Problem A. Poodle Company manufactures two products, Mini A and Max B. Poodle's overhead costs consist of setting up machines P800,000, machining P1,800,000, and inspecting 100,000. Information on the two products Direct labor hours Machine setups Machine hours Inspections Mini A 15,000 600 24,000 800 Maxi B 25,000 400 26,000 700 Determine the following: 1. Overhead applied to Mini A using traditional costing based on direct labor hours is 2. Overhead applied to Maxi B using traditional costing based on direct labor hours is 3. Overhead applied to Mini A using activity-based costing is 4. Overhead applied to Maxi B using activity-based costing is
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- Current Attempt in Progress Vaughn Company manufactures two products, Board 12 and case 165, Vaughn's overhead costs consist of setting up machines, $2720000; machining, $5700000; and inspecting. $1500000. Information on the two products and their estimated use of cost drivers is as follows: Direct labor hours Machine setups Machine hours Inspections O $6200000. O $3968000. Board 12 Case 165 25000 400 Ⓒ$4480000. O $4752000. 15000 600 24000 800 26000 Overhead assigned to Case 165 using activity-based costing is 700Help Save & Exit Gesualdo, Incorporated, manufactures and sells two products: Product Z6 and Product F4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product Z6 Product F4 Total direct labor-hours Direct Materials Cost per Unit $ 101.00 $ 217.20 Activity Cost Pools. Labor-related 300 600 Machine setups Order size Direct Labor- Total Direct Expected Hours Per Labor- Production Unit Hours 8.0 11.0 The direct labor rate is $24.70 per DLH. The direct materials cost per unit for each product is given below: Product Z6 Product F4 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Product F4 6,600 600 3,500 Activity Measures DLHs setups MHS Saved Estimated Overhead Cost $ 98,640 18,711 388,360 $ 505,711 2,400 6,600 9,000 als Handling Costs SubmitExercise 7-4 (Algo) Second-Stage Allocation [LO7-4] Klumper 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 Supporting direct labor Machine processing Machine setups Number of units produced per year Direct labor-hours Activity Rate $ 11 per direct labor-hour $5 per machine-hour $ 45 Production orders Shipments $ 120 per shipment Product sustaining $ 900 per product Activity data have been supplied for the following two products: Machine-hours Machine setups Production orders Shipments Product sustaining per setup $ 160 per order Total Expected Activity K425 M67 2,000 200 1,025 2,600 7 7 14 3 50 40 3 3 3 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
- A company has the following overhead costs and activities: Estimated Expected Activity Product V Product W Product X Overhead Activities and Activity Measures Machine setups (setups) Processing customer orders (orders) Assembling products (assembly-hours) $9,178.00 Cost S7,234.50 $3,565.50 69 12 10 20 21 492 697 111 4. A company sells two products, one with sales of $10,000 and variable expenses of $2,500, another with sales of $46,000 and variable expenses of $15,420. Fixed expenses are $33,100. Breakeven point for the whole company is close to: А. 833,100 В. $22,900 C. $51,020 D. $48,676 A company that reduces the proportion of variable costs in its cost structure will: A. enjoys higher stability in profits. B. increase its profits more when the economy is good. C. have a loss more easily when the economy is bad. D. be indifferent. 5. 6. is normally recorded on any financial statement but irrelevant in decision making which is not. A. Sunk cost B. Incremental cost C. Differential…Current Attempt in Progress Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining, $4200000, and assembling, $2100000. Information on the two products is: Regular Supreme Direct labor hours Machine hours Number of parts 10000 15000 10000 30000 90000 160000 Overhead applied to Supreme using activity-based costing is O $2520000. O $3780000. O $4494000. O $1806000. Submit Answer Attempts: 0 of 1 used Save for LaterQ-4: Al Hamd associate manufactures two types of product X & Y and applies manufacturing overhead to all units on the basis of machine hour. Production information follows: Product X Anticipated volume (Units) Direct materials cost Direct labor cost 16,000 Rs70 Product Y 30,000 Rs120 Rs40 Rs40 The controller, who is studying the use of ABC, has determined that the firm's overhead can be identified with three activities: Activity Manufacturing setup Machine processing Product shipping Cost driver Number of setups Machine hours Outgoing shipments The activities and their respective cost drivers are as follows: Product X 100 Product Y 60 Total 160 Setups Machine hours 32,000 200 45,000 150 77,000 350 Outgoing shipments The firm total overhead of Rs.6,160,000 is subdivided as follows: Manufacturing setup Machine processing Product shipping Rs.1,344,000 Rs.3,696,000 Rs.1,120,000 Rs.6,160,000 Total Required: A. Compute the total cost of product X and Y by using company's current overhead…
- Test yourself ABC Company is producing three products, A, B and C in Direct labor hours their unit. A В C 10,000 15,000 25,000 Number of orders 15 25 10 placed During the year 2019,the total overhead expenses Machine set up hours 150 300 50 are; Requirement 1. Calculated pre-determined overhead rate if overhead is applied based on the direct labor hours .Compute overhead rates using activity based costing. Determine the difference in the amount of overhead allocated to each Procurement cost RO200,000 Machine set up cost RO100,000 product between the two methods.A company manufacturing two products furnishes the following data Annual output Product Output units Machine Hours Purchase Orders Machine set-ups A 5000 20000 160 20 B 60000 120000 384 44 Total 65000 140000 544 64 The annual overheads are as under. Rs Volume related activity costs 4,50,000 Set up related costs 9,20,000 Purchase related costs 5,18,000 Total 1,888,000 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.Current Attempt in Progress Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmerman's overhead costs consist of setting up machines, $2760000; mnachining, $5350000; and inspecting, $2070000. Information on the two products is: Board 12 Case 165 Direct labor hours 15000 25000 Machine setups 600 400 Machine hours 24000 26000 800 Inspections 700 Overhead applied to Board 12 using traditional costing using direct labor hours is O $4852000. O $5224000. O $3817500. O $6108000. 10 ) 10 е
- View Policies Current Attempt in Progress Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining, $1400000; and assembling, $700000. Information on the two products is: Regular Supreme Direct labor hours 10000 15000 Machine hours 10000 30000 Number of parts 90000 160000 Overhead applied to Regular using activity-based costing is O $1260000. O $1498000. O $602000. O $840000. Save for Later Attempts: 0 of 1 used Submit AnswerQuestion No.6 Hunter Company manufactures two products (XX and YY). The overhead costs have been divided into four cost pools that use the following activity drivers. Product Number of Orders Number of Set-ups Number of Labor Transactions Labor Hours XX YY Cost per pool 60 20 Rs.16,000 20 80 Rs.13,000 50 70 Rs.2,400 2,000 500 Rs.20,000 Required: Compute the allocation rates for each of the activity drivers listed. Allocate the overhead costs to product XX and product YY using activity-based costing. Compute the overhead rate using machine hours under the functional-based costing system. Allocate the overhead cost to Product XX and YY using the functional-based costing system overhead rate calculated in part C.Question ABC Company has established standard costs for the furniture department, in which one (1) size of the cabinet is made. The standard costs of producing one (1) of these cabinets are shown below: Direct material (Lumber)50 board feet at P4.00 per foot P200.00Labor standard8 hours at P10.00 per hour 80.00Variable overhead8 hours at P5.00 per hour 40.00Fixed overhead8 hours at P3.00 per hour 24.00Total P344.00 During January 201A, 500 cabinets were produced. The actual cost of operations during the month are shown below: Direct materials purchased (30,000 board feet at P4.10 per board foot)P123,000Direct materials used (24,000 board feet)Direct labor (4,200 hours at P9.50 per hour) 39,900Total variable overhead cost 22,000Total fixed overhead cost 11,000 The budgeted overhead for the furniture department based on a normal monthly activity of 4,500 hours is P36,000, of which P22,500 is variable and P13,500 is fixed overhead. Requirements 1. Material purchase price variance…