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Please provide an example of computing and use manufacturing overhead allocations using hierarchical and activity-based costing...

Please provide an example of computing and use manufacturing overhead allocations using hierarchical and activity-based costing methods.

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Q 1. Explain the difference between activity-based costing for manufacturing overhead and a traditional costing that...
Q 1. Explain the difference between activity-based costing for manufacturing overhead and a traditional costing that uses departmental overhead rates. Q 2. With reference to relevant legislation and case law, discuss the different methods of working out the decline in value of a depreciating asset.
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following activities and costs: Setup (1,000 setup hours) $118,000 Production scheduling (400 batches) 30,000 Production engineering (60 change orders) 90,000 Supervision (2,000 direct labor hours) 64,000 Machine maintenance (12,000 machine hours) 84,000 Total activity costs $386,000 The following additional data were provided for Job 845: Direct materials costs $7,000 Direct labor cost (5 Milling direct labor hours;35 Finishing direct labor hours) $1,000 Setup hours 5...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following activities and costs: Setup (1,000 setup hours) $150,000 Production scheduling (400 batches) 80,000 Production engineering (60 change orders) 60,000 Supervision (2,000 direct labor hours) 66,000 Machine maintenance (12,000 machine hours) 48,000 Total activity costs $404,000 The following additional data were provided for Job 845: Direct materials costs $7,000 Direct labor cost (5 Milling direct labor hours;35 Finishing direct labor hours) $1,000 Setup hours 5...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following activities and costs: Setup (1,000 setup hours) $150,000 Production scheduling (400 batches) 80,000 Production engineering (60 change orders) 60,000 Supervision (2,000 direct labor hours) 66,000 Machine maintenance (12,000 machine hours) 48,000 Total activity costs $404,000 The following additional data were provided for Job 845: Direct materials costs $7,000 Direct labor cost (5 Milling direct labor hours;35 Finishing direct labor hours) $1,000 Setup hours 5...
Please type out answer Please discuss the concepts and benefits of using Activity-Based Costing (ABC)and provide...
Please type out answer Please discuss the concepts and benefits of using Activity-Based Costing (ABC)and provide examples to support your response. Is ABC better than using a single overhead base (such as direct labor hours) to allocate overhead? Can using ABC improve profitability and increase efficiencies?
Mastery Problem: Activity-Based Costing (Advanced) Activity-Based Costing Traditionally, Overhead cost: Sometimes referred to as "factory overhead,"...
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Problem 3-16A Part 2 2. Management is considering using activity-based costing to assign manufacturing overhead cost to products. The activity-based costing system would have the following four activity cost pools: Activity Cost Pool Activity Measure Estimated Overhead Cost Maintaining parts inventory Number of part types $ 225,000 Processing purchase orders Number of purchase orders 182,000 Quality control Number of tests run 45,000 Machine-related Machine-hours 460,000 $ 912,000 Expected Activity Activity Measure LEC 40 LEC 90 Total Number of part types...
Explain the benefits of Activity Based Costing. Please provide a comprehensive response to this question.
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1) Select the type of manufacturing company that would most benefit from activity based costing: Overhead...
1) Select the type of manufacturing company that would most benefit from activity based costing: Overhead costs compared to Total Product Costs Product Diversity (A) Low Little (B) Low Considerable (C) High Little (D) High Considerable (A) (B) (C) (D)
What are the main differences between job, process, and activity-based costing? How is manufacturing overhead calculated...
What are the main differences between job, process, and activity-based costing? How is manufacturing overhead calculated in each of the costing methods? How are variances identified?
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