Compute the ABC rates based on the following information: Activity Cost Pool (a) Estimated Overhead Cost...

Compute the ABC rates based on the following information:

Activity Cost Pool	(a) Estimated Overhead Cost	(b) Expected Activity
Labor related...........................	$ 5,200	800	DLHs
Machine related.......................	1,500	2,000	MHs
Machine setups........................	4,200	100	setups
Production orders.....................	1,800	50	orders
Product testing........................	4,800	200	tests
Packaging...............................	7,000	500	packages
General factory........................	108,800	800	DLHs

Compute the single overall predetermined overhead rate based entirely on direct labor-hours:

Compute the cost for completing 100,000 widgets if the direct materials cost was $45,000 and the Direct labor cost was $60,000. They data for activity based costing is below:


Actual Activity
400	DLHs
900	MHs
20	setups
20	orders
40	tests
200	packages

Expert Solution

ekkarill92 answered 2 years ago

1. The following table lists out the overhead cost: Activity cost pool Overhead cost (£) Additional...

1. The following table lists out the overhead cost: Activity cost pool Overhead cost (£) Additional Notes Job-order set up 33,000 Procurement and placement 360,000 Installation of winding system 195,000 An auto winding system is fitted with every watch Quality inspection (machine) 60,000 Quality inspection (manual) 21,000 Finishing 140,000 Hand-made finishing Packaging and delivery 44,250 The company packages and delivers watches in batches containing 10 watches per batch. On an average, the packaging and delivery cost is the same for...

The following table lists out the overhead cost: Activity cost pool Overhead cost (£) Additional Notes...

The following table lists out the overhead cost: Activity cost pool Overhead cost (£) Additional Notes Job-order set up 25,000 Procurement and placement 350,000 Installation of winding system 170,000 An auto winding system is fitted with every watch Quality inspection (machine) 70,000 Quality inspection (manual) 24,000 Finishing 160,000 Hand-made finishing Packaging and delivery 44,250 The company packages and delivers watches in batches containing 10 watches per batch. On an average, the packaging and delivery cost is the same for all...

Texas Co. established the following overhead cost pools and cost drivers: Budgeted Estimated Overhead Cost Pool...

Texas Co. established the following overhead cost pools and cost drivers: Budgeted Estimated Overhead Cost Pool Overhead Cost Driver Cost Driver Level Quality controls $780,000 # of inspections 26,000 inspections Machine setups $720,000 # of setups 12,000 setups Other overhead costs $900,000 # of machine hrs 50,000 machine hrs Total overhead costs $2,400,000 A recent order for sailboats used: Quality inspections 750 inspections Machine setups 500 setups Machine hours (MHs) 2,400 machine hours Required: a. What is the overhead rate...

In activity-based costing, each major activity has its own overhead cost pool, its own activity measure,...

In activity-based costing, each major activity has its own overhead cost pool, its own activity measure, and its own overhead rate. True or False TrueFalse

Activity rates are determined by a. dividing the actual cost for each activity pool by the...

Activity rates are determined by a. dividing the actual cost for each activity pool by the estimated activity base for that pool. b. dividing the cost budgeted for each activity pool by the actual activity base in that pool. c. dividing the cost budgeted for each activity pool by the estimated activity base for that pool. d. dividing the actual cost for each activity pool by the actual activity base for that pool.

Kam Company has the following cost pools, drivers, and pool rates for its activity-based costing system:...

Kam Company has the following cost pools, drivers, and pool rates for its activity-based costing system: Pool Driver Rate Design design hours $2,200 per design hour Creation machine hours $80 per MH Ordering of Parts number of orders $300 per order Al Company placed and order with Kam Company for 2,000 units of a custom product. The order required 15 design hours, 900 machine hours, and one parts order. How much overhead cost is assigned to Al's order using activity-based...

Two-Stage ABC for Manufacturing with Variances Montreat Manufacturing has developed the following activity cost pool information...

Two-Stage ABC for Manufacturing with Variances Montreat Manufacturing has developed the following activity cost pool information for its 2016 manufacturing activities: Budgeted Activity Cost Activity Cost Driver at Practical Capacity Purchasing and materials handling $2,700,000 900,000 kilograms Setup 2,800,000 1,120 setups Machine operations 3,816,000 12,000 hours First unit inspection 200,000 1,000 batches Packaging 1,000,000 312,500 units Actual 2016 production information is as follows: Standard Product A Standard Product B Specialty Products Units 150,000 100,000 50,000 Batches 100 80 600 Setups*...

In activity-based costing, the activity rate for an activity cost pool is computed by dividing...

In activity-based costing, the activity rate for an activity cost pool is computed by dividing the total overhead cost in the activity cost pool by: Multiple Choice the total activity for the activity cost pool. the direct labor-hours required by the product. the machine-hours required by the product. the total direct labor-hours for the activity cost pool.

Calculating Activity-Based Costing Overhead Rates 1. Calculate the cost per unit of activity driver for each...

Calculating Activity-Based Costing Overhead Rates 1. Calculate the cost per unit of activity driver for each activity cost category. Setup $_____ Production scheduling $______ Production engineering $______ Supervision $_______ Machine maintenance $______ 2. Calculate the cost of Job 845 using ABC to assign the overhead costs. $______ 3. Calculate the cost of Job 845 using the plantwide overhead rate based on machine hours. (Round your answer to the nearest dollar.) $_____ A food company had the following activities and costs:...

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...

Question