QS 4-5 Chen Company identified the following activities, costs, and activity drivers. Activity Expected Costs Expected Activity 100,000 parts in stock 1,500 batches 700 orders 500 invoices 40,000 square feet 10 models Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Production volume........ Parts required Batches made Purchase orders Invoices Space occupied Models $625.000 900,000 105.000 175.000 300,000 375.000 Fast Model 10,000 units 20.000 parts 250 batches 50 orders 50 invoices 10,000 sqft I model Standard Model 30.000 units 30.000 parts 100 batches 20 orders 10 invoices 7,000 I model Required 1. Assign overhead costs to each product model using activity-based costing (ABC). What is the cost per unit of each model? 2. Assume the plantwide overhead rate is $24.80/DLH. Assign overhead costs to each product model using the single plantwide overhead rate assuming the fast model requires 25,000 direct labor hours and the standard model requires 60,000 direct labor hours. What is the overhead cost per unit for each model?

QS 4-5 Chen Company identified the following activities, costs, and activity drivers. Activity Expected Costs Expected Activity 100,000 parts in stock 1,500 batches 700 orders 500 invoices 40,000 square feet 10 models Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Production volume........ Parts required Batches made Purchase orders Invoices Space occupied Models $625.000 900,000 105.000 175.000 300,000 375.000 Fast Model 10,000 units 20.000 parts 250 batches 50 orders 50 invoices 10,000 sqft I model Standard Model 30.000 units 30.000 parts 100 batches 20 orders 10 invoices 7,000 I model Required 1. Assign overhead costs to each product model using activity-based costing (ABC). What is the cost per unit of each model? 2. Assume the plantwide overhead rate is $24.80/DLH. Assign overhead costs to each product model using the single plantwide overhead rate assuming the fast model requires 25,000 direct labor hours and the standard model requires 60,000 direct labor hours. What is the overhead cost per unit for each model?

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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5 part 1
Assignment 4 – Managerial Accounting Focused: Answer questions 1 through 10 below using Microsoft Excel (input formulas where necessary) and show your work. Shingle Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Shingle produces and sells 25,000 units, its unit costs are as follows: Amount Per Unit Direct Materials $8.00 Direct Labor $5.00 Variable manufacturing overhead $1.00 Fixed manufacturing overhead $6.00 Fixed selling expense $3.50 Fixed administrative expense $2.50 Sales commissions $4.00 Variable administrative expense $1.00 Required: For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? What is the total amount of period costs incurred to sell 25,000 units? If 24,000 units are produced, what is the variable…
Exercise 2 Sumbul Ağa Manufacturing: Information: Amount Sold Unit A 8,000 Regular Selling price 39.95 Total Costs Materials $ 36,000 Labor $ 48,000 Factory Overhead 2$ 24,000 Units identified as inferior or second quality: 100 products Units expected selling price: $9.95 each one Actions to take: 1. Prepare the Journal Entries to charge production costs. 2. Prepare the Journal Entries to charge all departments. 3. Prepare the Journal Entries to charge specific job because is a special order. 4. Calculate the unit cost.
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erlal Accounting- Spring21 Time left 1:34:22 XYZ Co. manufactures three types of remote-control devices:X, Y, and Z. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Driver Cost Material handling $225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $3.880.000 The following information pertains to the three product lines for next year: Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 10 15 25 Number of parts per unit Machine hours per unit 1 3 Labor hours per unit 2 Windows bu What is pool rate for the automated machinery activity? Is buu sc) NG
5 part 2
Details Product J Product G Product P Total Direct $25 $20 $11 $12,38,000 Material Cost Direct Labor 4/3 1 88,000 Hours Machine 4/3 1 76,000 Hours Direct Labor $8 $12 $6 Cost No. of 3 7 20 30 production run No. of 3 20 32 Deliveries No. of 15 35 220 270 Receipts (2*7) No. of 15 10 25 50 production orders Production 30,000 20,000 8,000 and sales units Raw material 11 usage units The total overhead costs is $18,48,000. Set-up 1.623377%, Machines 41.125541%, Receiving 23.538961%, Packing 13.528139% and Engineering 20.183983% of total overhead costs. The company operates a just-in-time inventory policy, and receives each component once per production per run. In the past the company has allocated overheads to products on the basis of direct labor hours. However, the majority of overheads are more closely related to machine hours than direct labor hours. The company has recently redesigned its cost system by recovering overheads using two volume-related bases: machine hours and materials…
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Question 3 Tools & More uses three departments to produce plastic handles for screwdrivers. Forming the handles require mixing the raw materials, molding and drying. After the drying process, the screwdrivers are completed by assembling the handles and the shanks and packing for shipment. The following information relates to the molding process: There was no opening WIP stock 5,000 kilos of material at $43.08 per kilo entered the process Direct materials added $92,000 Direct wages incurred 65,700 Production overhead 75,100 Normal loss is 4% of input A quality control check was done at the end of the molding process and 350 handles were rejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.00 each, and it is company's policy to credit the process account with the scrap value of the normal loss units. Closing WIP was 800 units but these were incomplete, having reached the following percentages of completion for each of the elements of cost listed…
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Exercise 5-11A Allocating facility-level costs and a product elimination decision Blevins Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow. Production costs Direct materials Direct labor Allocated overhead Total units produced and sold Total sales revenue Basco Boards Shimano Boards Required a. Compute the per-unit cost for each product. b. Compute the profit for each product. $25 $32 $15 5,000 $ 500,000 $38 $54 $18 10,000 $1,400,000 Blevins allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $54,000 per quarter, to the two products equally.