Question

In: Accounting

Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for...

Activity-Based Costing

Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools:

Fabrication
Department
Finishing
Department
Cost Driver
Maintenance $ 60,000 30,000 Machine hours
Materials handling 90,000 45,000 Material moves
Machine 210,000 15,000 Machine setups
Inspections

-

75,000

Inspection hours
Total

$ 360,000

$165,000

The following activity predictions were also made for the year:

Fabrication
Department
Finishing
Department
Machine hours 5,000 2,500
Material moves 1,500 750
Machine setups 350 25
Inspection hours - 500

It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, SW100 and SG150. The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates of activity-based rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models:

SW100 SG150
Direct materials cost $ 20,000 $ 30,000
Direct labor cost $ 8,000 $ 6,000
Machine hours (Fabrication) 250 350
Machine hours (Finishing) 100 50
Materials moves 20 40
Machine setups 5 10
Inspection hours 15 30

a. Determine the cost of one unit each of SW100 and SG150, assuming a company-wide overhead rate is used based on total machine hours.

Round rate to two decimal places.

Overhead rate based on total machine hours: $Answer


per machine hour

Use rounded overhead rate calculated about for calculations below. Round cost answers to the nearest whole number. Round cost per unit to two decimal places.

Product Costs per Unit SW100 SG150
Direct materials Answer


Answer


Direct labor Answer


Answer


Manufacturing overhead Answer


Answer


Total cost per batch Answer


Answer


Number of units per batch Answer


Answer


Cost per unit Answer


Answer


b. Determine the cost of one unit of SW100 and SG150, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments.

Round to two decimal places, if applicable.

Overhead rate based on machine hours for Fabrication Dept.: $Answer


per machine hour.

Overhead rate based on machine hours for Finishing Dept.: $Answer


per machine hour.

Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.

Product Costs per Unit SW100 SG150
Direct materials Answer


Answer


Direct labor Answer


Answer


Manufacturing overhead:
Fabrication Dept. Answer


Answer


Finishing Dept.

Answer


Answer


Total cost per batch

Answer


Answer


Number of units per batch Answer


Answer


Cost per unit

Answer


Answer


c. Determine the cost of one unit of SW100 and SG150, assuming activity-based overhead rates are used for maintenance, materials handling, machine setup, and inspection activities.

Round rate to two decimal places, if applicable.

Activity-based overhead rates:
Maintenance Answer


Materials handling Answer


Machine setup Answer


Inspection activities Answer


Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.

Product Costs per Unit SW100 SG150
Direct materials Answer


Answer


Direct labor Answer


Answer


Manufacturing overhead:
Maintenance activity Answer


Answer


Materials handling activity Answer


Answer


Machine setups activity Answer


Answer


Inspections activity

Answer


Answer


Total cost per batch Answer


Answer


Number of units per batch Answer


Answer


Cost per unit

Answer


Answer


Solutions

Expert Solution


Related Solutions

Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for...
Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: Fabrication Department Finishing Department Cost Driver Maintenance $ 60,000 30,000 Machine hours Materials handling 90,000 45,000 Material moves Machine 210,000 15,000 Machine setups Inspections - 75,000 Inspection hours Total $ 360,000 $165,000 The following activity predictions were also made for the year: Fabrication Department Finishing Department Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25 Inspection...
Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for...
Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: Fabrication Department Finishing Department Cost Driver Maintenance $ 54,000 27,000 Machine hours Materials handling 81,000 40,500 Material moves Machine 189,000 13,500 Machine setups Inspections - 67,500 Inspection hours Total $ 324,000 $ 148,500 The following activity predictions were also made for the year: Fabrication Department Finishing Department Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25...
Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for...
Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: Fabrication Department Finishing Department Cost Driver Maintenance $ 54,000 27,000 Machine hours Materials handling 81,000 40,500 Material moves Machine 189,000 13,500 Machine setups Inspections - 67,500 Inspection hours Total $ 324,000 $ 148,500 The following activity predictions were also made for the year: Fabrication Department Finishing Department Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25...
Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for...
Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: Fabrication Department Finishing Department Cost Driver Maintenance $ 54,000 27,000 Machine hours Materials handling 81,000 40,500 Material moves Machine 189,000 13,500 Machine setups Inspections - 67,500 Inspection hours Total $ 324,000 $ 148,500 The following activity predictions were also made for the year: Fabrication Department Finishing Department Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25...
Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for...
Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: Fabrication Department Finishing Department Cost Driver Maintenance $ 60,000 30,000 Machine hours Materials handling 90,000 45,000 Material moves Machine 210,000 15,000 Machine setups Inspections - 75,000 Inspection hours Total $ 360,000 $165,000 The following activity predictions were also made for the year: Fabrication Department Finishing Department Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25 Inspection...
Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given...
Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: Fabrication Department Finishing Department Cost Driver Maintenance $96 ,000 48,000 Machine hours Materials handling 144,000 72,000 Material moves Machine 336,000 24,000 Machine setups Inspections - 120,000 Inspection hours Total $ 576,000 $264 ,000 The following activity predictions were also made for the year: Fabrication Department Finishing Department Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25 Inspection hours...
Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given...
Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: Fabrication Department Finishing Department Cost Driver Maintenance $ 36,000 18,000 Machine hours Materials handling 54,000 27,000 Material moves Machine 126,000 9,000 Machine setups Inspections - 45,000 Inspection hours Total $ 216,000 $ 99,000 The following activity predictions were also made for the year: Fabrication Department Finishing Department Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25 Inspection hours...
Question text Activity-Based Costing Slack Corporation has the following predicted indirect costs and cost drivers for...
Question text Activity-Based Costing Slack Corporation has the following predicted indirect costs and cost drivers for 2016 for the given activity cost pools: Fabrication Department Finishing Department Cost Driver Maintenance $80,000 $70,000 Machine hours Materials handling 30,000 15,000 Material moves Machine setups 70,000 5,000 Machine setups Inspections - 25,000 Inspection hours $180,000 $115,000 The following activity predictions were also made for the year: Fabrication Department Finishing Department Machine hours 10,000 5,000 Material moves 3,000 1,500 Machine setups 700 50 Inspection...
Exercise C: Activity-Based Costing Erte, Inc. has the following predicted indirect costs and cost drivers for...
Exercise C: Activity-Based Costing Erte, Inc. has the following predicted indirect costs and cost drivers for 2017 for the given activity cost pools: Manufacture Department Finishing Department Cost Driver Maintenance $30,000 $15,000 Machine hours Materials handling $40,000 $25,000 Material moves Machine setups $80,000 $5,000 Machine setups Inspections $0 $20,000 Inspection hours Total 150,000 $65,000 The following activity predictions were also made for the year: Manufacture Department Finishing Department Machine hours 15,000 8,000 Materials moves 5,000 3,500 Machine setups 900 150...
Slack Corporation has the following predicted indirect costs and cost drivers for 2019 for the given...
Slack Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: Fabrication Department Finishing Department Cost Driver Maintenance $20,000 $10,000 Machine hours Materials handling 30,000 15,000 Material moves Machine setups 70,000 5,000 Machine setups Inspections - 25,000 Inspection hours $120,000 $55,000 The following activity predictions were also made for the year: Fabrication Department Finishing Department Machine hours 10,000 5,000 Material moves 3,000 1,500 Machine setups 700 50 Inspection hours - 1,000 It...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT