Activity Expected Cost Setting up equipment Ordering materials $132,000 27,600 141,050 Machining Receiving 29,250 Silven produces two models of cell phones with the following expected activity demands: Model X Model Y 11,400 5,700 80 400 6,200 375 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model X Model Y Model X Model Y Model X Model Y Activity Driver Number of setups Number of orders Machine hours Receiving hours Percentage Error 40 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned $ $ % Activity Capacity 800 4.650 750 2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. Round Interim calculations to two decimal places and round your final answers to the nearest dollar. Total Overhead Assigned $ $ 3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places. 120 1,200 10,850 1,125

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

Please do not give solution in image format thanku 

Activity
Expected Cost
Setting up equipment
Ordering materials
$132,000
27,600
141,050
Machining
Receiving
29,250
Silven produces two models of cell phones with the following expected activity demands:
Model X
Model Y
11,400
5,700
80
400
6,200
375
Units completed
Number of setups
Number of orders
Machine hours
Receiving hours
Required:
Model X
Model Y
Model X
Model Y
Model X
Model Y
Activity Driver
Number of setups
Number of orders
Machine hours
Receiving hours
Percentage Error
40
1. Determine the total overhead assigned to each product using the four activity drivers.
Total Overhead Assigned
$
$
%
Activity Capacity
800
4.650
750
2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs.
Round Interim calculations to two decimal places and round your final answers to the nearest dollar.
Total Overhead Assigned
$
$
3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places.
120
1,200
10,850
1,125
Transcribed Image Text:Activity Expected Cost Setting up equipment Ordering materials $132,000 27,600 141,050 Machining Receiving 29,250 Silven produces two models of cell phones with the following expected activity demands: Model X Model Y 11,400 5,700 80 400 6,200 375 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model X Model Y Model X Model Y Model X Model Y Activity Driver Number of setups Number of orders Machine hours Receiving hours Percentage Error 40 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned $ $ % Activity Capacity 800 4.650 750 2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. Round Interim calculations to two decimal places and round your final answers to the nearest dollar. Total Overhead Assigned $ $ 3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places. 120 1,200 10,850 1,125
Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education