Problem 6. The Accountant of Camera Film Company has established the followingactivity cost of pools and cost drivers:BudgetedCost driverBudgetedlevelActivityPool rateOHP200,000P100,000100P2,000/set upNo. of set upsWeight of Raw MatWeight of Hazardouschemical usedMachine set upsMaterials hand50,000 lbs. P2/lb.Hazardous wastecontrolP50,000P75,00010,000 Ibs. P5/lb.1,00020,000 hrs. P10/m hr.P75/inspectionQuality controlOther overhead P200,000costsNumber of inspectionsMachine hoursAn order for 2,000 boxes of film development chemicals has the following productionrequirements:Machine set upsRaw materials410,000 pounds2,000 poundsHazardous materialsInspectionsMachine hours20500Direct manufacturing cost actually incurred to produce 2,000 boxes are Directmaterials of P425,000 and direct labor of P400,000.Before the company adopts the ABC approach of costing, the traditional approach ofallocating overhead, which is based on machine hours, is being used.Required:a. Determine the amount of overhead applied to each box of chemical under ABCand traditional costingb. Determine the manufacturing cost per box under ABC and traditional method.

Under activity based costing the overhead is applied to various activities using different overhead…

Answered: Problem 6. The Accountant of Camera…

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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Activity-Based Environmental Cost Assignments Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 129,600 Test for contamination 230,400 Treat toxic waste 720,000 Operate pollution control equipment 576,000 2. Driver data Solvent X Solvent Y Design hours 2,900 1,900 Testing hours 5,100 7,700 Pounds of waste 600 15,400 Machine hours 2,900 61,100 3. Other production data Solvent X Solvent Y Nonenvironmental production costs $2,176,000 $4,128,000 Units produced 320,000 320,000 4. Activity rates that will be used to assign environmental costs to products. Design Produts 27 per design hour Testing 18 per test hour Treating waste 45 per pound of waste Operating equipment 9 per machine hour 1. Determine the unit…
Activity Rates and Product Costs using Activity-Based Costing Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity BudgetedActivity Cost Activity Base Casting $560,000 Machine hours Assembly 75,000 Direct labor hours Inspecting 30,000 Number of inspections Setup 18,750 Number of setups Materials handling 14,000 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 7,500 12,500 20,000 Direct labor hours 2,000 3,000 5,000 Number of inspections 500 250 750 Number of setups 150 100 250 Number of loads 400 300 700 Units produced 5,000 2,500 7,500 a.…
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Q. 2 Índigo manufacturing has five activity cost pools and two products ( a budget tape vacuum and a deluxe tape vacuum). Information is presented below:
Activity-Based Environmental Cost Assignments Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 129,600 Test for contamination 230,400 Treat toxic waste 720,000 Operate pollution control equipment 576,000 2. Driver data Solvent X Solvent Y Design hours 2,900 1,900 Testing hours 5,100 7,700 Pounds of waste 600 15,400 Machine hours 2,900 61,100 3. Other production data Solvent X Solvent Y Nonenvironmental production costs $2,176,000 $4,128,000 Units produced 320,000 320,000 What if the design costs increased to $219,600 and the cost of toxic waste decreased to $360,000? Assume that Solvent Y uses 3,800 out of 7,600 design hours. Also assume that waste is cut by 50 percent and that Solvent Y is responsible for…
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A7 please help.....
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S [The following information applies to the questions displayed below.] Hosmer Industries provides the following information about resources and usage: Resources used Materials Power Setups Purchasing Client assistance Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance Supervision Facility cost Unused Resources Capacity $ 6,600 3,924 2,160 4,680 18,600 8,520 7,080 $ 352,200 47,988 59,076 62, 280 38,520 74,568 128,040 Required: a. Compute the cost driver rate for each resource. Cost Driver Volume 6,400 pounds 272 hours 62 setups 64 purchase orders 40 inquiries 256 labor-hours 3,360 square meters
Please do not give solution in image format thanku

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