BOTE Inc. produces sustainable plastic bottles, The following tables show the detailed production budgets, volumes, costs, ABC cost drivers and the traditional volume-based costing (VBC) overhead allocation based on direct labor hours (overhead rate base). Production Data for the Year   Plastic bottle Selling price 6.00 Budget units of production 20,000 Material cost per unit P 0.50 Direct labor hours per unit 0.05 Direct labor cost per hour P 5.00 quality inspections per unit   0.025 Machine hours per unit 0.3 Moves required per unit 4 Activity Conversion Costs for 20,000 units (Budgeted Overhead Cost)   Indirect Cost Components Costs (Php) Cost Driver Total Depreciation on machinery   75,000   Machine hours   4,010 Quality and finishing 24,000 No of quality inspections 6,000 Material handling 30,000 No. of moves 63,848 Total Indirect Cost 129,000     The budgeted direct labor hours is 5,000 hrs for the P129,000 indirect cost (OH cost). What is the unit cost of the product using activity based costing on the overhead cost?

Consumption Ratios; Activity Rates Dienestar Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours Setup fours Machine hours Inspection hours Setup fours 140 100 Number of moves The following activity data has been collected: Inspecting products Setting up equipment Machining Moving materials Required: 210 235 Rates: 100 20 1. Calculate the commption ratus for the four drivers. Round your answers to two decimal places. Scented Cards Regular Cards 0.42 ✔ 0.17 V 0.74 ✓ pocting produds Setting up equipment Machining Moving material 600 0.50 0.83 ✔ 0.26 ✔ 0.77 ✔ 70 $4,970 4,740 6.320 1,290 Machine hours Number of moves 2. Which of the following statements indicate there is product diversity? Significant variation in the consumption ratios from driver to driver Explain the significance of product diversity for decision-making it the company Chooses to use inachine uus to assign all…

The controller at Wesson Company's manufacturing plant has provided you with the following information for the first quarter's operations: Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold during the quarter Variable marketing and administrative costs Required: a. Determine the variable cost per unit. b. Determine the variable manufacturing cost per unit. c. Determine the full absorption cost per unit. d. Determine the full cost per unit. e. Determine the profit margin per unit. f. Determine the gross margin per unit. g. Determine the contribution margin per unit. Note: Round your answer to 2 decimal places. a. Variable cost per unit b. Variable manufacturing cost per unit c. Full absorption cost per unit d. Full cost per unit e. Profit margin per unit f. Gross margin per unit g. Contribution margin per unit $ 116 per unit $ 2,540,000 $ 525 per unit $57 per unit…

Cost Behavior SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $539,780 + $1.32X, where X equals number of smokers. Last year, SmokeCity produced 19,700 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? For questions 2-4, Enter the final answers rounded to the nearest dollar. 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year?

Happy Valley Pet Products uses a standard costing system that applies overhead to products based on standard direct labour-hours allowed for actual output of the period. During the recent year, the following data were collected: Total budgeted fixed overhead cost for the year Budgeted standard direct labour-hours Actual fixed overhead cost for the year Actual direct labour-hours Standard direct labour-hours allowed for the actual output $63,450 $60,950 14,100 15,300 12,600 Required. 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH 2. Compute the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variance

Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $490,440 Number of setups 610 Ordering costs 313,500 Number of orders 16,500 Machine costs 917,700 Machine hours 43,700 Receiving 382,200 Receiving hours 9,800 Deoro produces two models of dishwashers with the following expected prime costs and activity demands:   Model A Model B Direct materials $610,000 $766,000 Direct labor 451,000 499,000 Units completed 15,500 7,000 Direct labor hours 6,400 2,300 Number of setups 360 250 Number of orders 5,400 11,100 Machine hours 24,900 18,800 Receiving hours 2,700 7,100 The company's normal activity is 8,700 direct labor hours. Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final…

A company has two products A and B. The budgeted fixed manufacturing overhead is $10,000. It is expected to work in full capacity. It plans to use cost-based pricing by using the absorption method. Assume the company can produce and sell 1,000 units Product A and 1,000 units Product B.   Product A  Product B Direct Labor $1 $3 Direct Materials  $3 $2 Variable Manufacturing Overhead $2 $1 Budgeted labor hours used for each unit product 1 4 Budgeted machine hours used for each unit product 3 1 Sale Demand 1000units 1000units Required ROI Rate 10% 5% Required Investment $5000 $30000 Fixed Selling Expenses $2000 $4000 Unit Variable Selling Expenses $1 $2 If allocating fixed manufacturing overhead based on machine hour basis, calculate the sale price of products A and B and budgeted profit of products A and B.

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:     Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 12 sq ft. $ 1.45 per sq. ft. $ 17.40 Direct labor 0.3 hr. $ 11.90 per hr.   3.57 Variable manufacturing overhead (based on direct labor hours) 0.3 hr. $ 2.30 per hr.   0.69 Fixed manufacturing overhead ($461,000 ÷ 922,000 units)             0.50   Parker Plastic had the following actual results for the past year:        Number of units produced and sold   1,160,000 Number of square feet of plastic used   12,000,000 Cost of plastic purchased and used $ 16,800,000 Number of labor hours worked   320,000 Direct labor cost $ 3,744,000 Variable overhead cost $ 1,100,000 Fixed overhead cost $ 377,000   Required:Calculate Parker Plastic’s direct labor rate and efficiency variances. (Do not round intermediate calculations. Indicate the…

Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard Quantity and Cost 6 pounds @ $8 per pound 3 DLH @ $16 per DLH 3 DLH @ $13 per DLH (1) Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for June production. (3) Compute total actual cost for June production. (4) Compute total cost variance for June. Actual Results 43,700 pounds @ $8.20 per pound 21,400 hours @ $16.60 per hour $ 287,500 7,200 units

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:    Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 12 sq ft. $ 1.00 per sq. ft. $ 12.00 Direct labor 0.25 hr. $ 12.80 per hr.   3.20 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 2.00 per hr.   0.50 Fixed manufacturing overhead ($559,200 ÷ 932,000 units)             0.60   Parker Plastic had the following actual results for the past year:        Number of units produced and sold   1,260,000 Number of square feet of plastic used   12,500,000 Cost of plastic purchased and used $ 11,250,000 Number of labor hours worked   330,000 Direct labor cost $ 4,026,000 Variable overhead cost $ 1,480,000 Fixed overhead cost $ 387,000   Required:Calculate Parker Plastic’s variable overhead rate and efficiency variances and its over- or underapplied variable overhead.…