Question
In: Accounting
Hails Corporation manufactures two products: Product Q21F and Product H44W. The company uses a plantwide overhead...
Hails Corporation manufactures two products: Product Q21F and Product H44W. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Q21F and H44W.
| Activity Cost Pool | Activity Measure | Total Cost | Total Activity | |||||||
| Machining | Machine-hours | $ | 195,000 | 13,000 | MHs | |||||
| Machine setups | Number of setups | $ | 90,000 | 150 | setups | |||||
| Product design | Number of products | $ | 64,000 | 2 | products | |||||
| Order size | Direct labor-hours | $ | 280,000 | 10,000 | DLHs | |||||
| Activity Measure | Product Q21F | Product H44W | ||||||||
| Machine-hours | 9,000 | 4,000 | ||||||||
| Number of setups | 80 | 70 | ||||||||
| Number of products | 1 | 1 | ||||||||
| Direct labor-hours | 6,000 | 4,000 | ||||||||
Using the ABC system, the percentage of the total overhead cost that is assigned to Product Q21F is closest to:
Solutions
ekkarill92 answered 1 year agoRelated Solutions
1) Bippus Corporation manufactures two products: Product X08R and Product P56L. The company uses a plantwide...
1)
Bippus Corporation manufactures two products: Product X08R and Product P56L. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products X08R and P56L.
Activity Cost Pool
Activity Measure
Total Cost
Total Activity
Machining
Machine-hours
$
247,000
13,000
MHs
Machine setups
Number of setups
$...
Carpenter Corporation manufactures two products, Product A and Product B. The company uses an Activity Based...
Carpenter Corporation manufactures two products, Product A and
Product B.
The company uses an Activity Based Costing System that assigns
costs based on activity cost drivers.
The following data is available:
Product A
Product B
Total
Direct Materials Cost (per unit)
$70
$140
Direct Labor Costs (per hour)
$20
$30
Supporting Labor Costs
$16,000
Utilities and Repairs Costs
$96,000
Order Processing Costs
$24,560
Direct Labor (Production) Hours (per unit)
2
3
Production Units
2,400
800
Supporting Labor (hours)
600
200
Customer...
Makes two products and uses a traditional costing system in which a single plantwide predetermined overhead...
Makes two products and uses a traditional costing system in
which a single plantwide predetermined overhead rate is computed on
direct labour hours. Data for the two products for the upcoming
year follow:
Direct Materials cost per unit
28.00
10.00
Direct labour Cost per unit
5
7.4
Direct labour hours per unit
1
1.1
Number of units produced
38000
90000
1. The company's manufacturing overhead costs for the year are
expected to be 1644000. Using the company's traditional costing
system,...
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The company uses a single plantwide factory overhead rate. The
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allocates factory overhead based on direct labor hours. The company
plans to make 100,000 shirts and 50,000 pairs of pants. It takes 2
direct labor hours to make a shirt and 3 direct labor hours to make
a pair of pants. What are the total number of direct labor hours?
What is the single plantwide factory overhead rate?
Answers should...
Rosman, Inc., manufactures and sells two products: Product Q1 and Product G2. The company currently uses...
Rosman, Inc., manufactures and sells two products: Product Q1
and Product G2. The company currently uses a plantwide
predetermined overhead rate based on direct labor-hours. Data
concerning the expected production of each product and the expected
total direct labor-hours (DLHs) required to produce that output
appear below:
Expected Production
Direct
Labor-Hours Per Unit
Total
Direct Labor-Hours
Product
Q1
720
13.2
3,960
Product
G2
820
10.2
3,240
Total
direct labor-hours
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The...
Immen Corporation manufactures two products: Product B820 and Product P99Y
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The Cuthill Company manufactures two products: M1 and H1. Each product uses skilled labour, and the...
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available for the following year are limited to 27274 hours. Data
for each of the two products is as follows:
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H1
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$51.07
Hours of skilled labour per unit
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Maximum product demand (units)
6383
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Select one:
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b....
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costing system in which a single plantwide predetermined overhead
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products for the upcoming year follow:
Mercon
Wurcon
Direct materials cost per unit
$
15.00
$
13.00
Direct labor cost per unit
$
6.00
$
9.00
Direct labor-hours per unit
0.40
3.05
Number of units produced
2,000
4,000
These products are customized to some degree for specific
customers.
Required:
1. The...
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide...
Kunkel Company makes two products and uses a conventional
costing system in which a single plantwide predetermined overhead
rate is computed based on direct labor-hours. Data for the two
products for the upcoming year follow: Mercon Wurcon Direct
materials cost per unit $ 11.00 $ 9.00 Direct labor cost per unit $
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produced 2,000 4,000 These products are customized to some degree
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1. The company's...
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide...
Kunkel Company makes two products and uses a conventional
costing system in which a single plantwide predetermined overhead
rate is computed based on direct labor-hours. Data for the two
products for the upcoming year follow:
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are customized to some degree for specific customers.
Required: 1. The...
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