Question

In: Accounting

Using the ABC data, determine the total amount of overhead cost assigned to each product.

Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company’s five activity cost pools:

Activity Cost Pool Activity Measure Expected
Overhead Cost		 Expected
Activity
Labor-related Direct labor-hours $ 30,115 1,585 DLHs
Purchase orders Number of orders $ 2,320 580 orders
Product testing Number of tests $ 6,930 330 tests
Template etching Number of templates $ 870 30 templates
General factory Machine-hours $ 65,100 9,300 MHs
 

2. The expected activity for the year was distributed among the company’s four products as follows:

  Expected Activity
Activity Cost Pool Product A Product B Product C Product D
Labor-related (DLHs) 625 160 400 400
Purchase orders (orders) 30 190 170 190
Product testing (tests) 190 55 0 85
Template etching (templates) 0 17 10 3
General factory (MHs) 3,600 1,700 1,700 2,300
 

Using the ABC data, determine the total amount of overhead cost assigned to each product.

 
 
  Total Overhead Cost
Product A  
Product B  
Product C  
Product D  

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Using the ABC data, determine the total amount of overhead cost assigned to each product.
Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Activity Measure ExpectedOverhead Cost Expected Activity Labor-related Direct labor-hours $ 311,500   44,500   DLHs Purchase orders Number of orders $ 8,840   221   orders Parts management Number of part types $ 71,280   99   part types Board etching Number of boards $ 63,700   1,820...
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product TOSP?
Kulka Corporation manufactures two products Product F82D and Product TO5P. 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 F82D and TO5P. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product TOSP?Multiple Choice $147,000$304,500 $156,000$303,000
determine the total amount of manufacturing overhead,product costs & period costs
Caroline Company reports the following costs and expenses in May.Factory Utilities 11,500Depreciation on factory equipment 12,650Depreciation on delivery trucks 3,800Indirect factory labor 48,900indirect materials 80,800Direct materials used 137,600Factory manager's salary 8,000Direct labor 69,100Sales salaries 46,400Property taxes on factory building 2,500Repairs to office equipment 1,300factory repairs 2,000Advertising 18,000office supplies used 2,640 InstructionsFrom the information, determine the total amount of:(a) Manufacturing overhead.(b) Product costs.(c) Period costs.
Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?
14-4The manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:Activity Cost PoolActivity MeasureEstimated Overhead CostExpectedActivityMachiningMachine-hours$203,00010,000MHsMachine setupsNumber of setups$121,900230setupsProduction designNumber of products$87,0002productsGeneral factoryDirect labor-hours$379,50015,000DLHsActivity MeasureProduct YProduct ZMachining8,3001,700Number of...
Prepare a report showing the overhead cost of the order for hard rock drills according to the ABC system. What is the total overhead cost assigned to the order?
Ace Mining Tools Ltd. of Calgary makes specialty tools used in the mining industry. The company uses an ABC system for internal decision making. The company has four activity cost pools, as listed below:   Activity Cost Pool Activity Measure Activity Rate Order size Direct labour-hours $17.60 Customer orders Customer orders $360.00 Product testing Testing hours $79.00 Selling Sales calls $750.00   The managing director of the company would like information concerning the cost of a recently completed order for...
Using the activity-based costing approach, determine the overhead cost per unit for each product.
Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 3,300 units of Product F and 3,700 units of Product G during the current year. The company uses activity-based costing to compute unit product costs for external reports. Data relating to the company's three activity cost pools are given below for the current year:EstimatedExpected ActivityActivity Cost PoolOverhead CostProduct FProduct GTotalMachine setups$20,400144setups96setups240setupsPurchase orders$129,320854orders1,586orders2,440ordersOrder size$75,6001,310hours1,210hours2,520hoursRequired:Using the activity-based costing approach, determine the overhead cost per unit...
Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?
The Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:Activity Cost PoolActivity MeasureEstimated Overhead CostExpectedActivityMachiningMachine-hours$203,00010,000MHsMachine setupsNumber of setups$121,900230setupsProduction designNumber of products$87,0002productsGeneral factoryDirect labor-hours$379,50015,000DLHsActivity MeasureProduct YProduct ZMachining8,3001,700Number...
Determine the estimated total cost and cost per unit of each product
Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $15,680. The booth will be open 32 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $188 per package. She will continue to sell the existing product, EZRecords, which costs $108 per package. Ms. Ortega...
From the information, determine the total amount of: (a) Manufacturing overhead $ (b) Product costs $ (c) Period costs $
Question Description Knight Company reports the following costs and expenses in May. Factory utilities   $15,500   Direct labor   $69,100 Depreciation on factory equipment   12,650   Sales salaries   46,400 Depreciation on delivery trucks   3,800   Property taxes on factory building   2,500 Indirect factory labor   48,900   Repairs to office equipment   1,300 Indirect materials   80,800   Factory repairs   2,000 Direct materials used   137,600   Advertising   15,000 Factory manager’s salary  ...
Total cost of producing each product
A manufacturing company produces three products: A, B, and C. The following data is available for the year: Product A: 10,000 units produced, direct materials cost per unit $5, direct labor cost per unit $10, manufacturing overhead cost per unit $8.Product B: 5,000 units produced, direct materials cost per unit $8, direct labor cost per unit $12, manufacturing overhead cost per unit $10.Product C: 3,000 units produced, direct materials cost per unit $12, direct labor cost per unit $15, manufacturing...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT