prt A & B

a. Allocated Overhead Costs: Allocation Rate No. of Allocated Hours Cost 6,000 $ Type of Product Commercial Home Miniature Total 6,000 $ Try again! Try again Total Cost of Each Product Line and Combined Cost of All Three: Direct Materials $ 375,000 $ Direct Allocated Labor Overhead 60,000 $ Total $ 435,000 Type of Product Commercial Home Miniature Combined Totals $ 375,000 $ 60,000 $ Try again Try again in again $ 435,000 Try again! Cost Per Unit Computations Under Traditional Cost System: Type of Product Commercial Home Miniature Combined Total Total Cost 435,000 $ Cost Per Units Unit 15,000 $ 29.00 #DIV/0! #DIV/0! Try again #DIV/0! #DIV/0! $ 435.000 Try again b. Overhead Cost Allocation Under ABC: Batch Product Facility Total $360,000 Cost pool Cost drivers Base Rate Unit $360,000 # Machine hrs 80,000 $4.50 # Orders Sq. footage % Time % %% Product Facility Total Allocation for Commercial Games: Unit Batch Weight 10,000 x Rate $4.50 $0.00 Allocation S 45,000 $ correct Try again 10% $0.00 $ S Try again Try again $ 45,000 Try again Allocation for Home Games: Unit Batch Product Facility Total Weight X Rate Allocation $4.50 $0.00 20% $0.00 $ $ SPOS 14A Given P05-14 Allocation for Home Games: Unit Batch Product Facility Total Weight X Rate Allocation $4.50 $0.00 $0.00 $ Try again! 20% $ Try again! Try again! Try again! Try again! Batch Product Facility Total Allocation for Miniature Games: Unit Weight x Rate $4.50 Allocation $ Try again! $0.00 $ Try again! 70% $ Try again $0.00 $ Try again! $ Try again Total Cost of Each Product Line and Combined Cost of All Three: Direct Materials $ 375,000 $ Direct Allocated Labor Overhead Total 60,000 $ 45,000 $ 480,000 Type of Product Commercial Home Miniature Combined Totals $375,000 $ 60,000 $ 45,000 $ 480,000 Try again Try again Try again! Try again Cost Per Unit Computations Under ABC System: Total Cost $ 480,000 Type of Product Commercial Home Miniature Combined Total Units Cost Per Unit 15,000 $ 32.00 #DIV/0! #DIV/0! - Try again! #DIV/0! #DIV/01 $ 480,000 Try again FENWAY ELECTRONICS Category Unit S Cost Driver Machine hours Batch Total Pooled Cost Types of Costs 360,000 Indirect labor wages, supplies, factory utilities machine maintenance 194,400 Materials handling, inventory storage, labor for setups packaging, labeling and shipping, scheduling 105,600 Research and development 300,000 Rent, general utilities, maintenance, facility depreciation, Admin. Salaries Number of production orders Product Facility Time spent by research department Square footage Total Direct materials cost per unit Direct labor cost per hour Number of labor hours Number of machine hours Number of production orders Research and development time Number of units Square footage Commercial 25.00 $ 5 10.00 S 6.000 10,000 200 10% 15,000 20,000 Home Miniature 15.00 $ 12.00 8.00 $ 9.00 12,000 2,000 45,000 25,000 2. 20% 70% 45,000 14,000 50.000 30.000 20,000 80.000 3,000 100% 74,000 100,000