Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders. Shipments General factory Activity Rates. $ 7.00 per direct labor-hour $ 4.00 per machine-hour $ 50.00 per setup $ 100.00 per order $ 150.00 per shipment $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit 378 $ 3.00 $ 3.00 B52 $ 20.00 $ 6.00 2,000 100 Number of units produced per year Total Expected Activity 378 B52 Direct labor-hours. 1,000 20 Machine-hours Machine setups 2,000 50 6 3 Production orders 5 3 8 3 Shipments Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost

Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders. Shipments General factory Activity Rates. $ 7.00 per direct labor-hour $ 4.00 per machine-hour $ 50.00 per setup $ 100.00 per order $ 150.00 per shipment $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit 378 $ 3.00 $ 3.00 B52 $ 20.00 $ 6.00 2,000 100 Number of units produced per year Total Expected Activity 378 B52 Direct labor-hours. 1,000 20 Machine-hours Machine setups 2,000 50 6 3 Production orders 5 3 8 3 Shipments Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost

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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Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory $ 120.00 per shipment $ 10.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct labor-hours Machine-hours Machine setups Production orders Shipments Activity Rates $ 6.00 per direct labor-hour $ 10.00 per machine-hour Direct materials cost per unit Direct labor cost per unit Number of units produced per year $50.00 per setup $ 100.00 per order Unit product cost J78 Total Expected Activity 378 1,400 2,400 8 98 6 B52 30 30 1 1 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) B52 J78 $ 4.50 $ 5.00 2,000 B52 $26.00 $6.00 100
Your Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Estimated Expected Activity Activity Cost Pool Cost Product A Product B Total Activity 1 $17,600 700 300 1,000 Activity 2 $32,600 600 200 800 Activity 3 $52.500 900 500 1,400 What is the activity rate under the activity-based costing system for Activity 1? O $17.60 $58.33 O $37.50 $40.75. O $25.14
Lion Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense Equipment depreciation Distribution of Resource Consumption Across Activity Cost Pools: Product C9 $ 47,000 Product UO $ 6,000 Total Supervisory expense 0.60 Activity Cost Pools O $18.00 per MH O $5.30 per MH O $2.82 per MH O $3.18 per MH Mac 0.60 In the second stage, Machining costs are assigned to products using machine- hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: 6,900 Order Filling 3,100 0.10 MHS (Machining) 10,000 b.20 200…
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Walsh Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs- equipment depreciation and supervisory expense-are allocated to three activity cost pools--Mach g. Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $47,000 Supervisory expense Distribution of Resource Equipment depreciation Supervisory expense $6,000 Consumption Across Activity Cost Pools: Activity: Activity Cost Pools Machining Order Filling Other 0.60 0.30 0.60 0.20 0.10 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: MHS (Machining) Orders (Order Filling) n
Chrzan, Incorporated, manufactures and sells two products: Product EO and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product E0 Product Ne Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Multiple Choice $33.94 per MH $54.20 per MH Direct Expected Labor-Hours Production Per Unit 10.1 410 1,550 9.1 $51.98 per MH $21.40 per MH Activity Measures DLHS orders MHs Total Direct Labor- Hours $ 301,890 61,087 585,366 $948,343 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: 4,141 14, 105 18,246 Product E 4,141 850 5,550 Expected Activity Product NO 14, 105 950 5,250 Total 18,246 1,800 10,800
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments $ 140.00 per shipment General factory $ 7.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct labor-hours Machine-hours Machine setups Production orders Shipments Activity Rates $7.00 per direct labor-hour Direct materials cost per unit Direct labor cost per unit Number of units produced per year $7.00 per machine-hour $30.00 per setup $200.00 per order Unit product cost Total Expected Activity J78 378 1,200 2,200 6 5 7 B52 30 50 1 1 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) B52 378 $5.50 $ 4.75 4,000 B52 $32.00 $9.00 100
Savita
Veruska Corporation has provided the following data from its activity-based costing accounting system: Activity Cost Pools Total Cost Total Activity Designing products P1,394,000 8,200 product design hours Setting up batches 16,000 800 batch set-ups Assembling products 180,000 6,000 assembly hours Data concerning company’s products:…
Shalom Company uses three activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows: product design P40,000; machining P300,000; and material handling P100,000. The cost drivers and estimated use are as follows: Activity Cost Pools Activities Product design Number of product changes Machining Machine hours Material handling Number of set-ups X Estimated Use of Cost Driver Per Activity Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. 10 150,000 100 What is the activity-based overhead rate for material handling? J
A company has provided the following data from its activity-based costing accounting system: Indirect factory wages $552,000 Factory equipment depreciation $332,000 Distribution of Resource Consumption across Activity Cost Pools: 14 Activity Cost Pools Customer Product Orders Processing Other Total Indirect factory wages 55% 35% 10% 100% Factory equipment depreciation 30% 50% 20% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization- sustaining costs, How much indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system? Multiple Choice $552,000 $332.000 $121,600 $0
Maxey & Sons manufactures two types of storage cabinets-Type A and Type B—and applies manufacturing overhead to all units at the rate of $140 per machine hour. Production information follows. Descriptions Anticipated volume (units) Direct-material cost per unit Direct-labor cost per unit Descriptions The controller, who is studying the use of activity-based costing, has determined that the firm's overhead can be identified with three activities: manufacturing setups, machine processing, and product shipping. Data on the number of setups, machine hours, and outgoing shipments, which are the activities' three respective cost drivers, follow. Setups Machine hours Outgoing shipments Туре А 160 56,000 200 Туре А 28,000 $38 43 Required 1 Required 2 Required 3 Туре В Unit manufacturing costs 120 78,750 150 The firm's total overhead of $18,865,000 is subdivided as follows: manufacturing setups, $4,116,000; machine processing, $11,319,000 and product shipping, $3,430,000. Required: 1. Compute…