FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- AA Appliances manufactures three machines: washers, dryers, and dish washers. Data on the price and costs for the units are shown below. Washers Dryers Dish Washers Price $840.00 $670.00 $500.00 Direct Materials $420.00 $335.00 $250.00 Direct Labor $200.00 $110.00 $70.00 Variable Manufacturing Overhead $80.00 $70.00 $80.00 It is calculated that manufacturing overhead is allocated to the three products using a rate of $10 per machine hour. It is revealed that there are 140 extra machine hours to allocate to produce another product. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) Calculate the machine hours used per item. Washers Dryers Dish Washers Variable Manufacturing Overhead Answer Answer Answer Overarrow_forward4arrow_forward6. The following data are for the two products produced by Johan Company. Product A Product B P15 per unit 0.3 DLH per unit 0.1 MH per unit 125 batches 10,000 units 12 modifications 500 customers P30 per unit P24 per unit 1.6 DLH per unit 1.2 MH per unit 225 batches Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price 2,000 units 58 modifications 400 customers P120 per unit The company's direct labor rate is P20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing: Engineering support Electricity Setup costs Nonmanufacturing: Customer service P24,500 34,000 52,500 Engineering modifications Machine hours Batches 81,000 Number customers 4. How much gross prorit is generated by each customer of Product A using ABC? How much gross profit is generated by each customer of Product B using ABC? Is the gross profit per customer adequate? 5. Which method of product costing gives…arrow_forward
- A sada manufacturer has two operating departments. Miong and Botting Mixing has 600 employees and Botting has 400 employees. Office costs of $320,000 are allocated to operating departments based number of employees. The office costs allocated to the Botting department are Murple Choice O O O $90,000 $64,000 $200,000 $192.000arrow_forwardRequired information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expensearrow_forwardWatson's Computer Company uses ABC to account for its manufacturing process. Activities Indirect activitybudget Allocation base (cost driver) Materials handling $55,000 Based on number of parts Machine setup $32,000 Based on number of setups Assembling $9820 Based on number of parts Packaging $15,100 Based on number of finished units Watson's Computer Company expects to produce 2330 computers. Watson's Computer Company also expects to use 11,000 parts and have 10 setups.The allocation rate for materials handling will be (Round all answers to two decimal places.) Question 16 options: $5.00 $6.48 $8.40 $23.61arrow_forward
- The Widget Company produces two types of widgets, Standard and Deluxe. Data related to the two products is presented below. Standard Deluxe Annual production in units 25,000 50,000 Direct material costs $75,000 $150,000 Direct manufacturing labor costs $25,000 $50,000 Direct manufacturing labor-hours 1,250 2,500 Machine hours 12,500 25,000 Number of production runs 25 25 Inspection hours 500 250 Both products pass through Departments A and Department B. The departments’ combined manufacturing overhead costs are: Total Machine Costs $187,500 Setup Costs 60,000 Inspection Costs 52,500 Required: Using Activity Based Costing, Compute the…arrow_forwardSaved Jefferson, Inc. produces two different products (Product 5 and Product Z) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $324,000, while the cost of Inspection is $37000. The activity drivers are used as follows: Product 5 Product I Total 5,400 70 Machine hours 3,240 2,160 Number of batches 28 42 What proportion of Inspection activity is used by Product Z? Multiple Cholce 68% 32% 60%arrow_forward
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