b. 1. The KLM Company has established the following overhead cost pools and cost drivers. C. Overhead Cost Pool Machine Material Handling Quality control Packaging Facility Total Required: a. Packaging Facility S $ $ S S $ Estimated Overhead Cost 200,000 150,000 70,000 50,000 180,000 650,000 dministration 10,000 tons 20 inspections 100 units 800 DLH Cost Driver Machine Hours Weight of raw material Number of inspections Number of Units Direct Labor Hours .NO:... Estimated Level for Cost Driver 1,000 MH 50,000 tons 2,000 inspections An order for 500 units of product-ordered by Alfa Co.- has the following production requirements. Machine 80 MH Material Handling Quality Control 20,000 units 30,000 DLH 16.01.2024 Pool Rates Compute the total overhead cost that should be assigned to the order of Alfa Co., using the five cost pools an drivers. What is the overhead cost per unit ordered by Alfa Co? Suppose KLM Company were to use a single predetermined overhead rate based on machine hours. Comput rate per hour and the total overhead assigned to the order above.

b. 1. The KLM Company has established the following overhead cost pools and cost drivers. C. Overhead Cost Pool Machine Material Handling Quality control Packaging Facility Total Required: a. Packaging Facility S $ $ S S $ Estimated Overhead Cost 200,000 150,000 70,000 50,000 180,000 650,000 dministration 10,000 tons 20 inspections 100 units 800 DLH Cost Driver Machine Hours Weight of raw material Number of inspections Number of Units Direct Labor Hours .NO:... Estimated Level for Cost Driver 1,000 MH 50,000 tons 2,000 inspections An order for 500 units of product-ordered by Alfa Co.- has the following production requirements. Machine 80 MH Material Handling Quality Control 20,000 units 30,000 DLH 16.01.2024 Pool Rates Compute the total overhead cost that should be assigned to the order of Alfa Co., using the five cost pools an drivers. What is the overhead cost per unit ordered by Alfa Co? Suppose KLM Company were to use a single predetermined overhead rate based on machine hours. Comput rate per hour and the total overhead assigned to the order above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Units produced Production runs per quarter Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection Total overhead Manufacturing overhead in the plant has three main functions: supervision, setup labor, and Incoming material Inspection. Data on manufacturing overhead for a representative quarter follow: $ 288,750 336,000 241,500 $ 866,250 Standard 14,000 a. Using current costing system b. Using proposed ABC system 50 $30 50 Required: a. Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct labor costs as the allocation basis for overhead). b. Compute the unit costs for the two products, Standard and Premium, using the proposed ABC system at Benton. Note: For all requirements, do not round Intermediate calculations. Round your answers to 2 decimal places. S S Answer is complete but not entirely correct. Premium 3,500 25 $64 75 Unit cost Standard 120.00 X S 117.67 X S…
S Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Cost Pool Labor-related (DLHS) Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Product A Product B Product C Product D Cost $ 19,250 $ 1,820 $ 6,320 $ 960 $ 68,600 Total Overhead Cost 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity 1,375 DLHS Expected Activity Product A Product B Product C Product D 300 650 125 300 20 65 180 190 Purchase orders (orders) Product testing (tests) 65 0 80 Template etching (templates) 250 0 26 10 4 General factory (MHs) 3,800 2,000 1,200 2,800 Using the ABC data, determine the total amount of overhead cost assigned to each product. 455 orders 395 tests 40 templates S 9,800 MHs
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BTS Company has two main departments in the plant site namely Producing department (main) and the Servicing department (support). Jin is allocated based on the machine hours while Suga is allocated based on direct labor hours Under the direct method, how much is the total overhead cost of Jimin?
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Equivalent Units of Production and Related Costs The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process-Assembly Department Bal., 8,000 units, 65% completed 31,880 To Finished Goods, 184,000 units ? Direct materials, 188,000 units @ $2.10 394,800 Direct labor 404,400 Factory overhead 157,320 Bal., ? units, 20% completed ? Determine the following: a. The number of units in work in process inventory at the end of the period. units b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0". Work in Process-Assembly Department Equivalent Units of Production for Direct Materials and Conversion Costs WholeUnits Equivalent UnitsDirect Materials Equivalent UnitsConversion Inventory in process, beginning…
Q. 2
A local picnic table manufacturer has budgeted these overhead costs - ERROR: "Handling materials" is $33,350 - (note their order as you will use the same order down below): Purchasing Handling materials Machine setups $70,000 33,333 70,500 25,500 45,000 Inspections Utilities They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown (again, note their order): Cost Driver Activity Orders 700 Material moves Machine setups Number of inspections Square feet 1,334 15,000 5,000 180,000 Recent success has yielded an order for 1,000 tables. Assume direct labor costs per hour of $20. Determine how much the job would cost given the following activities (once more, note their order for the last worksheet): Activity Order (units) Direct materials 1,000 112,700 15,200 5,300 60 Machine hours Direct labor hours Number of purchase orders Number of material moves Number of machine setups Number of inspections Number of square feet occupied 800 100 450 8,000…
Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost Activity Rates $9 per direct labor-hour $3 per machine-hour $45 per setup $150 per order $ 130 per shipment $ 875 per product K425 0 $ Total Expected Activity K425 M67 2,000 M67 200 1,000 2,800 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 0 7 7 14 2 50 40 2 NNNN 2