Mayron Industries manufactures dining chairs and tables. The following information is available: Dining Chairs Tables Total Overhead Cost Machine setups 200 600 $48,000 Inspections 250 470 $72,000 2,600 2,400 Labor hours Mayron is considering switching from Traditional Costing based on labor hours to activity- based costing. Assign total overhead costs to Tables using Traditional Costing. $37,000 O $83,000 $62,400 O $57,600 $120,000

Mayron Industries manufactures dining chairs and tables. The following information is available: Dining Chairs Tables Total Overhead Cost Machine setups 200 600 $48,000 Inspections 250 470 $72,000 2,600 2,400 Labor hours Mayron is considering switching from Traditional Costing based on labor hours to activity- based costing. Assign total overhead costs to Tables using Traditional Costing. $37,000 O $83,000 $62,400 O $57,600 $120,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

See similar textbooks

Similar questions

Mayron Industries manufactures dining chairs and tables. The following information is available: Dining Chairs Tables Total Overhead Cost Machine setups 200 600 $48,000 Inspections 250 470 $72,000 Labor hours 2,600 2,400 Mayron is considering switching from Traditional Costing based on labor hours to activity-based costing. 1.Assign total overhead costs to Tables using Traditional Costing 2.Assign total overhead costs to Dining Chairs using Activity Based Costing 3.Assign total overhead costs to Dining Chairs using Traditional Costing.
Hayward Industries manufactures dining chairs and tables. The following information is available: Machine setups Inspections Dining Chairs Tables Total Overhead Cost 200 600 $48,000 250 470 $72,000 2,600 2,400 Labor hours Hayward is considering switching from Traditional Costing based on labor hours to activity-based costing. Assign total overhead costs to Tables using Activity Based Costing. $120,000 $62,400 $83,000 $37,000 $57,600
Deuter Int’l Business manufactures two products, Product L11 and Product L12. The company is considering adopting an activity-based costing system with the following activity pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Estimated Overhead Cost Product L11 Product 12 Total Machine setups required $200,000 600 1,400 2,000 Purchase orders issued 38,382 500 100 600 Machine-hours required 92,650 6,800 10,200 17,000 $331,032 The amount overhead costs assigned to Product L11 would be closest to: Question 15 options: 1) $331,032 2) $129,045 3) $165,516 4) $130,758
Delight Business Ltd (DIB) manufactures two products, Product L11 and Product L12. The company is considering adopting an activity-based costing system with the following activity pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Estimated Overhead Cost Product L11 Product L12 Total Machine setups required $200,000 600 1,400 2,000 Purchase orders issued 38,382 500 100 600 Machine-hours required 92,650 6,800 10,200 17,000 $331,032 The amount overhead costs assigned to Product L12 would be closest to: Question 15 options: 1) $165,516 2) $201,987 3) $200,274 4) $331,032
eBook Carlton's Kitchen's three cost pools and overhead estimates are as follows: Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $162,000 5,000 4,000 Assembly Number of Parts 68,000 24,000 44,000 Machine Maintenance Machine Hours 150,000 13,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign. Product A Product B Total Overhead (ABC) $fill in the blank 1 $fill in the blank 2 Total overhead (traditional) fill in the blank 3 fill in the blank 4 Difference $fill in the blank 5 $fill in the blank 6
Sensor Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: LOADING... (Click the icon to view the costs.) Direct materials $7.00 Direct labor 2.00 Variable overhead 8.00 Fixed overhead 6.50____________________________ Manufacturing product cost $23.50__________________________ _________________________________ LOADING... (Click the icon to view additional information.) Another company has offered to sell Sensor Systems the switch for $19.00 per unit. If Sensor Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Prepare an outsourcing analysis to determine whether Sensor Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing…
Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product Z9 Product N0 Total Labor-related DLHs $ 327,018 6,700 3,300 10,000 Product testing tests 47,247 550 650 1,200 Order size MHs 472,608 4,300 4,600 8,900 $ 846,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: Multiple Choice A. $72.69 per DLH B. $705.73 per DLH C. $85.90 per DLH D. $32.70 per DLH
Fulcrum Industries manufactures dining chairs and tables. The following information is available in December 2020: Dining Chairs Tables Total CostMachine setups 200 600 $48,000Inspections 250 470 $72,000Labor hours 2,600 2,400 Fulcrum is considering switching from one overhead rate based on labor hours to activity-based costing.InstructionsPerform the following analyses for these two components of overhead:a. Compute total machine setups and inspection costs assigned to each product, using a single overhead rate.b. Compute total machine setups and inspection costs assigned to each product, using activity-based costing.c. Comment on your findings.
world Pet Supply Corporation manufactures two models of grooming stations, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Number of Number of Product Setups Components Direct Labor Hours Standard 6 30 650 Deluxe 10 50 150 Overhead costs $50,000 $150,000 Assume a traditional costing system applies the $180,000 of overhead costs based on direct labor hours. a. What is the total amount of overhead costs assigned to the standard model? b. What is the total amount of overhead costs assigned to the deluxe model? Assume an activity-based costing system is used and that the number of setups and the number of…
Murdocn Ledr XAA is considering different costing options. They are now using a traditional costing procedures which applies overhead on the basis of machine hours. They have two products, A and B. XAA is considering a shift to activity-based costing and has created three cost pools. Data ón the cost pools and respective driver are shown below. Pool 1 Pool 2 Pool 3 Driver: Machine Driver: Driver: Product hour setup parts 2,250 A 1,200- 45 2,800 55 750 Pool Cost 160,000 280,000 360,000 $4 The overhead cost allocated to product A by using activity-based costing procedures would be: O a. $240,000. O b. $356,000. O c. $444,000. o d. $560,000. O e. some other amount. O Type here to search
Crmration manufactures bwo models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Number of Number of Setups Components Direct Labor Hours 10 290 Preduct Standard 13 18 235 32 Delue $72,000 $95,200 Overhead costs Amnealraditional costing system applies the overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model? (Do not round interim calculations. Round the final anewes ln the a whole dollar) OA S92.358 OB $74,842 OC $83,600 OD. $52.587 O Time Remaining: 01:46:06 Next % 5 6. 7. 8. ఉం W R Y 314
22) Corp makes two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Setups 12 28 Product Standard Deluxe Number of Components 8 12 Number of Direct Labor Hours 255 245 Overhead costs $52,000 $78,000 Assume a traditional costing system applies the O/H costs based on DLH. What is the total amount of O/H costs assigned to the standard model? 23) Number of setups and number of components are identified as activity-cost drivers for O/H. Assuming an activity-based costing (ABC) system is used, what is the total amount of O/H costs assigned to the standard model?