Activity-Based Costing Quality Cuts Inc. has total estimated factory overhead for the year of $204,000, divided into four activities: cutting, $81,000; sewing, $25,500; setup $60,000; and inspection, $37,500. Quality Cuts manufactures two types of men's pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as follows: Cutting Sewing Setup Inspection Jeans 500 dlh 1,000 dlh 250 setups 100 inspections Khakis 1,000 500 750 400 1,500 dlh 1,500 dlh 1,000 setups 500 inspections Each product is budgeted for 10,000 units of production for the year. a. Determine the activity rates for each activity. Cutting per dlh Sewing per dlh Setup per setup Inspection per inspection b. Determine the factory overhead cost per unit for each product, using activity-based costing. Round your answers to two decimal places. Jeans Khakis

Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division.   Activity Est. Indirect Activity Cost Allocation base Cost allocation rate Materials $60,000   Material moves $5.00/move Assembling $175,000   Direct labor hours $5.00/dir. labor hour Packaging $70,000   # of finished units $2.50/finished unit     The following units were produced in December with the following information:   Part # # Produced Materials Costs # Moves Dir. Labor Hrs. Part 001 1,250  $2,500 100 200 Part 002 3,500  $6,000 500 300 Part 003 3,750  $7,000 2,500 1,250     Total manufacturing costs for Part 002 is   Select one: a. $4,000 b. $18,750 c. $10,000 d. $12,750 e. $15,500

Gleeson Manufacturing Company uses an activity-based costing system. It has the following manufacturing activity areas, related cost drivers and cost allocation rates: Activity Cost Driver Cost Allocation Rate Machine setup Number of setups $50.00 Materials handling Number of parts 0.50 Machining Machine hours 13.00 Assembly Direct labor hours 22.00 Inspection Number of finished units 14.00 During the month, 100 units were produced, with no defects, requiring three setups. Each unit consisted of 17 parts, 3 direct labor hours and 2.5 machine hours. Direct materials cost $50 per finished unit. What is the total manufacturing cost for inspections? Select one: A. $1,100 B. $ 700 C. $ 900 D. $1,400

Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below:       Quarter First Second Third Fourth Direct materials $ 200,000 $ 100,000 $ 50,000 $ 150,000 Direct labor 120,000 60,000 30,000 90,000 Manufacturing overhead 240,000 216,000 204,000 ? Total manufacturing costs (a) $ 560,000 $ 376,000 $ 284,000 $ ? Number of units to be produced (b) 120,000 60,000 30,000 90,000 Estimated unit product cost (a) ÷ (b) $ 4.67 $ 6.27 $ 9.47 $ ?   Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have…

McAlisters Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Cost Category Standard Costper 100 Two-LiterBottles Direct labor   $2.75       Direct materials   1.20       Factory overhead   0.35         Total   $4.30       At the beginning of May, McAlisters Bottle's management planned to produce 800,000 bottles. The actual number of bottles produced for May was 750,000 bottles. The actual costs for May of the current year were as follows: Cost Category Actual Cost for theMonth Ended May 31 Direct labor         $21,100         Direct materials         9,200         Factory overhead         2,700           Total         $33,000         a.  Prepare the May manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for McAlisters Bottle Company, assuming planned production. Enter all amounts as positive numbers. McAlisters Bottle…

Ridgecrest Company manufactures plastic storage crates and has the following information available for the month of April: Work in process, April 1 (100% complete for materials, 40% for conversion) Direct materials Conversion cost Number of units started April costs Direct materials Conversion cost Work in process, April 30 (100% complete for materials, 20% for conversion) 32,100 units $ 48,900 $ 66,900 95,700 units $ 136,500 $ 202,500 48,900 units E3-10 (Algo) FIFO Method [LO 3-4] Required: Using the FIFO method of process costing, complete each of the following steps: 1. Reconcile the number of physical units worked on during the period. 2. Calculate the number of equivalent units. 3. Calculate the cost per equivalent unit. 4. Reconcile the total cost of work in process. S

Activity-Based Costing: Factory Overhead Costs NOORGOGUO The total factory overhead for Bardot Marine Company is budgeted for the year at $1,205,100, divided into four activities: fabrication, $528,000; assembly, $192,000; setup, $262,350; and inspection, $222,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Fabrication 8,250 dih 24,750 33,000 dih Assembly 24,000 dih 8,000 32,000 din 495 setups Each product is budgeted for 6,000 units of production for the year. a. Determine the activity rates for each activity. Fabrication per direct labor hour Assembly per direct labor hour Setup per setup. Inspection per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat Bass boat Speedboat Bass boat per unit per unit Setup 59 setups 436 Inspection 103 inspections 722 825 inspections

Weisman, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats. Estimated Overhead Expected Use of Cost Drivers per Activity Activity Cost Pools Designing $442,000 14,700 designer hours Sizing and cutting 4,090,000 167,000 machine hours Stitching and trimming 1,470,000 78,000 labor hours Wrapping and packing 322,000 30,000 finished units Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools. (Round answers to 2 decimal places, e.g. 12.25.) Activity-based overhead rates Designing per designer hour Sizing and cutting per machine hour $ Stitching and trimming per labor hour Wrapping and packing $ per finished unit

Activity Rates and Product Costs using Activity-Based Costing Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity BudgetedActivity Cost Activity Base Casting $560,000   Machine hours Assembly 75,000   Direct labor hours Inspecting 30,000   Number of inspections Setup 18,750   Number of setups Materials handling 14,000   Number of loads   Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 7,500   12,500   20,000   Direct labor hours 2,000   3,000   5,000   Number of inspections 500   250   750   Number of setups 150   100   250   Number of loads 400   300   700   Units produced 5,000   2,500   7,500     a.…

Mohammed Company employs a standard cost system. Mohammed has established the following standards for one unit of product:     Standard Quantity Standard Price Standard Cost Direct materials 12.0 pounds $ 7.00/pound $ 84.00 Direct labor 2.0 hours $15.00/hour    75.00               During June, Mohammed planned to produce 21,000 units of product. It purchased 330,000 pounds of direct material at a total cost of $2,343,000. The total factory wages for June were $1,440,000. Mohammed manufactured 20,000 units of product during June using 302,000 pounds of direct material and 41,000 direct labor hours. How much is the labor efficiency variance?     $15,000 unfavorable     $75,000 unfavorable     $75,000 favorable     $15,000 favorable     $35,000 favorable