A company makes two products—Product A and B. Data regarding the two products follow:   Direct Labor-Hours per Unit Annual Production Product A 0.75 20,000 units Product B 0.50 50,000 units Additional information is as follows:   Product A requires $40 in direct materials per unit, and Product B requires $32. The direct labor wage rate is $18 per hour. The company’s activity-based absorption costing system has the following activity cost pools: Activity Cost Pool (and Activity Measures) Estimated Overhead Cost Expected Activity Product A Product B Total Machine setups (number of setups) $ 100,000 100 300 400 Special processing (machine-hours) $ 200,000 2,000 6,000 8,000 General factory (Direct labor-hours) $ 150,000 15,000 25,000 40,000

Driver Corp. is considering the use of activity-based costing. The following information is provided for the production of two product lines: (Click the icon to view the information.) Driver plans to produce 250 units of Product A and 200 units of Product B. Compute the ABC indirect manufacturing cost per unit for each product. (Round your answers to the nearest cent.) -C Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Round your answers to the nearest cent.) Predetermined OH allocation rate = Data table Activity Setup Machine maintenance Total indirect manufacturing costs Direct labor hours Number of setups Number of machine hours Print $ Cost Allocation Base 106,000 Number of setups 60,000 Number of machine hours $ 166,000 Product A 5,000 30 960 Done Product B 7,000 170 3,040 Total 12,000 200 4,000 - X

Harrison Company makes two products and uses a traditional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced. Rascon. $ 11.00 $ 2.80 0.50 10,000 These products are customized to some degree for specific customers. Required: 1. The company's manufacturing overhead costs for the year are expected to be $606,100. Using the company's traditional costing system, compute the unit product costs for the two products. 2. Management is considering an activity-based absorption costing system in which half of the overhead would continue to be allocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expected to be distributed as follows during the upcoming year: Parcel Engineering design time (in hours) 4,500 Compute…

what is the predetermind rate?

Newtown Inc., manufactures and sells two products: Product U5 and Product X2. 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 U5 Product X2  Total Labour-related DLHs $36,180 2,400 1,200 3,600 Product testing tests 65,760    400      600 1,000 General factory MHs 133,984 4,000 3,900 7,900     $235,924        The total overhead applied to Product X2 under activity-based costing is closest to: a. $157,272 b. $141,555 c. $117,660 d. $67,839

(b) Activity based čóšting . XYZ manufactures four products, namely A, B, C and D using the same plant and process. Following information relates to a production period : Material Direct Machine Labour Volume Cost per unit Labour per unit Time per unit Cost per unit Product 500 1/2 hour 1/4 hour 5,000 1/2 hour 1/4 hour 3 C 600 16 2 hours 1 hour 12 D 7,000 1 hours 12 hours Total production overhead recovered by the cost accounting system is analysed under the following headings : Factory overhead applicable to machine-oriented activity 37,425 ; Set-up costs 4,355 ; Cost of ordering materials 1,920 ; Handling materials 7,580 ; Administration for spare parts 78,600. These overhead costs are absorbed by products on a machine hour rate of 4-60 per hour giving an overhead cost per product of A= 1.20; B=개 1·20; C %3D 4.80; D=D 7·20 However, investigation into the production overhead activities for the period reveals the following totals : Number of material Number of times Material was Number…

1. Compute the product margins for the XT-100 and LT-200 under the company’s traditional costing system. 2. Compute the product margins for XT-100 and LT-200 under the activity-based costing system.

Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools-Machining. Order Filing, and Other-based on resource consumption, Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense $ 30,000 $ 14,800 Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation Supervisory expense Activity: Product W1 Product Me Total Machining Order Filling 0.50 0.50 In the second stage, Machining costs are assigned to products using machine-hours (Ms) and Order Filing costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Product W1 Product Me Total Activity Cost Pools MHS (Machining) 5,530 17,000 22,530 0.40 0.30 Show Transcribed Text 5,530 17,000 22,530 Orders (Order Filling)…

Annika Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three activity cost pools, with total cost and activity as follows:     Total Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $ 18,000 700 300 1,000 Activity 2 $ 24,000 500 100 600 Activity 3 $ 60,000 800 400 1,200   The activity-based costing cost per unit of Product A is ?

Fletes Corporation manufactures two products: Product O95C and Product M31N. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products O95C and M31N.   Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $ 207,000 9,000 MHs Machine setups Number of setups $ 140,000 350 setups Product design Number of products $ 98,000 2 products Order size Direct labor-hours $ 340,000 10,000 DLHs     Activity Measure Product O95C Product M31N Machine-hours 6,000 3,000 Number of setups 190 160 Number of products 1 1 Direct labor-hours 4,000 6,000     Using the ABC system, how much total manufacturing overhead cost would be assigned to Product O95C?