oma Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHS). The company has two products, R785 and N32Y, about which it has provided the following data: N32Y $54.70 $22.00 1.0 10,000 Direct labor-hours per unit Annual production (units) the company's estimated total manufacturing overhead for the year is $1,427,040 and the company's estimated total direct labor-hours for the year is 24,000. he company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Direct materials per unit Direct labor per unit Activities and Activity Measures Assembling products (direct labor-hours) Preparing batches (batches) Product support (product variations) Total Direct labor-hours Batches Product variations Multiple Choice OOOO $47.20 $59.83 $59.78 R785 $ 27.20 $ 8.80 0.4 35,000 $36.00 Expected Activity 8785 14,000 he unit product cost of product R785 under the company's traditional costing system is closest to 816 840 N32Y 10,000 1,152 408 Estimated Overhead Cost $ 672,000 255,840 499,200 $ 1,427,040 Total 24,000 1,968 1,248
oma Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHS). The company has two products, R785 and N32Y, about which it has provided the following data: N32Y $54.70 $22.00 1.0 10,000 Direct labor-hours per unit Annual production (units) the company's estimated total manufacturing overhead for the year is $1,427,040 and the company's estimated total direct labor-hours for the year is 24,000. he company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Direct materials per unit Direct labor per unit Activities and Activity Measures Assembling products (direct labor-hours) Preparing batches (batches) Product support (product variations) Total Direct labor-hours Batches Product variations Multiple Choice OOOO $47.20 $59.83 $59.78 R785 $ 27.20 $ 8.80 0.4 35,000 $36.00 Expected Activity 8785 14,000 he unit product cost of product R785 under the company's traditional costing system is closest to 816 840 N32Y 10,000 1,152 408 Estimated Overhead Cost $ 672,000 255,840 499,200 $ 1,427,040 Total 24,000 1,968 1,248
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 10E: Compute the total job cost for each of the following scenarios: a. If the direct labor cost method...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Poma Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHS). The company has two products, R785 and N32Y, about which it has provided the following data:
Direct materials per unit
Direct labor per unit
Direct labor-hours per unit
Annual production (units)
The company's estimated total manufacturing overhead for the year is $1,427,040 and the company's estimated total direct labor-hours for the year is 24,000.
The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:
Activities and Activity Measures
Assembling products (direct labor-hours)
Preparing batches (batches)
Product support (product variations)
Total
Direct labor-hours.
Batches
Product variations.
Multiple Choice
ο ο ο ο
$47.20
$59.83
$59.78
R78S
$ 27.20
$ 8.80
0.4
35,000
$36.00
R785
14,000
The unit product cost of product R78S under the company's traditional costing system is closest to:
N32Y
$ 54.70
$22.00
1.0
10,000
Expected Activity
816
840
Estimated
Overhead Cost
$ 672,000
255,840
499,200
$ 1,427,040
N32Y Total
10,000 24,000
1,152 1,968
408 1,248
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