Computing and using a single plantwide overhead allocation rate Koehler makes handheld calculators in two models: basic and professional. Koehler estimated $721,000 of manufacturing overhead and 515,000 machine hours for the year. The basic model actually consumed 230,000 machine-hours, and the professional model consumed 285,000 machine hours. Compute the predetermined overhead allocation rate using machine hours (MHr) as the allocation base. How much overhead is allocated to the basic model? To the professional model?

Activity-Based Costing Cardio Care Inc. manufactures stationary bicycles and treadmills. The products are produced in the Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $22 per machine hour (mh) Assembly $14 per direct labor hour (dlh) Setup $40 per setup Inspecting $20 per inspection Production scheduling $16 per production order Purchasing $4 per purchase order The activity-base usage quantities and units produced for each product were as follows:   Stationary Bicycle Treadmill Machine hours 2,210     1,090   Direct labor hours 470     200   Setups 40     10   Inspections 650     370   Production orders 60     40   Purchase orders 150     80   Units produced 1,000     1,000   Use the activity rate and usage information to compute the total…

Ashvinn

Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:   Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 231,000 11,000 MHs Machine setups Number of setups $ 180,000 300 setups Production design Number of products $ 94,000 2 products General factory Direct labor-hours $ 260,000 10,000 DLHs   Activity Measure Product Y Product Z Machining 9,000 2,000 Number of setups 60 240 Number of products 1 1 Direct labor-hours 9,000 1,000   11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and…

Greenwood Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 235,200 12,000 MHs Machine setups Number of setups $ 73,600 160 setups Production design Number of products $ 80,000 2 products General factory Direct labor-hours $ 295,200 12,000 DLHs   Activity Measure Product Y Product Z Machining 7,600 4,400 Number of setups 40 120 Number of products 1 1 Direct labor-hours 7,600 4,400   11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product…

Product-Costing Accuracy, Consumption Ratios Plata Company produces two products: a mostly handcrafted soft leather briefcase sold under the label Maletin Elegant and a leather briefcase produced largely through automation and sold under the label Maletin Fina. The two products use two overhead activities, with the following costs Setting up equipment: $6,000 Machining 22,000 The controller has collected the expected annual prime costs for each briefcase, the machine hours, the setup hours, and the expected production. Line Item Description:        Elegant            Fina Direct Labor                        $9,000             $3,000 Direct materials                   $3,000             $3,000 Units                                    $3,000             $3,000 Machine Hours                    $500                $4,500 Setup Hours                        $100                 $100 1.  Conceptual Connection: Do you think that the direct labor costs and direct materials costs are accurately…

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Activity-Based Costing CardioTrainer Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $22 per machine hour (mh) Assembly $12 per direct labor hour (dlh) Setup $40 per setup Inspecting $18 per inspection Production scheduling $8 per production order Purchasing $5 per purchase order The activity-base usage quantities and units produced for each product were as follows:   Stationary Bicycle Treadmill Machine hours 1,680 1,070 Direct labor hours 243 131 Setups 45 131 Inspections 158 94 Production orders 60 32 Purchase orders 240 98 Units produced 500 350 Use the activity rate and usage information to compute the total activity costs and the activity…

Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?

Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:   Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 227,700 11,000 MHs Machine setups Number of setups $ 153,900 270 setups Production design Number of products $ 91,000 2 products General factory Direct labor-hours $ 257,000 10,000 DLHs   Activity Measure Product Y Product Z Machining 8,700 2,300 Number of setups 60 210 Number of products 1 1 Direct labor-hours 8,700 1,300   Required: 1. What is the company’s plantwide overhead rate? (Round your answer to 2 decimal places.) PLEASE ROUND TO…