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,...
The company uses a single plantwide factory overhead rate. The budgeted Factory Overhead Costs for the...
The company uses a single plantwide factory overhead rate. The
budgeted Factory Overhead Costs for the year are $1,400,000 and
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
7,200
The...
Immen Corporation manufactures two products: Product B820 and Product P99Y
Immen Corporation manufactures two products: Product B82O and Product P99Y. 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 B82O and P99Y.Activity Cost PoolActivity MeasureTotal CostTotal ActivityMachiningMachine-hours$330,00015,000MHsMachine setupsNumber of setups$300,000500setupsProduct designNumber of products$46,0002productsGeneral factoryDirect labor-hours$330,00010,000DLHsActivity MeasureProduct B82OProduct P99YMachine-hours7,0008,000Number of setups200300Number of products11Direct labor-hours3,0007,000Using the plantwide...
The Cuthill Company manufactures two products: M1 and H1. Each product uses skilled labour, and the...
The Cuthill Company manufactures two products: M1 and H1. Each
product uses skilled labour, and the total hours of skilled labour
available for the following year are limited to 27274 hours. Data
for each of the two products is as follows:
M1
H1
Contribution margin per unit
$32.07
$51.07
Hours of skilled labour per unit
2.5
2.95
Maximum product demand (units)
6383
4642
What is the maximum contribution margin that can be achieved next
year?
Select one:
a. $411272
b....
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
$
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 $
3.00 $ 4.00 Direct labor-hours per unit 1.00 7.50 Number of units
produced 2,000 4,000 These products are customized to some degree
for specific customers.
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:
Mercon Wurcon Direct materials cost per unit $ 14.00 $ 11.00
Direct labor cost per unit $ 10.00 $ 13.00 Direct labor-hours per
unit 1.00 12.50 Number of units produced 1,000 2,000 These products
are customized to some degree for specific customers.
Required: 1. The...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A chemist has a substance which was either phenol or resorcinol. He puts the substance in...
- I need new and unique answers, please. (Use your own words, don't copy and paste), Please...
- Discuss system hardening strategies and techniques including updates and patches, default logon/passwords, anonymous access, removal of...
- What types of stories do you enjoy? Why are stories important?
- Read the privacy policy of a large, popular website. Write a brief summary. Identify the site...
- When σ is unknown and the sample is of size n ≥ 30, there are two...
- Draw a directed graph consisting of five nodes, each of which is path connected to every...
ADVERTISEMENT