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The following information is provided for Crank It Up Corp., a manufacturer of stereo systems. Crank It Up Corp. manufactures two different stereo systems: Feel the Beat model and Hurt My Ears model. Activity Total Budgeted Cost Allocation Base Setup $51,100 Number of setups Machine maintenance $39,900 Number of machine hours Total $91,000     Information Feel the Beat Hurt My Ears Total Units Direct labor hours 1,830 2,400 4,230 Number of setups 290 210 500 Number of machine hours 1,840 1,240 3,080   Crank It Up Corp. plans to produce 470 Feel the Beat systems and for Hurt My Ear systems, 700. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the ABC indirect manufacturing cost per unit for each product. 2. Compute the expected indirect manufacturing cost of each product.

The following information is provided for Crank It Up Corp., a manufacturer of stereo systems. Crank It Up Corp. manufactures two different stereo systems: Feel the Beat model and Hurt My Ears model. Activity Total Budgeted Cost Allocation Base Setup $51,100 Number of setups Machine maintenance $39,900 Number of machine hours Total $91,000     Information Feel the Beat Hurt My Ears Total Units Direct labor hours 1,830 2,400 4,230 Number of setups 290 210 500 Number of machine hours 1,840 1,240 3,080   Crank It Up Corp. plans to produce 470 Feel the Beat systems and for Hurt My Ear systems, 700. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the ABC indirect manufacturing cost per unit for each product. 2. Compute the expected indirect manufacturing cost of each product.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following information is provided for Crank It Up Corp., a manufacturer of stereo systems. Crank It Up Corp. manufactures two different stereo systems: Feel the Beat model and Hurt My Ears model.

Activity Total Budgeted Cost Allocation Base
Setup $51,100 Number of setups
Machine maintenance $39,900 Number of machine hours
Total $91,000  

 

Information Feel the Beat Hurt My Ears Total Units
Direct labor hours 1,830 2,400 4,230
Number of setups 290 210 500
Number of machine hours 1,840 1,240 3,080

 

Crank It Up Corp. plans to produce 470 Feel the Beat systems and for Hurt My Ear systems, 700.

(Round your answers to two decimal places when needed and use rounded answers for all future calculations).

1. Compute the ABC indirect manufacturing cost per unit for each product.

2. Compute the expected indirect manufacturing cost of each product.

 

Feel the Beat Setup Machine Machine maintenance Hurt My Ears Setup Machine Machine maintenance Predetermined Overhead Allocation rate X 102.20✔ X 12.95✔ X Predetermined Overhead Allocation rate X X X X X Actual Quantity of the Allocation Base Used 290 ✓ 1,840✓ = Actual Quantity of the Allocation Base Used X = X Total Manufacturing Overhead Costs Number of products Manufacturing overhead cost per product = = Total Manufacturing Overhead Costs Number of products Manufacturing overhead cost per product Allocated Manufacturing Overhead Cost X X X X X Allocated Manufacturing Overhead Cost X X X X X
Transcribed Image Text:Feel the Beat Setup Machine Machine maintenance Hurt My Ears Setup Machine Machine maintenance Predetermined Overhead Allocation rate X 102.20✔ X 12.95✔ X Predetermined Overhead Allocation rate X X X X X Actual Quantity of the Allocation Base Used 290 ✓ 1,840✓ = Actual Quantity of the Allocation Base Used X = X Total Manufacturing Overhead Costs Number of products Manufacturing overhead cost per product = = Total Manufacturing Overhead Costs Number of products Manufacturing overhead cost per product Allocated Manufacturing Overhead Cost X X X X X Allocated Manufacturing Overhead Cost X X X X X
Activity Setup Machine maintenance Total estimated overhead cost 1 51,100✔ / 39,900 / Total estimated quantity of the overhead allocation base 500✔ = 3,080✔ 11 Predetermined Overhead Allocation Rate X X
Transcribed Image Text:Activity Setup Machine maintenance Total estimated overhead cost 1 51,100✔ / 39,900 / Total estimated quantity of the overhead allocation base 500✔ = 3,080✔ 11 Predetermined Overhead Allocation Rate X X
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