Riverbed Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Informationis presented below:Activity Cost PoolsOrdering and ReceivingMachine SetupMachiningAssemblyInspectionBudget $Cost DriverOrdersSetupsMachine hoursDeluxe $PartsInspectionsOverhead cost per unitEst. Overhead$144,000311,4001,023,0001,624,000314,000per unitEst. Use of Cost DriversBudgetper unit600500150,0001.200,000550Deluxe400Compute the overhead cost per unit for each product. Production is 700.000 units of Budget and 200.000 units of Deluxe. (Round permachine hour and per part values to 3 decimal places, eg 52.711. Round overhead cost per unit to 2 decimal places, e.g. 12.25 and costassigned to 0 decimal places, eg. 2,500.)400100,000800,000450

Activity-based costing is used to allocate overhead expenses on the basis of activity. Other than…

Riverbed Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below: Activity Cost Pools Ordering and Receiving Machine Setup Machining Assembly Inspection Budget Deluxe Cost Driver $ Orders Setups Machine hours Parts Inspections Est. Overhead $144,000 311,400 1,023,000 1,624,000 314,000 Overhead cost per unit per unit Est. Use of Cost Drivers Budget Deluxe per unit 600 500 150,000 1,200,000 550 Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round per machine hour and per part values to 3 decimal places, eg. 52.711. Round overhead cost per unit to 2 decimal places, eg. 12.25 and cost assigned to 0 decimal places, eg 2,500) 400 400 100,000 800,000 450

Riverbed Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below: Activity Cost Pools Ordering and Receiving Machine Setup Machining Assembly Inspection Budget Deluxe Cost Driver $ Orders Setups Machine hours Parts Inspections Est. Overhead $144,000 311,400 1,023,000 1,624,000 314,000 Overhead cost per unit per unit Est. Use of Cost Drivers Budget Deluxe per unit 600 500 150,000 1,200,000 550 Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round per machine hour and per part values to 3 decimal places, eg. 52.711. Round overhead cost per unit to 2 decimal places, eg. 12.25 and cost assigned to 0 decimal places, eg 2,500) 400 400 100,000 800,000 450

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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