ps//camdenccinstructure.com/courses/3788/assignmen LUTidwell Industries has the following overhead costs andcost drivers. Direct labor hours are estimated at 100000for the year.Cost DriverActivity Cost PoolOrdering and Receiving OrdersEst. Overhead$ 130000Machine SetupSetups306000MachiningMachine hours1537500AssemblyParts1220000Inspection310000InspectionsIf overhead is applied using traditional costing based ondirect labor hours, the overhead application rate isO $35.04.O $12.20.O $9.89.O $15.38.ip

Calculate total estimated overhead costs:

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter6: Activity-based, Variable, And Absorption Costing

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

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Title Brahtz Company uses an activity-based costing system. It has the following manufacturing activity ar Description Brahtz Company uses an activity-based costing system. It has the following manufacturing activity areas, related cost drivers and cost allocation rates:ActivityCost DriverCost Allocation RateMachine setupNumber of setups$25.00Materials handlingNumber of parts0.25MachiningMachine hours13.00AssemblyDirect labor hours22.00InspectionNumber of finished units7.00During the month, 100 units were produced, with no defects, requiring three setups. Each unit consisted of 17 parts, 3 direct labor hours and 2.5 machine hours. Direct materials cost $50 per finished unit.What is the total manufacturing cost for inspections?$-0-$700$90$7
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 $7,234.50 $3,565.50 69 12 10 20 9 21 492 697 111 1. If the company allocates overhead to products using assembly hours as the single allocation base, how much overhead will be allocated to product X? A. $1,706 B. $784 C. $618 D. $304 2. How much overhead cost would be assigned to Product V using the activity-based costing system? A. $158 B. $91,722 C. $10,385 D. $5,485
Figuring a predetermined overhead rate using direct materials as the allocation base. $130500 estimated manufacturing overhead cost and $87000 as allocation base. Then whats next in the formula
analysis using activity-based costing (ABC). The management accountant accumulates the following information about overhead for the year ended December 31, 2019. Activity Cost Pools Cost Drivers Estimated Expected Use of Overhead Cost Drivers Purchasing Number of $1,200,000 40,000 orders Machine setups Number of 900,000 18,000 setups Machine hours Machining Quality Control 4,800,000 700,000 120,000 28,000 Number of inspections The cost drivers used: Cost Drivers TRI-X Product Purchase orders Machine setupS Machine hours Inspections 17,000 5,000 75,000 11,000 Required: 1. Calculate the activity rates for each of the overhead items using the four cost drivers. 2. Using the rates in (1) determine the unit cost for TRI-X 3. Calculate the gross profit of each model of TRI-X based on ABC costings and recommend whether or not TRI-X should be discontinued.
Draus Products Company uses activity-based costing to compute product costs for external reports. The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool. Estimated costs and activities for the current year are presented below for the three activity cost pools. estimated overhead expected activity activity#1 $60,048 4800 activity#2 $58,656 2400 activity#3 $130,324 4400 Actual costs and activities for the current year were as follows. actual overhead cost actual activity acrivity#1 $59,798 4830 activity#2 $58,476 2370 activity#3 $130,234 4450 The total amount of overhead applied during the year was closest to: 1. $248,508 2. $248,988 3. $250,155 4. $251,334
Draus Products Company uses activity-based costing to compute product costs for external reports. The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool. Estimated costs and activities for the current year are presented below for the three activity cost pools. Estimated Overhead Cost Expected Activity Activity #1 $60,048 4,800 Activity #2 $58,656 2,400 Activity #3 $130,324 4,400 Actual costs and activities for the current year were as follows. Actual Overhead Cost Actual Activity Activity #1 $59,798 4,830 Activity #2 $58,476 2,370 Activity #3 $130,234 4,450 The total amount of the debits to the manufacturing overhead during the year was closest to: $248,508. $248,988. $250,334. $251,110.
Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54.,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or (1.5 hours x (54,000 + 10,200)). Estimated annual manufacturing overhead is $ 1,585,316. Thus, the predetermined overhead rate is $ 16.46 or (S 1,585,316 - 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related…
ntps Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Est. Overhead Cost Driver Activity Cost Pool Ordering and Receiving Orders $ 145000 Machine Setup Setups 319500 Machining Machine hours 1575000 Assembly 1250000 Parts Inspection 325000 Inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is O $0.15 per part. O $290 per order. O $7229 per order. O $1.45 per direct labor hour. hp
Precision instruments uses job order costing and apples manufacuring overhead to individual jobs by using predetermined overhead rates. In dept A, overhead is applied on the basis of machine hours and Dept B on thebasis of direct labor hous. At the beginning of the yea, managementmade th efollowing budget estimats as a step toward determining the overhead application rates. Dept A Dept B Direct Labor $420,000 $300000 Manufacturing overhead $540,000 $412,500 Machine hours 18000 1900 Direct labor hours 28000 25000 Production of 4000 tachometers (job 399) was started in the middle of January and completed 2 weeks later. Thecost records for this job show the following information Dept A Dept B Job 399 4000 units of product Cost of materials $6800 $4500 Direct labor costs 8100 7200 Direct labor hours 540 600 Machine hours 250 100 a. determine the overhead rate that should be used for each department in applying overhead costs to job 399 b. What is the…
Custom's has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are: Cost Pool Material Machining Inspection • Material cost pool . Material requisitions Machine hours Number of inspections • Machining cost pool Custom's data Cost Driver Inspection cost pool Estimated Activity per Driver 14,000 186,400 10,000 Estimated Overhead What is the predetermined overhead rate for each activity? Round to the nearest penny, two decimal places. $52,500 363,500 75,000
Suki Company uses activity-based costing to compute product costs for external reports. The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool. Estimated costs and activities for the current year are presented below for the three activity cost pools: Estimated Overhead Cost Activity 1 Activity 2 Activity 3 Actual activity for the current year was as follows: Actual Activity Activity 1 Activity 2 Activity 3 $34,300 $20,520 $36,112 O a. $30,026.50 O b. $36,112.00 OC. $36,107.00 O d. $35,773.45 1,415 1,805 1,585 0 Expected Activity 1,400 1,800 1,600 The amount of overhead applied for Activity 3 during the year was closest to: Ø
Desjariais Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Coat Pools Setting up batches Assembling products Processing customer orders. Data concerning two products appear below: Number of batches Number of assembly hours. Number of customer orders a. Product S96U b. Product QO6F Overhead cost Activity Rate $ 123.70 per batch $ 7.32 per assembly hour $ 59.76 per customer order Product S960 36 192 23 Required: a. How much overhead cost would be assigned to Product S96U using the company's activity-based costing system? b. How much overhead cost would be assigned to Product Q06F using the company's activity-based costing system? Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Product 006F 45 870 42

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