Question
In: Accounting
Rocky Biking Company has four activity cost pools and two different models of bike: Standard and...
Rocky Biking Company has four activity cost pools and two different models of bike: Standard and Adventure. Below is the cost information:
Cost Drivers by Model
Activity Cost Pool Cost Driver Est. Overhead Standard Adventure
Ordering and Receiving Orders $210,000 750 300
Machine Setup Setups 135,000 150 300
Assembly Parts 1,125,000 225,000 375,000
Inspection Inspections 720,000 1,050 750
Instructions
Calculate the overhead cost per unit for each product. Production is 5,000 units of Standard and 3,000 units of Adventure. (Round your answer to the nearest DOLLAR)
|
Overhead cost per unit: Standard = ____________________ Adventure = ___________________ |
Solutions
Expert Solution
| Activity Usage | Allocation | ||||||||
| Activity | Est OH | Standard | Adventure | Total | Activity Rate | Standard | Adventure | ||
| Ordering And Receiving | 2,10,000.0 | 750 | 300 | 1,050.0 | 200.0000 | 1,50,000 | 60,000 | ||
| Machine Setup | 1,35,000.0 | 150 | 300 | 450.0 | 300.0000 | 45,000 | 90,000 | ||
| Assembly | 11,25,000.0 | 225000 | 375000 | 6,00,000.0 | 1.8750 | 4,21,875 | 7,03,125 | ||
| Inspection | 7,20,000.0 | 1050 | 750 | 1,800.0 | 400.0000 | 4,20,000 | 3,00,000 | ||
| 21,90,000 | Total Cost | 10,36,875 | 11,53,125 | ||||||
| Units | 5000 | 3000 | |||||||
| OH Cost PU | 207 | 384 | |||||||
ekkarill92 answered 1 year agoRelated Solutions
The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost...
The controller for Tulsa Medical Supply Company has established
the following activity cost pools and cost drivers.
Activity Cost Pool
Budgeted Overhead Cost
Cost Driver
Budgeted
Level for Cost
Driver
Pool Rate
Machine setups
$
440,000
Number of setups
110
$
4,000
per setup
Material handling
105,000
Weight of raw material
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lb.
$
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per pound
Hazardous waste control
60,000
Weight of hazardous chemicals used
6,000
lb.
$
10
per pound
Quality control
225,000
Number of inspections
3,000
$...
The Blossum Company has an activity –based costing system with three activity cost pools-Design, Marketing, and...
The Blossum Company has an activity –based costing
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The company’s overhead costs, which consist of equipment
depreciation and indirect labor, have been allocated to the cost
pools already.
Costs in the Design cost pool are assigned to products
based on Direct Labor Hours (DLH’s) and the costs in the Marketing
cost pool are assigned to products based on the number of cases.
Costs in the other cost pool are not assigned...
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Sonoma Manufacturing has five activity cost pools and two products (a budget tape vacuum and a...
Sonoma Manufacturing has five activity cost pools and two
products (a budget tape vacuum and a deluxe tape vacuum).
Information is presented below:
Cost
Drivers by Product
Activity Cost
Pool Cost
Driver Est.
Overhead Budget
Deluxe
Ordering and
Receiving Orders $ 120,000 600 400
Machine
Setup Setups 297,000 500 400
Machining Machine
hours 1,000,000 150,000 100,000
Assembly Number
of
Parts 1,600,000 1,400,000 800,000
Inspection Inspections 300,000 550 450
Instructions
Compute the estimated overhead cost per unit for each product.
Production is 700,000 units of Budget and 200,000 units of Deluxe.
Round your answer to the nearest cent.
Assume Sonoma used a more traditional OH...
Randel Manufacturing has five activity cost pools and two products (a budget tape vacuum and a...
Randel Manufacturing has five activity cost pools and two
products (a budget tape vacuum and a deluxe tape vacuum).
Information is presented below:
Cost
Drivers by Product
Activity Cost
Pool Cost
Driver Est.
Overhead
Budget
Deluxe
Ordering and Receiving
Orders
$
130,000
600
400
Machine Setup
Setups
297,000
500
400
Machining
Machine hours
1,000,000
150,000
100,000
Assembly
Parts
1,600,000
1,200,000
800,000
Inspection
Inspections
300,000
550
450
Instructions
Compute the overhead cost per unit for each product. Production
is 700,000 units of...
Sonoma Manufacturing has five activity cost pools and two products (a budget tape vacuum and a...
Sonoma Manufacturing has five activity cost pools and two
products (a budget tape vacuum and a deluxe tape vacuum).
Production is 700,000 units of Budget and 200,000 units of Deluxe.
Information is presented below:
Cost Drivers by Product
Activity Cost Pool
Cost Driver
Estimated Overhead
Budget
Deluxe
Ordering and Receiving
Orders
$120,000
600
400
Machine Setup
Setups
$297,000
500
400
Machining
Machine hours
$1,000,000
150,000
100,000
Assembly
Parts
$1,400,000
1,200,000...
2) Gable Company uses three activity cost pools. Each pool has a cost driver. Information for...
2)
Gable Company uses three activity cost pools. Each pool has a
cost driver. Information for Gable Company follows:
Activity Cost Pools
Total Cost of Pool
Cost
Driver
Estimated Cost Driver
Machining
$
380,120
Number of machine hours
88,400
Designing costs
86,400
Number of design hours
9,000
Setup costs
74,672
Number of batches
525
Suppose that Gable Company manufactures three products, A, B, and
C. Information about these products follows:
Product A
Product B
Product C
Number of machine hours...
Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable...
Gable Company uses three activity cost pools. Each pool has a
cost driver. Information for Gable Company follows:
Activity Cost Pools
Total Cost of Pool
Cost Driver
Estimated Cost Driver
Machining
$
259,000
Number of machine hours
85,600
Designing costs
59,000
Number of design hours
7,800
Setup costs
72,000
Number of batches
370
Required:
1. Compute the activity rate for each activity.
(Round your answers to 2 decimal places.)
Activity
Activity Rate
Machining
per Machine Hrs
Design Costs
per Design...
Flynn Industries has three activity cost pools and two products. It expects to produce 2,560 units...
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It expects to produce 2,560 units of Product BC113 and 1,220 of
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relative to those activity cost pools and cost drivers. Annual
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The controller for Vitrina Inc. has established the following activity cost pools and cost drivers. ...
The controller for Vitrina Inc. has established the following
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Budgeted
Budgeted
Overhead
Level for
Activity Cost Pool Cost Cost
Driver
Cost Driver
Machine setups
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Number of
setups 160
Material handling
100,000
Weight of
material 50,000 kilograms
Waste
control
50,000
Weight of
chemicals
10,000 kilograms
Quality control
75,000
Number of
inspections 300
Other overhead costs
200,000
Machine
hours 20,000...
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