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- Problem 2 Milky Corporation has provided the following data from its activity-based costing accounting system: Activity Cost Pools Designing products Setting up batches Assembling products Total Cost P1,372,448 P33,300 P126,160 Total Activity 7,798 product design hours 740 batch set-ups 6,640 assembly hours The activity rate for the "designing products" activity cost pool is answer must be in nearest peso A The activity rate for the "setting up batches" activity cost pool is answer should be in nearest peso A The activity rate for the "assembling products" activity cost pool is answer must be in nearest peso AQuestion 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.Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Budgeted Budgeted Cost Activity Cost Activity Driver Process Activity Usage Machine hours (MH) Setups $ Assembly Machining 7,800 311,400 20,000 Setups 120 331,400 Finishing Inspecting Inspections 840 226,000 $ 134,000 Support Purchasing Purchase orders 510 Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Setups Inspections Model X Model Z 1,600 2,200 40 3,200 5,600 80 500 340 340 170 Purchase orders Per Unit Model X Model Z Selling price per unit Direct materials cost $ 410 $ 390 150 115 per unit Direct labor cost per unit 125 150 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,…
- Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $144,000 6,000 2,000 Assembly Number of Parts 71,000 25,000 46,000 Machine Maintenance Machine Hours 200,000 13,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign.Activity Rates and Product Costs Using Activity-Based Costing BriteLite Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated activity costs and activity bases are as follows: Activity Costs Activity Activity Base (Budgeted) Casting $42,000 Machine hours Assembly 13,500 Direct labor hours Inspecting 5,800 Number of inspections Setup 16,800 Number of setups Materials handling 3,600 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 for each product and in total are provided in the following table: Activity Base Entry Dining Total Machine hours 800 600 1400 Direct labor hours 500 400 900 Number of inspections 140 150 290 Number of setups 80 60 140 Number of loads 50 40 90 Units produced 1,200 500 1,700 a. Determine the activity rate for each activity. Activity…Saved Help Sav CH 07 i Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system cont following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Activity Rates $6 per direct labor-hour $ 4 per machine-hour $ 50 per setup $ 90 per order $ 14 per shipment $ 840 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year Direct labor-hours 200 2,000 80 500 Machine-hours Machine setups Production orders 100 1,500 1 4 4 Shipments Product sustaining 1 10 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? DELL F3 prt sc home end F4 F5 F6
- Desjarlais Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Activity Rate Setting up batches $ 83.25 per batch Assembling products $ 13.88 per assembly hour Processing customer orders $ 61.41 per customer order Data concerning two products appear below: Product S96U Product Q06F Number of batches 33 45 Number of assembly hours 104 844 Number of customer orders 16 33 Required: a. How much overhead cost would be assigned to Product S96U using the company's activity-based costing system? (Round your intermediate calculations and final answer to 2 decimal places.) b. How much overhead cost would be assigned to Product Q06F using the company's activity-based costing system? (Round your intermediate calculations and final answer to 2 decimal places.)Computing and using activity-based costing overhead allocation rates Koehler (see Exercise E19-15 and Exercise E19-16) makes handheld calculators in two models—basic and professional—and wants to further refine its costing system by allocating overhead using activity-based costing. The estimated $721,000 of manufacturing overhead has been divided into three primary activities: Materials Handling, Machine Setup, and Insertion of Parts. The following data have been compiled: Requirement 1 Koehler expects to produce 200,000 basic models and 200,000 professional models. Compute the predetermined overhead allocation rates using activity-based costing. How much overhead is allocated to the basic model? To the professional model? Requirement 2 Compare your answers for Exercise E19-15, Exercise E19-16, and Exercise E19-17. What conclusions can you draw? Note: Short Exercise S19-15 and ES19-16 must be completed before attempting Short Exercise 519-17.Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Required: Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours LAPELLEu Overhead Cost $ 311,500 $ 8,840 $ 71,280 $ 63,700 $ 148,000 Expected Activity 44,500 DLHS 221 orders 99 part types 1,820 boards 14,800 MHs 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Product A Product B Product C Product D 6,800 51 27,300 29 4,600 49 5,800 92 34 17 33 15 500 2,100 770 6,300 550 0 2,400 4,000 Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the…
- Required information Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Total Cost of Pool $ 171,100 45, 100 66, 123 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A 20,000 2,200 40 Product A Product B Product C Cost Driver Number of machine hours Number of design hours Number of batches Total Overhead Assigned Product B Product C 9,000 2,000 255 Estimated Cost Driver 59,000 5,500 465 30,000 1,300 170 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. Note: Do not round your intermediate calculations. Round your final answers to nearest whole number.Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities-production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities: Activity Activity Cost Activity Base Production setup $ 97,500 Number of setups Procurement 137,500 Number of purchase orders (PO) Quality control 187,500 Number of inspections Materials management 100,000 Number of components Total $522,500 The activity-base usage quantities for each product are as follows: Purchase Setups Inspections Components Unit Volume Orders Custom 500 1,150 2,300 300 1,000 Standard 250 100 200 200 1,000 Total 750 1,250 2,500 500 2,000 a. Determine an activity rate for each activity. Activity Rates Production Setup Procurement Quality Control Materials Management Activity cost - Activity base Activity rate $4 /setup /PO $ /inspection…Kapoor Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Setting up batches Activity Rate $86.50 per batch Assembling products $4.63 per assembly hour Processing customer orders $52.16 per customer order + Data concerning two products appear below: + + P Number of batches 34 Number of assembly hours 105 Number of customer orders 17+ P ܒܝ Product J00A Product S06U 43P 812+ 32- Overhead Cost:< P Required: a. How much overhead cost would be assigned to Product J00A using the company's activity- based costing system? + b. How much overhead cost would be assigned to Product S06U using the company's activity-based costing system? There are some expenses incurred at the time of manufacturing of products and services that are not directly attributable to the finished products. These expenses are known as manufacturing overheads or indirect expenses.