age 2021-08-18 at 11.09.16 AM U.jpgAdd to& Edit & Create vYUESTION 7Elite Ltd produces custom machine parts on a job order basis. The company has two direct product cost categories: direct materials and direct labour. In the past, indirect.manufacturing costs were allocated to products using a single indirect cost pool, allocated based on direct labour hours. The indirect cost rate was $115 per direct labour hour.The company recently adopted an Activity-Based Costing (ABC) system. The manufacturing process has been organised into four activities. The following list indicates the activities,cost drivers, and cost allocation rates.ActivityCost DriverCost per unit of cost driverMaterials HandlingNumber of parts$1.20 per partMilling and AssemblyMachine hours$20.00 per hourInspectionNumber of units produced$25.00 per unitShippingNumber of orders shipped.$1500.00 per orderThe company's information system automatically collects the necessary data for their above mentioned activities. The data for two recently completed jobs are shown below.Job order 410Job order 411$59,900$9,700Direct material cost$11,250$750Direct labour costSave All AnswersClose WindowClick Save and Submit to save and submit. Click Save All Answers to save all answers.DELL11:30°C Rain showersヘ回 )8/18ype here to search p Image 2021-08-18 at 11.09.58 AM.jpegRemaining Time: 2 hours, 05 minutes, 43 seconds.Question Completion Status:ShippingNumber of orders shipped$1500.00 per orderThe company's information system automatically collects the necessary data for their above mentioned activities. The data for two recently completed jobs are shownJob order 410Job order 411Direct material cost$9,700$59,900Direct labour cost$750$11,250Number of direct labour hours25375Number of parts5002,000Number of machine hours1501050Number of orders shipped1.200Number of units produced10Required:a. Compute the'manufacturing cost per unit for job orders 410 and 411 under the old, traditional costing system. .b. Under the new ABC system, calculate the manufacturing cost per unit for job orders 410 and 411.*Please indicate which question you are answering for each.Save All AnswersClick Save and Submit to save and submit. Click Save All Answers to save all answers.11:24 AO 30°C Rain showers8/18/202P Type here to search

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Description: age 2021-08-18 at 11.09.16 AM U.jpgAdd to& Edit & Create vYUESTION 7Elite Ltd produces custom machine parts on a job order basis. The company has two direct product cost categories: direct materials and direct labour. In the past, indirect.manufactu

Activity-based costing is the method of costing used to allocate the indirect cost to the product or…

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Elite Ltd produces custom machine parts on a job order basis. The company has two direct product cost categories: direct materials and direct labour. In the past, indirect manufacturing costs were allocated to products using a single indirect cost pool, allocated based on direct labour hours. The indirect cost rate was $115 per direct labour hour The company recently adopted an Activity-Based Costing (ABC) system. The manufacturing process has been organised into four activities. The following list indicates the activities, cost drivers, and cost allocation rates. Save Antweed Activity Cost Driver Cost per unit of cost driver Materials Handling Number of parts $1.20 per part Milling and Assembly Machine hours $20.00 per hour Inspection Number of units produced $25.00 per unit Shipping Number of orders shipped. $1500.00 per order The company's information system automatically collects the necessary data for their above mentioned activities. The data for two recently completed jobs are shown below. Job order 410 Job order 411 $59,900 Direct material cost $9,700 $11,250 $750 Direct labour cost Close Window Save All Answers

Elite Ltd produces custom machine parts on a job order basis. The company has two direct product cost categories: direct materials and direct labour. In the past, indirect manufacturing costs were allocated to products using a single indirect cost pool, allocated based on direct labour hours. The indirect cost rate was $115 per direct labour hour The company recently adopted an Activity-Based Costing (ABC) system. The manufacturing process has been organised into four activities. The following list indicates the activities, cost drivers, and cost allocation rates. Save Antweed Activity Cost Driver Cost per unit of cost driver Materials Handling Number of parts $1.20 per part Milling and Assembly Machine hours $20.00 per hour Inspection Number of units produced $25.00 per unit Shipping Number of orders shipped. $1500.00 per order The company's information system automatically collects the necessary data for their above mentioned activities. The data for two recently completed jobs are shown below. Job order 410 Job order 411 $59,900 Direct material cost $9,700 $11,250 $750 Direct labour cost Close Window Save All Answers

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Geneva, Inc., makes two products, X and Y, that require allocation of indirect manufacturing costs. The following data were compiled by the accountants before making any allocations: The total cost of purchasing and receiving parts used in manufacturing is 60,000. The company uses a job-costing system with a single indirect cost rate. Under this system, allocated costs were 48,000 and 12,000 for X and Y, respectively. If an activity-based system is used, what would be the allocated costs for each product?
Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.
XYZ Company provided the following information regarding Product XY: Direct material costs OMR3 unit of product; Direct labor costs OMR5 per direct labor hour, Predetermined overhead rate OMR10 per direct per labor hour. The cost of a job for 550 units of product XY, which uses a total of 150 direct labor hours, is: Select one: O a. OMR4,050 O b. OMR3,900 O c. OMR9,900 O d. None of the answers given O e. OMR5,900
Cross Roads Manufacturing currently uses a traditional costing system. The company allocates overhead to its two products, Zips and Dees, using a predetermined manufacturing overhead rate based on direct labor hours. Here is data related to the company's two products: Zips $149.00 $57.00 Dees $114.00 $51.00 Direct materials per unit Direct labor per unit Direct labor hours per unit 1.5 2.0 Annual production 29,500 35,000 Information about the company's estimated manufacturing overhead for the year follows: Estimated Activities Activity measures overhead cost $3,218,250 $201,000 $194,950 $3,614,200 Supervision and maintenance Direct labor hours Batch costs Number of batches Number of engineering hours Engineering changes Total estimated manufacturing overhead for the year Total estimated direct labor hours for the company for the year are 114,250 hours. The company is evaluating whether it should use an activity - based costing system in place of its traditional costing system.…
Two products are manufactured by FBGNPU422 Corp. FBGNPU422 uses conventional job-order costing with a plantwide predetermined overhead rate and direct labor hours as the allocation base. FBGNPU422's records reveal the following per-unit costs for direct materials and direct labor: Product A Product B Production volume (units) 5,000 $42 2,000 $37 Direct materials (ID#12705) Direct labor: 2 hours at $10/hour 5 hours at $10/hour $20 $50 FBGNPU422's accountants are thinking about a shift to activity-based costing and they collected the following MOH data: Expected Activity Product A Activity Cost Pool Setups General factory Machine processing Estimated OH Cost Activity cost driver Number of setups Product B $360,000 $2,140,000 $280,000 80 40 10,000 2,000 Direct labor hours 10,000 1,000 Machine hours Q: Assuming that FBGNPU422's actual and expected direct labor hours are the same, what is the unit product cost of Product B under conventional job-order costing? A: $ 10 of 25
Two products are manufactured by FBGNPU422 Corp. FBGNPU422 uses conventional job-order costing with a plantwide predetermined overhead rate and direct labor hours as the allocation base. FBGNPU422's records reveal the following per-unit costs for direct materials and direct labor: Product A 5,000 $57 Product B 2,000 $63 Production volume (units) Direct materials (ID#80160) Direct labor: 2 hours at $10/hour 5 hours at $10/hour $20 $50 FBGNPU422's accountants are thinking about a shift to activity-based costing and they collected the following MOH data: Activity Cost Pool Setups General factory Machine processing Estimated OH Cost $420,000 $2,020,000 $120,000 Activity cost driver Number of setups Direct labor hours Machine hours Expected Activity Product A 80 10,000 2,000 Product B 40 10,000 1,000 Q.) Assuming that FBGNPU422's actual and expected direct labor hours are the same, what is the unit product cost of Product B under conventional job-order costing? A.) $[ 7 of 25 Next >
Feauto Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, 163E and E761, about which it has provided the following data: I63E E76I $22.20 $66.60 $17.50 $ 52.50 Direct labor-hours per unit 0.50 84,000 Annual production (units) 1.50 28,000 The company's estimated total manufacturing overhead for the year is $3,141,600 and the company's estimated total direct labor-hours for the year is 84,000. The company is considering using a form of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Direct materials per unit Direct labor per unit Activities and Activity Measures Assembling products (direct labor-hours) Preparing batches (batches) Product support (product variations) Total Direct labor-hours Batches Product variations…
A company has the following overhead costs and activities: Estimated Expected Activity Product V Product W Product X Overhead Activities and Activity Measures Machine setups (setups) Processing customer orders (orders) Assembling products (assembly-hours) $9,178.00 Cost $7,234.50 $3,565.50 69 12 10 20 9 21 492 697 111 1. If the company allocates overhead to products using assembly hours as the single allocation base, how much overhead will be allocated to product X? A. $1,706 B. $784 C. $618 D. $304 2. How much overhead cost would be assigned to Product V using the activity-based costing system? A. $158 B. $91,722 C. $10,385 D. $5,485
Patricio Corp. uses ABC to compute the product cost for external reports. The company has three activity pools and applies manufacturing overhead costs using predetermined overhead rates for each activity cost pool. Estimated costs and activities for the current year are presented below for the three activity cost pools: Estimated OH Cost Expected Activity Activity 1 $180,144 14,400 Activity 2 $175,968 7,200 Acitivity 3 $390,702 13,200 The actual cost and activities for the current year are presented below: Actual OH Cost Actual Activity Activity 1 $179,394 14,490 Activity 2 $175,428 7,110 Acitivity 3 $390,702 13,350 a. What is the activity rate under the ABC system for activity 3 would be? b. What would be the total overhead applied to Work in Process account during the year? c. What would be the total overhead debited to the manufacturing account during the year?
Hamada company uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect- cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). During 2020, Indirect manufacturing labor cost incurred $1,300,000. The journal entry is: а. Manufacturing Overhead Control debit $1,300,000 and Materials Control credit $1,300,000. b. Work-in-Process Control debit $1,300,000 and Wages payable control credit $1,300,000. С. Wages payable control debit $1,300,000 and Manufacturing Overhead Control credit $1,300,000. d. Wages payable control debit $1,300,000 and Work-in-Process Control credit $1,300,000.
1. Assume Delph uses plantwide predetermined overhead rates based on machine - hours. a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year?Delph Company uses a job - order