Question

In: Accounting

XYZ Corporation produces two products: Construction Equipment and Laboratory Equipment. The total units manufactured for Construction...

XYZ Corporation produces two products: Construction Equipment and Laboratory Equipment. The total units manufactured for Construction Equipment were 50,000 units, while 400,000 units of Laboratory Equipment were manufactured. The sales price per unit was $650 and $475, for Construction and Laboratory Equipment, respectively. The total direct materials cost per unit was $95 and $75 for Construction and Laboratory Equipment, respectively, while director labor cost per unit was $75 and $55 for Construction and Labor Equipment, respectively. Total overhead costs were $49,500,000. XYZ Corporation decided to use ABC to distribute overhead costs to its products, thus the total overhead cost can be classified in three activities: Setups with a cost of $500,000, Engineering with a total cost of $44,000,000 and Packaging with a total cost of $5,000.000. The activity bases and usage per product is as follows: # of setups for Setup activity, # of machine hours for Engineering activity and # of shipments for the Packaging activity. The Construction Equipment required 400 setups, 300,000 machine hours and 50,000 shipments. The Laboratory Equipment required 100 setups, 300,000 machine hours and 200,000 shipments.  

What is the activity rate for the setup up activity?

What is the activity rate for the engineering activity?

What is the activity rate for the packaging activity?

What is the direct cost per unit for the Construction Equipment?

What is the total direct cost per unit for the Laboratory Equipment?

What is the total overhead cost per unit for the Construction Equipment if ABC is used?

What is the total overhead cost per unit for the Laboratory Equipment if ABC is used?

What is the total cost per unit for the Construction Equipment if ABC is used?

What is the total cost per unit for the Laboratory Equipment if ABC is used?

What is the profit per unit for the Construction Equipment if ABC is used?

What is the profit per unit for the Laboratory Equipment if ABC is used?

Solutions

Expert Solution

Conclusion table for the above question

Solution Particulars Amount in $
a. Activity rate for the setup up activity $1,000
b. Activity rate for the engineering activity $73.33
c. Activity rate for the packaging activity $20.00
d. Direct cost per unit for the Construction Equipment $280
e. Total direct cost per unit for the Laboratory Equipment $240
f. Total overhead cost per unit for the Construction Equipment if ABC is used $ 468
g. Total overhead cost per unit for the Laboratory Equipment if ABC is used $65.25
h. Total cost per unit for the Construction Equipment if ABC is used? $638
i Total cost per unit for the Laboratory Equipment if ABC is used? $195.25
j Profit per unit for the Construction Equipment if ABC is used $12.00
k Profit per unit for the Laboratory Equipment if ABC is used $ 279.75

Please do rate if my answer was found helpful. Thankyou !!!!!!

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

XYZ Corporation produces two products: Construction Equipment and Laboratory Equipment. The total units manufactured for Construction...
XYZ Corporation produces two products: Construction Equipment and Laboratory Equipment. The total units manufactured for Construction Equipment were 50,000 units, while 400,000 units of Laboratory Equipment were manufactured. The sales price per unit was $650 and $475, for Construction and Laboratory Equipment, respectively. The total direct materials cost per unit was $95 and $75 for Construction and Laboratory Equipment, respectively, while director labor cost per unit was $75 and $55 for Construction and Labor Equipment, respectively. Total overhead costs were...
ZYX Corporation produces two products: Construction Equipment and Laboratory Equipment. The total units manufactured for Construction...
ZYX Corporation produces two products: Construction Equipment and Laboratory Equipment. The total units manufactured for Construction Equipment were 50,000 units, while 400,000 units of Laboratory Equipment were manufactured. The sales price per unit was $650 and $475, for Construction and Laboratory Equipment, respectively. The total direct materials cost per unit was $95 and $75 for Construction and Laboratory Equipment, respectively, while director labor cost per unit was $75 and $55 for Construction and Labor Equipment, respectively. Total overhead costs were...
Carpenter Manufacturing Corporation produces highly specialized technical equipment, which is manufactured in the Product Construction department...
Carpenter Manufacturing Corporation produces highly specialized technical equipment, which is manufactured in the Product Construction department and tested in the Product Evaluation department. Carpenter has 1 Direct Cost Category (direct materials); 1 Indirect Cost Category (conversion costs); and wishes to compare the Weighted Average versus the FIFO methods of Process Costing. Data for the Product Construction department for March 2012 is as follows: Work In Process, March 1: Physical Units 5,858; Direct Materials (96% complete) $702,369; Conversion Costs (52% complete)...
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and...
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Rings 1,130 2 7 Dings 2,730 6 7 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $80,600. All of the labor hours take place in the Assembly Department, which has estimated...
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and...
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours per Unit Machine Hours per Unit   Rings 1,000 4 6   Dings 2,000 3 9 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $90,000. All of the labor hours take place in the Assembly Department, which has estimated...
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and...
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit   Rings 920 4 3   Dings 1,940 8 10 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $87,700. All of the labor hours take place in the Assembly Department, which has estimated...
Harris Corporation produces a single product. Last year, Harris manufactured 30,420 units and sold 24,900 units....
Harris Corporation produces a single product. Last year, Harris manufactured 30,420 units and sold 24,900 units. Production costs for the year were as follows: Fixed manufacturing overhead $395,460 Variable manufacturing overhead $258,570 Direct labor $142,974 Direct materials $234,234 Sales were $1,207,650, for the year, variable selling and administrative expenses were $136,950, and fixed selling and administrative expenses were $185,562. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income...
Krepps Corporation produces a single product. Last year, Krepps manufactured 27,120 units and sold 21,800 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 27,120 units and sold 21,800 units. Production costs for the year were as follows: Direct materials $ 222,384 Direct labor $ 124,752 Variable manufacturing overhead $ 208,824 Fixed manufacturing overhead $ 461,040 Sales totaled $915,600 for the year, variable selling and administrative expenses totaled $128,620, and fixed selling and administrative expenses totaled $197,976. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the...
Krepps Corporation produces a single product. Last year, Krepps manufactured 29,650 units and sold 24,600 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 29,650 units and sold 24,600 units. Production costs for the year were as follows: Direct materials $222,375 Direct labor $145,285 Variable manufacturing overhead $243,130 Fixed manufacturing overhead $563,350 Sales totaled $1,070,100 for the year, variable selling and administrative expenses totaled $140,220, and fixed selling and administrative expenses totaled $210,515. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the...
Krepps Corporation produces a single product. Last year, Krepps manufactured 29,650 units and sold 24,600 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 29,650 units and sold 24,600 units. Production costs for the year were as follows: Direct materials $222,375 Direct labor $145,285 Variable manufacturing overhead $243,130 Fixed manufacturing overhead $563,350 Sales totaled $1,070,100 for the year, variable selling and administrative expenses totaled $140,220, and fixed selling and administrative expenses totaled $210,515. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT