Requlred InformationGreenwood Company manufactures two products-13.000 units of Product Y and 5,000 units of Product Z. The companyuses a plantwide overhead rate based on direct labor-hours. It is considering implementing an actīvity-based costing(ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information isavailable for the compay as a whole and for Products Y and Z.Activity Cost PoolMachiningMachine setupsProduction designGeneral factoryActivity MeasureMachine-hoursNumber of setupsNumber of productsDirect labor-hoursEstimatedOverheadCost$ 242,400$ 114,400$ 86,000$ 302,400ExpectedActivity12,000 MHs220 setups2 products12,000 DLHSActivity MeasureMachiningNumber of setupsNumber of productsDirect labor-hoursProduct Y8,20040Product Z3,80018018,2003,80012 Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your Intermedlatecalculations to 2 declmal places. Round your answers to 2 declmal places.)Product YProduct ZMachining cost< Prev12.13 14 15of 15Next >92 F AQI 61re to searchDELL96

ABC i.e Activity Based Costing is a method of Allocation of overhead to the respective product ,…

Answered: 2 Using the ABC system, what percentage…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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2. Change all of the numbers in the data area of your worksheet so that it looks like this: A 1 Chapter 3: Applying Excel 2 3 Data 4 Allocation base 5 Estimated manufacturing overhead cost Estimated total amount of the allocation base Actual manufacturing overhead cost 8 Actual total amount of the allocation base 6 7 Predetermined overhead rate Machine-hours $ B $ с 409,200 62,000 machine-hours 418,200 60,000 machine-hours If your formulas are correct, you should get the correct answers to the following questions. (a) What is the Predetermined overhead rate? (Round your answer to 2 decimal places.) per machine-hour
Maglie Company manufactures two video game consoles: handheld and home. The handheld consoles are smaller and less expens than the home consoles. The company only recently began producing the home model. Since the introduction of the new product. profits have been steadily declining. Management believes that the accounting system is not accurately allocating costs to products particularly because sales of the new product have been increasing Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have data from last year. Manufacturing overhead was $1,366,000 based on production of 340.000 handheld consoles and 89,000 home consoles. Direct labor and direct materials costs were as follows. Direct labor Materials Handheld $1,294, 500 790,000 Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead…
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Required: Prepare a quantitative comparison of the traditional and activity-based cost assignments.
Oriole Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2025 are as follows. Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Total budgeted overhead costs Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines For the last 4 years, Oriole Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2025, 100,000 machine hours are budgeted. Activity Cost Pools Inspecting Inventory control (raw materials and finished goods) Utilities Jeremy Nolan, owner-manager of Oriole Stairs Co., recently directed his accountant, Bill Seagren, to…
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $138,000 Number of setups 120 Ordering materials 21,600 Number of orders 1,200 Machining 107,100 Machine hours 11,900 Receiving 16,740 Receiving hours 930 Silven produces two models of cell phones with the following expected activity demands: Model X 4,600 80 400 Units completed Number of setups Number of orders Machine hours Receiving hours Required: 6,800 310 Model X Model Y Model Y 9,200 40 800 5,100 620 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned
The 3 simple aspects of inventoriable product fee are direct materials, direct labor, and: (1.5 Points) b. manufacturing overhead. a. fee of items manufactu object object red. d. work in process. C. fee of items sold.
4.2 BriteLite Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated activity costs and activity bases are as follows:
CS_3_QA4_PIR: Req 4A: Compute the unit product cost for Year 1, Year 2, and Year 3. (Round your intermediate calculations and final answers to 2 decimal places.) Unit Product Cost Year 1 Year 2 Year 3 Req 4B: Prepare an income statement for Year 1, Year 2, and Year 3. (Round your intermediate calculations to 2 decimal places.) O’Brien Company Absorption Costing Income Statement Year 1 Year 2 Year 3
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2 Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your Intermedlate alculations to 2 decimal places. Round your answers to 2 decimal places.)