0, inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges ware produced, and overhead costs of $83.160 were estimated. An analysis of estimated overhead costs reveals the following activities. 1 Materials handling 2 Machina setups Quality inspections 3 Activities The cost driver volume for each product was as follows Cost Drivers Number of requisitions Number of setups Number of inspections (a) Materials handling Machine setups Determine the overhead rate for each activity. (b) Cost Drivers Number of requisitions Number of setups Number of inspections Quality inspections $ Total cost assigned Instruments Gauges Total 625 1,030 520 490 405 180 240 $ Overhead cost per Unit 5 250 Assign the manufacturing overhead costs for April to the t decinal places, eg 1225) Overhead Rate 34 Instruments Total Cost 33 $35,020 27,560 20,500 $83,160 per requisition per setup per inspection products using activity-based costing (Round per unit answers to 2 Gauges
0, inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges ware produced, and overhead costs of $83.160 were estimated. An analysis of estimated overhead costs reveals the following activities. 1 Materials handling 2 Machina setups Quality inspections 3 Activities The cost driver volume for each product was as follows Cost Drivers Number of requisitions Number of setups Number of inspections (a) Materials handling Machine setups Determine the overhead rate for each activity. (b) Cost Drivers Number of requisitions Number of setups Number of inspections Quality inspections $ Total cost assigned Instruments Gauges Total 625 1,030 520 490 405 180 240 $ Overhead cost per Unit 5 250 Assign the manufacturing overhead costs for April to the t decinal places, eg 1225) Overhead Rate 34 Instruments Total Cost 33 $35,020 27,560 20,500 $83,160 per requisition per setup per inspection products using activity-based costing (Round per unit answers to 2 Gauges
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 6E: Foamy Inc. manufactures shaving cream and uses the weighted average cost method. In November,...
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