call option at a strike price of K2, where K K2, and the options have the same...
-
You measure the mass of your sample of hair gel on a top-loading balance and the value is 3.799 x 103 mg. You fill a graduated cylinder with 40.00 mL of water, and when the hair gel was added the...
-
While completing form 5402EZ, a California tax payer used the Non- refundable Renter's Credit Qualification Record to determine if they could take a credit on Line 19. Their answers to the questions...
-
-What is the simple interest rate on a $1050 investment paying $738.15 interest in 19 years? -Chasity wants $9,000 saved in 3 years to make a down payment on a house. How much money should she invest...
-
a. Suppose that a college education creates job-specific knowledge and skills that make people better workers. Also suppose that college-educated workers require higher wages than...
-
Banner Company acquires an 80% interest in Roller Company for $640,000 cash on January 1, 2013. The NCI has a fair value of $160,000. Any excess of cost over book value is attributed to goodwill. To...
-
Jonfran Company manufactures three different models of paper shredders including the waste container, which serves as the base. While the shredder heads are different for all three models, the waste...
-
Hepworth Credit Corporation is a wholly owned subsidiary of a large manufacturer of computers. Hepworth is in the business of financing computers, software, and other services that the parent...
-
Calculating the Variable Overhead Spending and Efficiency Variances Refer to Cornerstone Exercise 9.6. Required: 1. Calculate the variable overhead spending variance using the formula approach. (If...
-
What a difference a single outlier can make! The data set in Table 7.7 presents a collection of ordered pairs \((x, y)\). a. Using Minitab, draw a scatterplot and run a simple linear regression...
-
A plant manager wants to estimate how the number of units produced at a plant is affected by the number of employees. The data in Table 7.9 gives a random sample of the number of units produced and...
-
Can the use of social media stress you out? A researcher is interested in finding out whether college students who extensively use social media tend to have higher levels of stress. To test this, a...
Study smarter with the SolutionInn App