ProcessAssemblyFinishingSupportActivityMachiningSetupsBudgeted Cost$311,800Activity Cost DriverActivityUsageMachine hours (MH)7,60024,000$335,800Setups240InspectingPurchasing$ 224,000Inspections800$ 130,000Purchase orders540Additional production information concerning its two models follows.Units and ActivitiesUnits producedMachine hoursSetupsInspectionsPurchase ordersPer UnitSelling price per unitDirect materials cost per unitDirect labor cost per unitModel XModel Z2,0004,0002,2005,40080160540260360180Model X$410Model Z$ 3901601101451601. Compute the activity rate for each activity using activity-based costing.2. Using activity-based costing, compute the overhead cost per unit for each model.3. Compute the total product cost per unit for each model.4. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).

Gross profit is the amount of money earned by the entity after deducting the cost of goods sold from…

Process Assembly Finishing Support Activity Activity Machining Setups Budgeted Cost Activity Cost Driver Usage $311,800 Machine hours (MH) 7,600 24,000 Setups 240 Inspecting $335,800 $224,000 Inspections 800 Purchasing $ 130,000 Purchase orders 540 Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Model X Model Z 2,000 4,000 2,200 5,400 Setups Inspections Purchase orders Selling price per unit 80 160 540 260 360 180 Per Unit Model X $ 410 Model Z $ 390 Direct materials cost per unit 160 110 Direct labor cost per unit 145 160 1. Compute the activity rate for each activity using activity-based costing. 2. Using activity-based costing, compute the overhead cost per unit for each model. 3. Compute the total product cost per unit for each model. 4. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).

Process Assembly Finishing Support Activity Activity Machining Setups Budgeted Cost Activity Cost Driver Usage $311,800 Machine hours (MH) 7,600 24,000 Setups 240 Inspecting $335,800 $224,000 Inspections 800 Purchasing $ 130,000 Purchase orders 540 Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Model X Model Z 2,000 4,000 2,200 5,400 Setups Inspections Purchase orders Selling price per unit 80 160 540 260 360 180 Per Unit Model X $ 410 Model Z $ 390 Direct materials cost per unit 160 110 Direct labor cost per unit 145 160 1. Compute the activity rate for each activity using activity-based costing. 2. Using activity-based costing, compute the overhead cost per unit for each model. 3. Compute the total product cost per unit for each model. 4. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).

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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