1. A company has two products: A1 and B2. It uses activity-based costing and has prepared...

1. A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

			Budgeted Activity
Activity Cost Pool	Budgeted Cost		Product A1		Product B2
Activity 1	$	63,000		2,700		6,300
Activity 2	$	78,000		3,740		6,260
Activity 3	$	110,000		8,700		2,300

Annual production and sales level of Product A1 is 9,980 units, and the annual production and sales level of Product B2 is 23,810 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?

2.

A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

			Budgeted Activity
Activity Cost Pool	Budgeted Cost		Product A		Product B
Activity 1	$	106,000		4,900		4,700
Activity 2	$	81,000		6,400		7,400
Activity 3	$	131,000		4,400		7,150

Annual production and sales level of Product A is 36,200 units, and the annual production and sales level of Product B is 71,450 units. What is the approximate overhead cost per unit of Product A under activity-based costing?

3.

Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 627,143 units are expected to be produced taking 0.70 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?

Estimated:	Department 1			Department 2
Manufacturing overhead costs	$	3,121,500		$	1,541,000
Direct labor hours		157,000	DLH		257,000	DLH
Machine hours		257,000	MH		182,000	MH

4.

Bond Company uses a plantwide overhead rate with direct labor hours as the allocation base. Use the following information to solve for the amount of direct labor hours estimated per unit of product G2.


Direct material cost per unit of G2	$	7
Total estimated manufacturing overhead	$	280,000
Total cost per unit of G2	$	32
Total estimated direct labor hours		160,000	DLH
Direct labor cost per unit of G2	$	5.25

Expert Solution

ekkarill92 answered 2 years ago

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