Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model...

 

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Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advanced features. Data on the two phones is as follows: Blue Expected production Direct materials and Direct labour costs Equipment setup Machine processing Quality control 50,000 phones Packaging/Shipping $25 Ring Company's accountant prepares the following budget that she plans to use to prepare an activity based analysis of the costs of Blue and Yellow: Blue Yellow Budgeted Cost 100 setups 60,000 machine hours Yellow 10,000 inspection hours 250 shipments 150,000 phones 2. Calculate the cost of the Blue Phone. $40 60 setups 440,000 machine hours 20,000 inspection hours 150 shipments Required: 1. Calculate the manufacturing overhead allocation rate for each activity using ABC $88,000 $1,750,000 $1,260,000 $240,000 3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advanced features. Data on the two phones is as follows: Blue Expected production Direct materials and Direct labour costs Equipment setup Machine processing Quality control 50,000 phones Packaging/Shipping $25 Ring Company's accountant prepares the following budget that she plans to use to prepare an activity based analysis of the costs of Blue and Yellow: Blue Yellow Budgeted Cost 100 setups 60,000 machine hours Yellow 10,000 inspection hours 250 shipments 150,000 phones 2. Calculate the cost of the Blue Phone. $40 60 setups 440,000 machine hours 20,000 inspection hours 150 shipments Required: 1. Calculate the manufacturing overhead allocation rate for each activity using ABC $88,000 $1,750,000 $1,260,000 $240,000 3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone

Answer rating: 100% (QA)

Certainly lets go through each requirement step by step 1 Calculate the manufacturing overhead allocation rate for each activity using ABC To calculat... View the full answer