ABC Corp adopted the ABC system. Data are as follows: Activity Set up Cost Driver No of Set ups No of bathes No of inspection Product Checking Quality control Budgeted Activity Budgeted Overhead 40.00 40.00 1,000.00 20,000.00 40,000.00 30,000.00 Actual data shows that: production is 1,000 units; direct labor hours are 2,000; Units per batch is 500 units; No. of set ups is 4; No. of inspections is 200; Direct materials used is 10 per unit and DL rate is 20 per hour. What is the total manufacturing cost of the company under ABC?

ABC Corp adopted the ABC system. Data are as follows: Activity Set up Cost Driver No of Set ups No of bathes No of inspection Product Checking Quality control Budgeted Activity Budgeted Overhead 40.00 40.00 1,000.00 20,000.00 40,000.00 30,000.00 Actual data shows that: production is 1,000 units; direct labor hours are 2,000; Units per batch is 500 units; No. of set ups is 4; No. of inspections is 200; Direct materials used is 10 per unit and DL rate is 20 per hour. What is the total manufacturing cost of the company under ABC?

Name: ABC Corp adopted the ABC system. Data are as follows:Budgeted Activit
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: ABC Corp adopted the ABC system. Data are as follows:Budgeted ActivityCost DriverNo of Set ups40.00No of bathes40.00No of inspection1,000.00ActivitySet upProduct CheckingQuality controlBudgeted Overhead20,000.0040,000.0030,000.00Actual data shows th

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Given the following information, determine the activity rate (rounded to the nearest cent) for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 11,000 $58,100 Inspections 25,200 $147,200 Assembly (dlh) 72,000 $375,700 a. $5.22 O b. $5.28 c. $5.84 O d. $5.37
Automatic Irrigation, Inc. is preparing its manufacturing overhead budget for the next year. Relevant data consist of the following Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Control Units to be produced (by quarters): 8,000 7,000 10,000 12,000 37,000 Direct labor time: 1 hour per unit Variable overhead costs per direct labor hour: Indirect Materials $0.80; Indirect Labor $1.10; and Maintenance $0.60. Fixed overhead costs per quarter: Supervisory salaries $19,250; depreciation $3,000; and maintenance $2,250. Required Prepare the manufacturing overhead budget for the next year showing quarterly data and the total amounts for the full year.
Honesty Company prepared the following budgeted information for the coming year:Factory overhead costs P 720,000Direct material costs P1,440,000Units of production 120,0000 unitsMachine hours 400,000 hoursDirect labor costs P 960,000Direct labor hours 200,000 hoursREQUIRED:1. Determine the applied overhead rates under each of the following bases. Round offpercentages to one decimal point and rates to the nearest whole centavo.a. Direct materials costsb. Direct labor costsc. Units of productiond. Direct labor hourse. Machine hours
[The following information applles to the questions displayed below.] ABC Corporation Is a service company that measures Its output based on the number of customers served. The company provided the following fixed and varlable cost estimates that It uses for budgeting purposes and the actual results for May as shown below: Actual Total for May $ 223,500 $ 126,000 20,400 S.44,300 Fixed Element Variable Element per Month per Customer Served $6,100 $ 1,500 Revenue Employee salaries and wages Travel expenses other expenses $ 68,000 $ 47,000 When preparing Its plannlng budget the company estimated that It would serve 35 customers per month; however, during May the company actually served 40 customers. 14. What activity varlance would Adger report In May with respect to Its revenue? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.) Activity variance
The following information is available for ABC Co.: Activity Pool Budgeted Amount Activity Base Setups 300,000 400,000 Quality Inspection 600,000 120,000 Assembly (direct labor hours) 2,000,000 400,000 COMPUTE FOR THE ACTIVITY RATE FOR SETUP a. 6.00 b. 0.75 c. 58.00 d. 5.09
Z Ltd has prepared the Budget for the production of 1,00, 000 units from a costing period as unuer. \table[[Particulars, Amount per unit (7)], [Raw materials,10.08], [Direct Labour,3], [Direct Expenses, 0.40], [Works Overhead (60% fixed), 10], [Administration Overhead (80% fixed), 1.60], [Sales Overhead (50% fixed), 0.80]] Actual production of the year is only 60, 000 units. Prepare the Budget for original and revised levels of output.
Wilco Inc. allocates overhead on the basis of direct labor hours. They report the following budgeted and actual data: Budgeted MOH Actual MOH Budgeted Direct Labor Hours Budgeted Machine Hours Actual Direct Labor Hours Actual Machine Hours How much is MOH Over/Under allocated for the period? O Underallocated by $4000 O Underallocated by $2000 Overallocated by $2000 O Overallocated by $4000 $80,000 $82,000 80,000 40,000 78,000 43,000
Q1. Prepare a Flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 70% and 80% capacity. Variable Overheads (60% capacity) Indirect Material = Rs. 6,000 Labour Rs. 18,000 Semi-variable overheads: Electricity (40% fixed) = Rs. 40,000 Repairs (80% fixed) = Rs. 2,400 Fixed Overheads: Depreciation Rs. 16,500 = Insurance = Rs. 4,500 Salaries= Rs. 20,000 Estimated Labour Hours 15,000 hrs T A ہے
Q1. Prepare a Flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 70% and 80% capacity. Variable Overheads (60% capacity) Indirect Material = Rs. 6,000 Labour Rs. 18,000 Semi-variable overheads: Electricity (40% fixed) = Rs. 40,000 Repairs (80% fixed) = Rs. 2,400 Fixed Overheads: Depreciation Rs. 16,500 = Insurance = Rs. 4,500 Salaries= Rs. 20,000 Estimated Labour Hours 15,000 hrs = E
Fee Ltd makes four products, A, B, C and D, and has produced the following budgeted figures for the forthcoming period:A B C DDemand (units) 4,000 1,000 1,800 1,500Income K 40,000 20,000 27,000 38,400 Costs KMaterial 12,000 8,000 12,000 12,000Labour 12,000 6,000 8,000 15,000Variable Overhead 2,000 1,000 1,700 2,400Fixed Overhead 6,000 4,000 5,000 6,000Labour is paid at K10 per hour and is limited to 3,800 hours for the period. Materials are bought at K20 per kg and 2400 kgs of material is available.Required:(a) Find the limiting factor if the company wishes to produce the budgeted units as above. (b) Calculate and determine the order of profitability. (c) Calculate the production mix that will maximize profit for the period and the profit that will result if that mix is produced. (d) Calculate the increase in profit if an extra 150 units of the limiting factor are made available.
Jefferson Company expects to incur $572,760 in manufacturing overhead costs during the current year. Other budget information follows: Direct labor hours Machine hours Department A 16,650 8,880 Required: a. Use direct labor hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead cost for each department. b. Use machine hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead cost for each department. c. Assume that Department A manufactured a product that required 160 direct labor hours and 85 machine hours. If overhead is allocated based on direct labor hours, how much overhead would be allocated to this product? d. Assume that Department A manufactured a product that required 160 direct labor hours and 85 machine hours. If overhead is allocated based on machine hours, how much overhead would be allocated to this product? Req A and B Req C and D Department B Department C 5,550 22, 200 11,100 13,320…
S Craftmore Machining reports the following budgeted overhead cost and related data for this year. Activity Assembly Budgeted Cost $ 458,250 70,500 23,500 Activity Cost Driver Direct labor hours (DLH) Engineering hours (EH) Machine hours (MH) Product design Electricity Budgeted Activity Usage 13,000 1,410 10,000 470 58,750 Setups $ 611,000 Setup Total Required: 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours. 2. Job 31 used 280 direct labor hours and Job 42 used 560 direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1. 3. Compute an activity rate for each activity using activity-based costing. 4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. Activity Cost Driver Direct labor hours (DLH) Engineering hours (EH) Machine hours (MH) Setups Required 1 Required 2 Activity Usage Job 31 280 33 60 3 Complete this question by entering your…