lata 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 $ 3,000 Machining 19,000 The controller has collected the expected annual prime costs for each briefcase, the machine hours, the setup hours, and the expected production.   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 Required     Calculate the consumption ratios for each activity. Round your answers to one decimal place.   Elegant Fina Machining fill in the blank 2 fill in the blank 3 Setups fill in the blank 4 fill in the blank 5 a.  Calculate the overhead cost per unit for each briefcase by using a plantwide rate based on direct labor costs. Round to the nearest cent. (Note: Do not round intermediate calculations.) Elegant $fill in the blank 6 per briefcase Fina $fill in the blank 7 per briefcase b.  Calculate the overhead cost per unit for each briefcase by using overhead rates based on machine hours and setup hours. Round your answers to the nearest cent. Elegant $fill in the blank 9 per unit Fina $fill in the blank 10 per unit

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 13EB: Stacks manufactures two different levels of hockey sticks: the Standard and the Slap Shot. The total...
icon
Related questions
Question
100%

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 $ 3,000
Machining 19,000

The controller has collected the expected annual prime costs for each briefcase, the machine hours, the setup hours, and the expected production.

  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

Required

 

  Calculate the consumption ratios for each activity. Round your answers to one decimal place.

  Elegant Fina
Machining fill in the blank 2 fill in the blank 3
Setups fill in the blank 4 fill in the blank 5

a.  Calculate the overhead cost per unit for each briefcase by using a plantwide rate based on direct labor costs. Round to the nearest cent. (Note: Do not round intermediate calculations.)

Elegant $fill in the blank 6 per briefcase
Fina $fill in the blank 7 per briefcase

b.  Calculate the overhead cost per unit for each briefcase by using overhead rates based on machine hours and setup hours. Round your answers to the nearest cent.

Elegant $fill in the blank 9 per unit
Fina $fill in the blank 10 per unit
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning