(a) Calculate the following planned overhead absorption rates: (i) A machine hour rate for the Cutting Department. (ïi) A rate expressed as a direct labour cost for the Assembling Department.
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- Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared: The cost per equivalent unit for the period was as follows: The cost of beginning work in process was direct materials, 40,000; conversion costs, 30,000. Required: 1. Determine the cost of ending work in process and the cost of goods transferred out. 2. Prepare a physical flow schedule.
- Use the following information for Brief Exercises 4-34 and 4-35: Sanjay Company manufactures a product in a factory that has two producing departments, Assembly and Painting, and two support departments, S1 and S2. The activity driver for S1 is square footage, and the activity driver for S2 is number of machine hours. The following data pertain to Sanjay: Brief Exercises 4-34 (Appendix 4B) Assigning Support Department Costs by Using the Direct Method Refer to the information for Sanjay Company above. Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratiosone for Assembly and the other for Painting.) 2. Allocate the support department costs to the producing departments by using the direct method.Lansing. Inc., provided the following data for its two producing departments: Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 30,000 units of Form A produced and sold and 50,000 of Form B. Required: 1. Calculate the overhead rates for each department. 2. Using departmental rates, assign overhead to live two products and calculate the overhead cost per unit. How does this compare with the plantwide rate unit cost, using direct labor hours? 3. What if the machine hours in Molding were 1,200 for Form A and 3,800 for Form B and the direct labor hours used in Polishing were 5,000 and 15,000, respectively? Calculate the overhead cost per unit for each product using departmental rates, and compare with the plantwide rate unit costs calculated in Requirement 2. What can you conclude from this outcome?Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: The activity-base usage quantities and units produced for each product were as follows: Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product.
- Buggy Company manufactures and sells two products: Product A1 and Product A2. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product A1 Product A2 Total Labour-related DLHs $250,000 5,000 4,000 9,000 Machine setups setups 138,040 800 600 1,400 General factory MHs 280,553 3,500 3,200 6,700 Total 668,593 What is the activity rate for the Machine Setups activity cost pool?SIMPly Power Inc., manufactures and sells two products: Product V9 and Product B1. Data concerning the expected production of each product and the expected total direct labour-hours (DLHS) required to produce that output appear below: Product V9 Product B1 Total direct labour-hours Product V9 Product B1 Activity Cost Pools Labour-related The direct labour rate is $27.40 per DLH. The direct materials cost per unit for each product is given below: Machine setups General factory Expected Production 300 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: O $86.5 per unit 800 O $129.12 per unit O $217.95 per unit O $272.08 per unit Activity Measures DLHS Direct Labour-Hours Per Unit 5.0 3.0 setups Direct Materials Cost per Unit $176.90 $262.80 MHS Estimated Overhead Cost $94,848 36,990 62,408 $194,246 Total Direct Labour- Hours 1,500 2,400 3.900 Expected Activity Product V9 Product B1 Total…Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Cost Product Z1 Product Z8 Total DLHS $112,190 40,440 609,770 600 2,000 Machine setups Оrder size 2,600 1,200 6, 200 setups 500 700 MHs 3,000 3,200 $762,400 The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to: Multiple Cholce $203.26 per setup $190.55 per setup $122.97 per setup 92 F AQI 61 nere to search DELL
- Vattes, Incorporated, manufactures and sells two products: Product 15 and Product U1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product 15 Product U1 Direct Labor- Expected Hours Per Production Unit 700 7.0 200 4.0 Activity Cost Pools Labor-related Machine setups Order size Product 15 Product U1 Total direct labor-hours The direct labor rate is $22.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 261.60 $ 121.60 Activity Measures DLHS setups MHS The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity, Expected Activity Total Direct Labor- Estimated Overhead Cost $ 268,698 Hours 4,900 800 5,700 37,324 633,895 $939,917 Product 15 Product U1 4,900 300 4,900 800 400 4,800 Total 5,700 700 9,700Stampout Plastics produces different kinds of products, all in one manufacturing facility. They have identified four activities for their costing system: Materials management—allocated by number of purchase orders Chemical processing—allocated on metric tons Molding—allocated on direct labor hours Packaging—allocated by number of units produced The activity rates are as follows: Materials management $12.00 Per purchase order Chemical processing $7.50 Per metric ton Molding $24.00 Per direct labor hour Packaging $0.10 Per unit Engineering design shows that the order will require direct materials that cost $540; direct labor cost will be $90. The order will also require four purchase orders to be placed, use two metric tons of chemical base, and need eight direct labor hours. The size of the order is to…Stampout Plastics produces different kinds of products, all in one manufacturing facility. They have identified four activities for their costing system: Materials management—allocated by number of purchase ordersChemical processing—allocated on metric tonsMolding—allocated on direct labor hoursPackaging—allocated by number of units produced The activity rates are as follows: Materials management $12.00 Per purchase order Chemical processing $7.50 Per metric ton Molding $24.00 Per direct labor hour Packaging $0.10 Per unit Engineering design shows that the order will require direct materials that cost $540; direct labor cost will be $90. The order will also require four purchase orders to be placed, use two metric tons of chemical base, and need eight direct labor hours. The size of the order is to produce 3,000 units of product. Calculate the total production of the order.