A local picnic table manufacturer has budgeted these overhead costs - ERROR: "Handling materials" is $33,350 - (note their order as you will usethe same order down below):PurchasingHandling materialsMachine setups$70,00033,33370,50025,50045,000InspectionsUtilitiesThey are considering adapting ABC costing and have estimated the cost drivers for each pool as shown (again, note their order):Cost DriverActivityOrders700Material movesMachine setupsNumber of inspectionsSquare feet1,33415,0005,000180,000Recent success has yielded an order for 1,000 tables. Assume direct labor costs per hour of $20. Determine how much the job would cost given thefollowing activities (once more, note their order for the last worksheet):ActivityOrder (units)Direct materials1,000112,70015,2005,30060Machine hoursDirect labor hoursNumber of purchase ordersNumber of material movesNumber of machine setupsNumber of inspectionsNumber of square feet occupied8001004508,000Using the following cost driver terms, complete the two worksheets below to:Number of materialManufacturingNumber of purchaseDirect labormovesoverheadordersNumber of machineNumber of inspectionsDirect materialsSquare feet occupiedsetupsPLEASE NOTE: For activity levels, use commas as needed (i.e. 1,234). Activity rates are rounded to two decimal places and shown with "$" andcommas as needed (i.e. $1,234.56). All other dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. (1) calculate the overhead assigned rate (note their order from above):Overhead CostEstimatedCost DriverActivity LevelsActivity RateItemsOverheadPurchasing$70,000Number of purchası700$100Handling$33,350Number of material1,334$25materialsMachine setups$70,500Number of machine15,000$4.70Inspections$25,500Number of inspecti5,000$5.10Utilities$45,000Square feet occupie180,000$0.25(2) calculate the total order cost (again, note their order from above):Activity Cost DriversActivity LevelsActivity RateAssigned CostsTotal Order Cost

Name: A local picnic table manufacturer has budgeted these overhead costs -
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Description: A local picnic table manufacturer has budgeted these overhead costs - ERROR: "Handling materials" is $33,350 - (note their order as you will usethe same order down below):PurchasingHandling materialsMachine setups$70,00033,33370,50025,50045,000Inspe

The overhead rate is a cost associated with the production of a product or service. Overhead costs…

Business

Accounting

hasing dling materials nine setups ections ies $70,000 33,333 70,500 25,500 45,000 re considering adapting ABC costing and have estimated the cost drivers for each pool as shown (again, note their order) Driver Activity ers erial moves hine setups aber of inspections are feet 700 1,334 15,000 5,000 180.000

hasing dling materials nine setups ections ies $70,000 33,333 70,500 25,500 45,000 re considering adapting ABC costing and have estimated the cost drivers for each pool as shown (again, note their order) Driver Activity ers erial moves hine setups aber of inspections are feet 700 1,334 15,000 5,000 180.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided for Patterson Company for its most recent year of operations. Expected Consumption Activity 7. Inserting dies 8. Purchasing materials 1. Developing test programs 3. Testing products ABC assignments Total overhead cost Required: Driver Number of dies Number of purchase orders Engineering hours Test hours Wafer A Wafer B Quantity 1,900,000 X والے 1,900 9,000 19,000 3. What if the two activities were 1 and 3? Repeat Requirements 1 and 2. Wafer A 0.7 0.2 Ratios 0.25 0.6 $165,000 1. Form reduced system cost pools for activities 7 and 8. Do not round interim calculations. Round your final answers to the nearest dollar. Inserting dies cost pool Purchasing cost pool Wafer B 0.3 2. As the costs of the reduced system cost pools to Wafer A and Wafer B. Do not round interim calculations. Round your final answers to the nearest dollar. 0.8 0.75 0.4 $165,000 $330,000
A-5
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Activity Cost Driver Chosen asAllocation Base Conversion Cost Per Unit ofAllocation Base Materials handling Number of parts $1.00 Machining Machine hours 60.00 Packaging Number of finished units 2.00 Each windsock requires three parts and spends five minutes in the machining department. The total cost of direct materials and direct labor is $3.50 per windsock. Gale produces 20,000 windsocks each year and sells them at 140% of cost. The selling price per windsock is: Question 8 options: $13.50. $18.90. $16.10. $88.20.
+ I/ MN * 00 SI 回2 ters 8-10 Saved Help Save & Exit Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information: Activity AX 14 Cost Driver Amount Number of setups Number of parts Production setups 000 06 $ 000 111,000 Material handling 24 Packaging costs Number of units 333,750 000 $471,750 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)? Multiple Choice $1.86. Mc Graw < Prev 16 of 25 < XƏN 10:21 F (罗 4/15/20 Type here to search PrtSc Delete 1 F10 F11 F12 Ins F8 F5 -D +D 反 F4 & %23 5. 6 3. 4. A G K. H. Alt
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Cumulaaim bws Lid operatea à standard costing system. The standard direct materials to produce 600 units of output is as follows Alateral Grade Imput quantity (titres) Standard price per litre(E) 200 1.10 300 0.55 120 1.20 180 1.50 During December 2021 the actual output of the product was 10,500 units. The actual Materials issued to production were: Material Grade Quantity (litres) E 2,000 F 5,000 2,000 H 3,000 You are required to: a. Calculate the material mix and yield variance for each material and in total. Comment on the figures calculated. b. Explain briefly, with examples, your understanding of the following terms: I. Planning Variance ii. Goal Congruence iii. Sub-Optimality
Station 9 ¾ Corporation manufacturers railroad tracks. They are currently using a traditional system, with machine hours as the cost driver. They are considering converting to an ABC system, and want a comparison of the two. Station 9 ¾ has identified the following activity information: Activity Cost Driver Est. Cost Driver Volume Est. Cost Pool Machining Machine Hours 12,000 $119,000 Assembly Direct Labor Hours 15,800 $107,000 Setup Number of Setups 9 $24,300 Total $250,300 The actual cost driver volume that occurred during the production process is below: Machine Hours 8,600 Direct Labor Hours 9,700 Number of Setups 7 What is the Difference between traditional and ABC system?
Activity Cost Driver Chosen asAllocation Base Conversion Cost Per Unit ofAllocation Base Materials handling Number of parts $1.00 Machining Machine hours 60.00 Packaging Number of finished units 2.00 Each windsock requires three parts and spends five minutes in the machining department. The total cost of direct materials and direct labor is $3.50 per windsock. Gale produces 20,000 windsocks each year and sells them at 140% of cost. The total cost of producing the 20,000 windsocks is: Question 7 options: $160,000. $230,000. $270,000. $1,260,000.
provide answer with correct option
Estimated Estimated Cost Drivers Activity Cost Overhead Street Mountain Pools Costs Tires Tires Machine set ups $ 90,000 150 350 Assembling $500,000 25,000 15,000 Inspection $400,000 180 320 Question Using the activity-based costing approach, determine the applied overhead rates for Darter Company.
PART D