A company manufacturing two products furnishes the following data Annual output Product Output units Machine Hours Purchase Orders Machine set-ups A 5000 20000 160 20 B 60000 120000 384 44 Total 65000 140000 544 64 The annual overheads are as under. Rs Volume related activity costs 4,50,000 Set up related costs 9,20,000 Purchase related costs 5,18,000 Total 1,888,000 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.
Q: Vaughn is an electronics components manufacturer. Information about the company’s two products…
A: Overhead represents the indirect cost involved in the production process of the company.
Q: ABC Co. produces 3 products with the following production and cost information: Model X Model Y…
A: The question is based on the concept of Cost Accounting.
Q: Faz, Inc., manufactures and sells two products: Product XO and Product W7 Data concerning the…
A: Overheads refer to the amount indirectly spent by the company in the production of the product which…
Q: Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are…
A: Overhead application rate =Total estimated overhead/estimated direct labor hours
Q: 1. XYZ has the following cost components for 100,000 units of product for the year: P 200,000 Raw…
A: >Since you have asked multiple question, we will solve the first question for you. If you want…
Q: Zilong Company produces two products (A and B). Direct material and labor costs for Product A total…
A: Function Product A Product B Total overhead 1 2 hours x P10 per hour = P20 1 hour x…
Q: .If total overhead is assigned to A and B on the basis of direct labor hours, Product A will have an…
A: Hours required per unit in each function (Table 1) Products Function 1 Function 2 Function 3…
Q: JYD Corporation produces three products. The production and cost data show the following: Product…
A: solution : let us first note the total overhead cost Setups $ 450,000 Shipping…
Q: ABC Co. produces 3 products with the following production and cost information: Model X Model Y…
A: ABC is Activity based costing method in which all indirect costs or overhead costs are allocated on…
Q: Waterway is an electronics components manufacturer. Information about the company’s two products…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: overhead is allocated to Alpha
A: Single overhead rate = Total overhead/Total direct labor hours
Q: Zilong Company produces two products (A and B). Direct material and labor costs for Product A total…
A: Function Product A Product B Total overhead 1 2 hours x P10 per hour = P20 1 hour x P10 per hour…
Q: Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the…
A: Total Estimated overhead cost $467,200 Divide by Estimated Direct labor hours 3,200…
Q: Hollywood Co. computed an overhead rate for machining costs ($1,500,000) of $15 per machine hour.…
A: The overhead is applied to the production on the basis of predetermined overhead rate.
Q: ntps Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are…
A: Activity based costing: It is a method for allocating overhead cost to products based on consumption…
Q: ABC, process costing. Sander Company produces mathematical and nancial calculators and operates at…
A: Compute the overhead cost per unit for mathematical calculators.
Q: Assume the following information appears in the standard cost card for a business that makes only…
A: Labor spending variance = Actual labor cost - Standard labor cost
Q: The TOYO Manufacturing Company has the following financial information: · Manufacturing…
A: Total cost of manufacturing = costs of direct materials used + direct labor costs + manufacturing…
Q: Amalia Ltd currently manufactures and sells four products. Details of these products and relevant…
A: All amounts are in £.
Q: Compute for the total Factory overhead cost of Department H if the company uses the direct method…
A:
Q: Ellis Perry is an electronics components manufacturer. Information about the company’s two products…
A: Since you have asked two questions under a single question. And on 1st question there are sub-parts.…
Q: Assuming that Betty Company Ltd uses activity-based costing to apply overhead to production,…
A: Activity Based Costing:— This is the Method of Assigning Overhead to Products based on Activity. In…
Q: TisNTat, Inc., manufactures and sells two products: Product V5 and Product X3. Data concerning the…
A: Definition: Manufacturing businesses: This is a business that buys raw materials, processes those to…
Q: Vijay Company reports the following information regarding its production costs. $ 10.50 per unit $…
A: Absorption Costing: Under the absorption costing method, the product cost is calculated using all…
Q: ABC company manufactures two type of products product Y product X, and applies manufacturing…
A: Given that, Budgeted units of ; Product Y = 16,000 units Product X = 30,000 units Direct material…
Q: Ellis Perry is an electronics components manufacturer. Information about the company’s two products…
A:
Q: Ellis Perry is an electronics components manufacturer. Information about the company’s two products…
A: The question is related to traditional costing and Activity Based Costing. In the given question the…
Q: Spates, Inc., manufactures and sells two products: Product H2 and Product EO. Data concerning the…
A:
Q: Schwiesow Corporation has provided the following information: Cost per Cost per Unit Period Direct…
A: Total manufacturing overhead is the sum of fixed manufacturing overhead and the variable…
Q: Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the…
A: First, compute the activity rates for each activity as shown below:
Q: RHIANE CO. provided the following data from its activity-based costing systems: Total Cost P313,490…
A: Average cost per unit = Total cost /Number of units produced Here total cost includes direct…
Q: Which of the following statements concerning the unit product cost of Product W2 is true? (Round…
A: Product W2 Traditional costing: Estimated overhead cost 440000 Divide by Direct…
Q: Carolina Industries manufactures two products, Product C and Product D. The company estimated it…
A: ABC (Activity based costing) framework was created to manage the drawbacks of customary costing…
Q: The Homer Corporation produces two products, and reports the following production and cost…
A: Here in this question, we are are required to calculate activity rate set up activity. Activity rate…
Q: Values, Inc. manufactures audio equipment. The company estimates the following costs at normal…
A: The costs incurred on production are classified as direct and indirect cost.
Q: Waterway is an electronics components manufacturer. Information about the company’s two products…
A: Overhead cost per unit =. Allocated overhead / units produced
Q: A manufacturing company two products with the following information for each product: Product AA…
A:
Q: FIGHTING Manufacturing Corporation has a traditional costing system in which it applies…
A: In this question, we have been asked to find the manufacturing overhead by using two methods…
Q: SQU Corporation provides the firm's costing data: Selling Price (OMR) Direct Labour per Unit (OMR)…
A: Activity based costing method includes elimination of unnecessary costs by using cost drivers.
Q: Sheffield is an electronics components manufacturer. Information about the company's two products…
A: In the first question, the overheads are to be allocated on the basis of traditional direct…
Q: The J. Page Furniture Company has the following information available regarding costs at various…
A: Variable cost per unit remains the same within the relevant range of activity and changes with the…
Q: Olmo, Inc., manufactures and sells two products: Product KO and Product H9. The annual production…
A: Activity rate = Estimated overhead cost/Total expected activity Labor related activity rate =…
Q: The standard cost sheet for a product is shown. (Pleasee see attachment for original question…
A: Budget performance report Budget performance report refers to a report prepared for the purpose of…
Q: Assume that department C applies factory overhead based on units produced with an estimate of 5,000…
A: Calculate budgeted factory overheads: Budgeted factory overhead=Budgeted…
Q: Trini Company set the following standard costs per unit for its single product Direct materials (30…
A: Cost Variance: It is the difference between actual cost incurred and the budgeted or planned…
Q: Using a traditional, volume-based overhead rate, determine the overhead cost per unit of the Regular…
A: “Since you have posted a question with multiple subparts, we will solve the first three subparts…
Q: Windsor Co. incur $1067500 of overhead costs each year in its three main departments, machining…
A: Calculate activity rate for each department.
Q: ABC Co. produces 3 products with the following production and cost information: Model X Model Y…
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…
Q: Activity Rates $ 5.00 per direct labor-hour ivity Cost Pool Labor-related Machine-related Machine…
A: First we need to calculate Total Activity Cost.
A company manufacturing two products furnishes the following data Annual output
Product |
Output units |
Machine Hours |
Purchase Orders |
Machine set-ups |
A |
5000 |
20000 |
160 |
20 |
B |
60000 |
120000 |
384 |
44 |
Total |
65000 |
140000 |
544 |
64 |
The annual overheads are as under.
|
Rs |
Volume related activity costs |
4,50,000 |
Set up related costs |
9,20,000 |
Purchase related costs |
5,18,000 |
Total |
1,888,000 |
You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?A company manufacturing two products furnishers the following data for a year: Product Annual Total Total number Total Output (units) of purchase orders machine number of hours set ups A 750 1200 85 15 B 450 800 115 10 1200 2000 200 25 The annual overheads are as under: Volume related activity costs RO 55000 Set up related costs RO 120000 Purchase related costs RO 85000 Total RO 260000 You are required to calculate the cost per unit of each product A and B based on: a. Traditional method of charging overheads b. Activity based costing methodA company has the following overhead costs and activities: Estimated Expected Activity Product V Product W Product X Overhead Activities and Activity Measures Machine setups (setups) Processing customer orders (orders) Assembling products (assembly-hours) $9,178.00 Cost S7,234.50 $3,565.50 69 12 10 20 21 492 697 111 4. A company sells two products, one with sales of $10,000 and variable expenses of $2,500, another with sales of $46,000 and variable expenses of $15,420. Fixed expenses are $33,100. Breakeven point for the whole company is close to: А. 833,100 В. $22,900 C. $51,020 D. $48,676 A company that reduces the proportion of variable costs in its cost structure will: A. enjoys higher stability in profits. B. increase its profits more when the economy is good. C. have a loss more easily when the economy is bad. D. be indifferent. 5. 6. is normally recorded on any financial statement but irrelevant in decision making which is not. A. Sunk cost B. Incremental cost C. Differential…
- 2. A company manufacturing two products furnishers the following data for a year: Product Annual Total Total number Total number Output (units) machine of purchase of set ups hours orders A 100 500 50 5 B 75 700 40 10 175 1200 90 15 The annual overheads are as under: Volume related activity costs RO 20000 Set up related costs RO 15000 Purchase related costs RO 35000 Total RO 70000 You are required to calculate the cost per unit of each product A and B based on: a. Traditional method of charging overheads b. Activity based costing method 本本本本本本**本本本本本 本 本*KPR manufactures deals in various products. Relevant details of the products are as under: AWAXAYAZ Estimated annual demand (units)5000100070008000 Sales price per unit (Rs.)150180154175 Material consumption: Q (Rs)2729.524.529.75 Labor hours (Rs)5056.2543.7562.5 Variable overheads (based on labor cost) 70%80%10%90% Fixed overheads per unit (Rs.)10201416 Machine hours required: Processing machine hours 56810 The capacity utilization is as under:Hours Processing machine 150,000 RequiredCompute the number of units of each product that the company should produce in order tomaximize the profit. (B) KPR manufactures is considering a special order for 20 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is Rs 184 and its unit product cost is Rs140.00 as shown below: Direct materials . . . . . . . . . . . . . . . . . . . . Rs 81.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . 42.00Manufacturing…The East Company manufactures several different products. Unit costs associated with Product ORD210 are as follows: Direct materials $54Direct manufacturing labor 8Variable manufacturing overhead 11Fixed manufacturing overhead 25 Sales commissions (2% of sales) 5Administrative salaries 12Total$115What are the period costs per unit associated with Product ORD203 ? Oa. $120 b. $50 c. $17© d $18
- Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs. Products Product 540X Product 137Y Product 2495 Sales Revenue $208,000 155,000 92.000 Total Costs Traditional $54,000 48,000 23.000 ABC $49,000 30,000 46,000Learned Corporation has provided the following information: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions a. Total product cost b. Total period cost Cost per Unit Cost per Period $ 5.80 $ 4.00 $ 1.60 c. Contribution margin per unit d. Total direct manufacturing cost e. Total indirect manufacturing cost $ 0.70 $ 0.60 Variable administrative expense Fixed selling and administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units? c. If the selling price is $23.30 per unit, what is the contribution margin per unit sold? Note: Round your answer to 2 decimal places. d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 7,000 units are produced, what is the total amount of indirect manufacturing…Asplund Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Cost per Unit $ 6.95 Cost per Period $ 3.60 $ 2.00 $ 20,800 $ 1.50 $ 0.45 $ 8,900 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,280 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,280 units? a. Total product cost b. Total period cost
- A Company establishes the following standards for the costs of one unit of its product. The standard production overhead costs per unit are bascd on direct-labor hours. Calculation for standard per unit cost is as follows: Std Cost Std Qty 3.00 kg | Direct Material Direct Labor Variable Overhead Fixed Overhead* |Total *based on practical capacity of 20,000 direct-labor hour per month Std Price/Rate $ 8.25 per kg $ 10.00 per hour $ 10.00 per hour $ 7.50 per hour 24.75 $ 20.00 2.00 hour $ 20.00 2.00 hour 15.00 2.00 hour 79.75 During December 2020, the Company purchased 30,000 kg of direct material at a total cost of $246,000. The total wages for December were $260,000, 75% of which were for direct labor. The Company manufactured 9,500 units of product during December 2020, using 28,400 kg of the direct material purchased in December and 18,900 direct-labor hours. Actual variable and fixed overhead cost were $200,000 and $150,000, respectively. The scheduled production for the month was…Amalia Ltd currently manufactures and sells four products. Details of these products and relevant information are given below, for one period.Product P1 P2 P3 P4Output (Unit) 240 200 160 240Machine hours 8 6 4 6 (per unit) Cost per unit: Direct material £80 £100 £60 £20Direct labour £56 £42 £28 £42 Production overheads: Indirect material £20,860Indirect labour £10,500Rent £7,200Insurance £4,200Depreciation £9,240 Production overheads are currently absorbed by using a plant-wide rate per machine hour. Required:(a) You have been asked by the financial director to calculate the cost per unit for each product. All overhead costs are absorbed on a machine hour basis (show your workings as full as possible).(b) Compare the traditional…O & https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%25 E pter 1 Assignment i Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Variable cost per unit sold W 90% Save & E= Che