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Category Unit Batch Product Facility Total Pooled Cost $ 436,000 Types of Costs Indirect labor wages, supplies, factory utilities, machine maintenance 251,400 Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling Research and development 124,600 319,000 Rent, general utilities, maintenance, facility depreciation, administrative salaries Additional data for each of the product lines follow: Machine hours Cost Driver Number of production orders Time spent by research department Square footage Commercial Home Direct materials cost Direct labor cost $ 25.19 per unit $ 15.19 per unit $ 10.95 per hour $ 8.95 per hour Number of labor hours 6,000 12,000 Number of machine hours 10,000 45,000 Miniature $ 12.19 per unit $ 9.95 per hour 2,000 25,000 Number of production orders 200 2,000 800 Research and development time 10% 20% 70% Number of units 15,000 20,000 45,000 50,000 14,000 30,000 Square footage Required Total 20,000 80,000 3,000 100% 74,000 100,000 a. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines. b. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines. Note: For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your answers for "Total Cost" to the nearest whole dollar amount. Type of Product a. Commercial a. Home a. Miniature Combined total b. Commercial b. Home b. Miniature Combined total Total Cost Cost per Unit

Category Unit Batch Product Facility Total Pooled Cost $ 436,000 Types of Costs Indirect labor wages, supplies, factory utilities, machine maintenance 251,400 Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling Research and development 124,600 319,000 Rent, general utilities, maintenance, facility depreciation, administrative salaries Additional data for each of the product lines follow: Machine hours Cost Driver Number of production orders Time spent by research department Square footage Commercial Home Direct materials cost Direct labor cost $ 25.19 per unit $ 15.19 per unit $ 10.95 per hour $ 8.95 per hour Number of labor hours 6,000 12,000 Number of machine hours 10,000 45,000 Miniature $ 12.19 per unit $ 9.95 per hour 2,000 25,000 Number of production orders 200 2,000 800 Research and development time 10% 20% 70% Number of units 15,000 20,000 45,000 50,000 14,000 30,000 Square footage Required Total 20,000 80,000 3,000 100% 74,000 100,000 a. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines. b. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines. Note: For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your answers for "Total Cost" to the nearest whole dollar amount. Type of Product a. Commercial a. Home a. Miniature Combined total b. Commercial b. Home b. Miniature Combined total Total Cost Cost per Unit

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 1P: The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent...
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Category Unit Batch Product Facility Total Pooled Cost $ 436,000 Types of Costs Indirect labor wages, supplies, factory utilities, machine maintenance 251,400 Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling Research and development 124,600 319,000 Rent, general utilities, maintenance, facility depreciation, administrative salaries Additional data for each of the product lines follow: Machine hours Cost Driver Number of production orders Time spent by research department Square footage Commercial Home Direct materials cost Direct labor cost $ 25.19 per unit $ 15.19 per unit $ 10.95 per hour $ 8.95 per hour Number of labor hours 6,000 12,000 Number of machine hours 10,000 45,000 Miniature $ 12.19 per unit $ 9.95 per hour 2,000 25,000 Number of production orders 200 2,000 800 Research and development time 10% 20% 70% Number of units 15,000 20,000 45,000 50,000 14,000 30,000 Square footage Required Total 20,000 80,000 3,000 100% 74,000 100,000 a. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines. b. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines. Note: For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your answers for "Total Cost" to the nearest whole dollar amount. Type of Product a. Commercial a. Home a. Miniature Combined total b. Commercial b. Home b. Miniature Combined total Total Cost Cost per Unit
Transcribed Image Text:Category Unit Batch Product Facility Total Pooled Cost $ 436,000 Types of Costs Indirect labor wages, supplies, factory utilities, machine maintenance 251,400 Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling Research and development 124,600 319,000 Rent, general utilities, maintenance, facility depreciation, administrative salaries Additional data for each of the product lines follow: Machine hours Cost Driver Number of production orders Time spent by research department Square footage Commercial Home Direct materials cost Direct labor cost $ 25.19 per unit $ 15.19 per unit $ 10.95 per hour $ 8.95 per hour Number of labor hours 6,000 12,000 Number of machine hours 10,000 45,000 Miniature $ 12.19 per unit $ 9.95 per hour 2,000 25,000 Number of production orders 200 2,000 800 Research and development time 10% 20% 70% Number of units 15,000 20,000 45,000 50,000 14,000 30,000 Square footage Required Total 20,000 80,000 3,000 100% 74,000 100,000 a. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines. b. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines. Note: For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your answers for "Total Cost" to the nearest whole dollar amount. Type of Product a. Commercial a. Home a. Miniature Combined total b. Commercial b. Home b. Miniature Combined total Total Cost Cost per Unit
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