Per unit cost in traditional costing method Under traditional costing method, per unit cost is calculated by adding per unit cost of direct material, labor and overheads . Overhead costs are assigned to products by using a predetermined overhead rate. Unit product cost for both the products under traditional costing method.

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Answer 1

Question

Chapter 4, Problem 2AE

1

To determine

Per unit cost in traditional costing method Under traditional costing method, per unit cost is calculated by adding per unit cost of direct material, labor and overheads. Overhead costs are assigned to products by using a predetermined overhead rate.

Unit product cost for both the products under traditional costing method.

2

To determine

Per unit cost in Activity based costing:

Under activity-based costing, per unit cost is calculated by adding per unit cost of direct material, direct labor and overheads. Here, different activities are identified that give rise to indirect cost and total cost of all the activities (total indirect cost) are allocated to products in the ratio in which products use or consume different activities.

To calculate: Per unit cost under activity-based costing method.

3

To determine

Traditional costing and activity-based costing Both the methods are used in cost accounting to allocate the overheads or indirect cost and to calculate total costs. Traditional costing system uses only one base for such allocation and activity-based costing system uses more than one base based on different activities.

To explain: Which costing system provides more accurate costs.

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Students have asked these similar questions

1.What is a cost whose total amount changes in direct proportion to a change in volume? mixed cost fixed cost irrelevant cost variable cost 2. Which of the following costs is an example of a fixed cost? delivery costs salary of plant manager direct materials sales commissions 3. If production increases by 15%, how will total variable costs likely react? remain the same decrease by 15% increase by 7.5% increase by 15% 4. Which of the following statements is TRUE with respect to fixed costs per unit? They will increase as production decreases They will decrease as production decreases They will remain the same as production levels change They will increase as production increases 5. Canine Company produces and sells dog treats for discriminating pet owners. The unit selling price is $10, unit variable costs are $7, and total fixed costs are $3,300. What are breakeven sales? $11,000 $4,714 $3,300 $7,700 6. Fixed Company produces a single product selling for $30 per unit. Variable costs…

1) what is the breakeven selling price per unit for Product A? 2) For product C, assume the selling price cannot change., what variable cost per unit will result in breakeven at 150 units sold? 3) what is the breakeven unit sales for Product F. Do not give answer in image

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $ 74,000 $ 37,500 Direct materials Direct labor $ 17,000 29,500 Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense Fixed administrative expense Total administrative expense $ 46,500 $ 13,000 20,000 $ 33,000 $ 4,500 26,000 $ 30,500

Answer 2

Question

Chapter 4, Problem 2AE

1

To determine

Per unit cost in traditional costing method Under traditional costing method, per unit cost is calculated by adding per unit cost of direct material, labor and overheads. Overhead costs are assigned to products by using a predetermined overhead rate.

Unit product cost for both the products under traditional costing method.

2

To determine

Per unit cost in Activity based costing:

Under activity-based costing, per unit cost is calculated by adding per unit cost of direct material, direct labor and overheads. Here, different activities are identified that give rise to indirect cost and total cost of all the activities (total indirect cost) are allocated to products in the ratio in which products use or consume different activities.

To calculate: Per unit cost under activity-based costing method.

3

To determine

Traditional costing and activity-based costing Both the methods are used in cost accounting to allocate the overheads or indirect cost and to calculate total costs. Traditional costing system uses only one base for such allocation and activity-based costing system uses more than one base based on different activities.

To explain: Which costing system provides more accurate costs.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 4, Problem 2AE

1

To determine

Per unit cost in traditional costing method Under traditional costing method, per unit cost is calculated by adding per unit cost of direct material, labor and overheads. Overhead costs are assigned to products by using a predetermined overhead rate.

Unit product cost for both the products under traditional costing method.

2

To determine

Per unit cost in Activity based costing:

Under activity-based costing, per unit cost is calculated by adding per unit cost of direct material, direct labor and overheads. Here, different activities are identified that give rise to indirect cost and total cost of all the activities (total indirect cost) are allocated to products in the ratio in which products use or consume different activities.

To calculate: Per unit cost under activity-based costing method.

3

To determine

Traditional costing and activity-based costing Both the methods are used in cost accounting to allocate the overheads or indirect cost and to calculate total costs. Traditional costing system uses only one base for such allocation and activity-based costing system uses more than one base based on different activities.

To explain: Which costing system provides more accurate costs.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 4, Problem 2AE

1

To determine

Per unit cost in traditional costing method Under traditional costing method, per unit cost is calculated by adding per unit cost of direct material, labor and overheads. Overhead costs are assigned to products by using a predetermined overhead rate.

Unit product cost for both the products under traditional costing method.

2

To determine

Per unit cost in Activity based costing:

Under activity-based costing, per unit cost is calculated by adding per unit cost of direct material, direct labor and overheads. Here, different activities are identified that give rise to indirect cost and total cost of all the activities (total indirect cost) are allocated to products in the ratio in which products use or consume different activities.

To calculate: Per unit cost under activity-based costing method.

3

To determine

Traditional costing and activity-based costing Both the methods are used in cost accounting to allocate the overheads or indirect cost and to calculate total costs. Traditional costing system uses only one base for such allocation and activity-based costing system uses more than one base based on different activities.

To explain: Which costing system provides more accurate costs.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 4, Problem 2AE

1

To determine

Per unit cost in traditional costing method Under traditional costing method, per unit cost is calculated by adding per unit cost of direct material, labor and overheads. Overhead costs are assigned to products by using a predetermined overhead rate.

Unit product cost for both the products under traditional costing method.

2

To determine

Per unit cost in Activity based costing:

Under activity-based costing, per unit cost is calculated by adding per unit cost of direct material, direct labor and overheads. Here, different activities are identified that give rise to indirect cost and total cost of all the activities (total indirect cost) are allocated to products in the ratio in which products use or consume different activities.

To calculate: Per unit cost under activity-based costing method.

3

To determine

Traditional costing and activity-based costing Both the methods are used in cost accounting to allocate the overheads or indirect cost and to calculate total costs. Traditional costing system uses only one base for such allocation and activity-based costing system uses more than one base based on different activities.

To explain: Which costing system provides more accurate costs.

Answer 6

Chapter 4, Problem 2AE

1

To determine

Per unit cost in traditional costing method Under traditional costing method, per unit cost is calculated by adding per unit cost of direct material, labor and overheads. Overhead costs are assigned to products by using a predetermined overhead rate.

Unit product cost for both the products under traditional costing method.

Answer 7

Chapter 4, Problem 2AE

1

To determine

Per unit cost in traditional costing method Under traditional costing method, per unit cost is calculated by adding per unit cost of direct material, labor and overheads. Overhead costs are assigned to products by using a predetermined overhead rate.

Unit product cost for both the products under traditional costing method.

Answer 8

2

To determine

Per unit cost in Activity based costing:

Under activity-based costing, per unit cost is calculated by adding per unit cost of direct material, direct labor and overheads. Here, different activities are identified that give rise to indirect cost and total cost of all the activities (total indirect cost) are allocated to products in the ratio in which products use or consume different activities.

To calculate: Per unit cost under activity-based costing method.

Answer 9

2

To determine

Per unit cost in Activity based costing:

Under activity-based costing, per unit cost is calculated by adding per unit cost of direct material, direct labor and overheads. Here, different activities are identified that give rise to indirect cost and total cost of all the activities (total indirect cost) are allocated to products in the ratio in which products use or consume different activities.

To calculate: Per unit cost under activity-based costing method.

Answer 10

3

To determine

Traditional costing and activity-based costing Both the methods are used in cost accounting to allocate the overheads or indirect cost and to calculate total costs. Traditional costing system uses only one base for such allocation and activity-based costing system uses more than one base based on different activities.

To explain: Which costing system provides more accurate costs.

Answer 11

3

To determine

Traditional costing and activity-based costing Both the methods are used in cost accounting to allocate the overheads or indirect cost and to calculate total costs. Traditional costing system uses only one base for such allocation and activity-based costing system uses more than one base based on different activities.

To explain: Which costing system provides more accurate costs.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 4 - What are the three common approaches for assigning...Ch. 4 - Why does activity-based costing appeal to some...Ch. 4 - Why do departmental overheadrates something result...Ch. 4 - What are the four hierarchical levels of activity...Ch. 4 - Why activity-based costing is described as a...Ch. 4 - Why do overhead costs often shift from high-volume...Ch. 4 - What are the three major ways in which...Ch. 4 - What are the major limitations of activity-based...Ch. 4 - Prob. 1AE Ch. 4 - Prob. 2AE

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