Question: This work is due very soon help me please! Management accounting work please help me fill all the answer boxes Problem 5-55 Production-Based Costing versus

This work is due very soon help me please! Management accounting work please help me fill all the answer boxes

This work is due very soon help me please! Management accounting workplease help me fill all the answer boxes Problem 5-55 Production-Based Costingversus Activity-Based Costing, Assigning Costs to Activities, Resource Drivers Willow Company produceslawnmowers. One of its plants produces two versions of mowers: a basicmodel and a deluxe model. The deluxe model has a sturdier frame,a higher horsepower engine, a wider blade, and mulching capability. At the

Problem 5-55 Production-Based Costing versus Activity-Based Costing, Assigning Costs to Activities, Resource Drivers Willow Company produces lawnmowers. One of its plants produces two versions of mowers: a basic model and a deluxe model. The deluxe model has a sturdier frame, a higher horsepower engine, a wider blade, and mulching capability. At the beginning of the year, the following data were prepared for this plant: Additionally, the following overhead activity costs are reported: Facility-level costs are allocated in proportion to machine hours (provides a measure of time the facility is used by each product). Receiving and materials handling use three inputs: two forklifts, gasoline to operate the forklift, and three operators. The three operators are paid a salary of $40,000 each. The operators spend 25% of their time on the receiving activity and 75% on moving goods (materials handling). Gasoline costs $3 per move. Depreciation amounts to $8,000 per forklift per year. 1. Labor and gasoline are driver tracing. Labor Gasoline Depreciation Total cost 2. Plantwide rate = Unit cost: Prime costs Overhead Time = Resource Driver Moves = Resource Driver Time = Resource Driver Total overhead / Totaldirectlaborhours= Rate per DLH Deluxe 3. Activity rates: Maintenance Overhead cost / Activity = Rate Maintenance Materials handling Setting up Purchasing Receiving Paying suppliers Providing space per maintenance hour per engineering hour per move per setup per requisition per order processed per invoice processed per machine hour Unit cost: Prime costs: Overhead: Maintenance: Basic Deluxe Engineering: Basic Deluxe Materials handling: Basic Deluxe Setting up: Basic Deluxe Purchasing: Basic Deluxe Receiving: Basic Deluxe Paying suppliers: Basic Deluxe Providing space: Basic Deluxe Total Units produced Unit cost (ABC) Unit cost (traditional) Rate x Activity Deluxe 4. Consumption ratios: Maintenance Engineering Materials handling Setups Purchasing Receiving Paying suppliers Providing space Deluxe When products consume activities in the same proportion, the activities with the same proportions can be combined into one pool. This is so because the pooled costs will be assigned in the same proportion as the individual activity costs. Using these consumption ratios as a guide, we create four pools, reducing the number of rates from 8 to 4

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