Question
In: Accounting
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows:
|
1 |
Activity |
Activity Cost Pool |
|
2 |
Production |
$251,598.00 |
|
3 |
Setup |
92,035.00 |
|
4 |
Material handling |
10,736.00 |
|
5 |
Inspection |
49,833.00 |
|
6 |
Product engineering |
136,230.00 |
|
7 |
Total |
$540,432.00 |
The activity bases identified for each activity are as follows:
| Activity | Activity Base |
|---|---|
| Production | Machine hours |
| Setup | Number of setups |
| Material handling | Number of parts |
| Inspection | Number of inspection hours |
| Product engineering | Number of engineering hours |
The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows:
| Machine | Number of | Number of | Number of | Number of | ||
| Hours | Setups | Parts | Inspection Hours | Engineering Hours | Units | |
| Alpha | 970 | 63 | 84 | 489 | 123 | 1,354 |
| Beta | 802 | 123 | 138 | 272 | 170 | 1,044 |
| Omega | 435 | 209 | 266 | 256 | 185 | 452 |
| Total | 2,207 | 395 | 488 | 1,017 | 478 | 2,850 |
Each product requires 40 minutes per unit of machine time.
|
Required: 1. Activity Table - Alpha |
|
Complete the Activity Table for
Alpha.
|
| Alpha | |||||
| Activity | Activity- | ||||
| Base | Activity | Activity | |||
| Usage | X | Rate | = | Cost | |
| Production | mh | /mh | |||
| Setup | setups | /setup | |||
| Material handling | parts | /part | |||
| Inspection | insp. hours | /hour | |||
| Engineering | eng. hours | /hour | |||
| Total activity cost | |||||
| Number of units | |||||
| Activity cost per unit | |||||
2. Activity Table - beta
Complete the Activity Table for
Beta.
|
| Beta | |||||
| Activity | Activity- | ||||
| Base | Activity | Activity | |||
| Usage | X | Rate | = | Cost | |
| Production | mh | /mh | |||
| Setup | setups | /setup | |||
| Material handling | parts | /part | |||
| Inspection | insp. hours | /hour | |||
| Engineering | eng. hours | /hour | |||
| Total activity cost | |||||
| Number of units | |||||
| Activity cost per unit | |||||
3, Activity Table - Omega
Complete the Activity Table for
Omega.
|
| Omega | |||||
| Activity | Activity- | ||||
| Base | Activity | Activity | |||
| Usage | X | Rate | = | Cost | |
| Production | mh | /mh | |||
| Setup | setups | /setup | |||
| Material handling | parts | /part | |||
| Inspection | insp. hours | /hour | |||
| Engineering | eng. hours | /hour | |||
| Total activity cost | |||||
| Number of units | |||||
| Activity cost per unit | |||||
Solutions
ekkarill92 answered 10 months agoRelated Solutions
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:
1
Activity
Activity Cost Pool
2
Production
$259,200.00
3
Setup
55,000.00
4
Material handling
9,750.00
5
Inspection
60,000.00
6
Product engineering
123,200.00
7
Total
$507,150.00
The activity bases identified for...
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:
1
Activity
Activity Cost Pool
2
Production
$278,280.00
3
Setup
82,677.00
4
Material handling
11,110.00
5
Inspection
54,918.00
6
Product engineering
144,361.00
7
Total
$571,346.00
The activity bases identified for...
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:
1
Activity
Activity Cost Pool
2
Production
$242,089.00
3
Setup
88,425.00
4
Material handling
9,253.00
5
Inspection
49,623.00
6
Product engineering
167,990.00
7
Total
$557,380.00
The activity bases identified for...
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:
1
Activity
Activity Cost Pool
2
Production
$242,089.00
3
Setup
88,425.00
4
Material handling
9,253.00
5
Inspection
49,623.00
6
Product engineering
167,990.00
7
Total
$557,380.00
The activity bases identified for...
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:?
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:
1
Activity
Activity Cost Pool
2
Production
$270,840.00
3
Setup
98,945.00
4
Material handling
10,604.00
5
Inspection
44,100.00
6
Product engineering
139,380.00
7
Total
$563,869.00
The activity bases identified for...
QUESTION 1 Utilization of a Constrained Resource Westburne Company produces three products: Alpha, Omega and Beta....
QUESTION 1
Utilization of a Constrained Resource
Westburne Company produces three products: Alpha, Omega and
Beta. Data (per unit) concerning the three products follow:
Alpha
Omega
Beta
Selling
price
$160
$112
$140
Less variable expenses:
Direct
materials
48
30
18
Labour and
overhead
48
54
80
Total variable
expenses
96
84
98
Contribution
margin
$64
$28
$42
Contribution margin
ratio
40%
25%
30%
Demand for the company's...
A company manufactures three products, Alpha, Beta, and Gama. Total overhead costs amount to $ 560,000....
A company manufactures three products, Alpha, Beta, and Gama.
Total overhead costs amount to $ 560,000. The company allocates
these costs to products based on a predetermined overhead rate,
calculated by dividing $ 560,000 by the total number of budgeted
direct labor hours. This number for the current year is 70,000
hours.
• Alfa used 12,000 hours and 16,000 units were produced
• Beta used 24,000 hours and 19,200 units were produced
• Gama used 34,000 hours and 20,000 units...
Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively....
Cane Company manufactures two products called Alpha and Beta
that sell for $185 and $120, respectively. Each product uses only
one type of raw material that costs $5 per pound. The company has
the capacity to annually produce 112,000 units of each product. Its
average cost per unit for each product at this level of activity
are given below:
Alpha
Beta
Direct materials
$
30
$
10
Direct
labor
22
29
Variable
manufacturing overhead
20
13
Traceable fixed
manufacturing overhead...
Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively....
Cane Company manufactures two products called Alpha and Beta
that sell for $185 and $120, respectively. Each product uses only
one type of raw material that costs $5 per pound. The company has
the capacity to annually produce 112,000 units of each product. Its
average cost per unit for each product at this level of activity
are given below:
The company considers its traceable fixed manufacturing overhead
to be avoidable, whereas its common fixed expenses are unavoidable
and have been...
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