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3. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $420,000 and $294,000 for th Subassembly and Final Assembly departments, respectively. Department Subassembly Department 300✓ per direct labor hour 210 ✓ per direct labor hour Final Assembly Department 4. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (3). Round per unit amounts to the nearest whole cent. Product Total Factory Overhead Factory Overhead Per Unit Receivers 372,750 ✓ 53.25 ✔ 48.75 Loudspeakers $341,250 ✓ 5. Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments. Round per unit amounts to the nearest whole cent. Activity Activity Rate Setup 346.5 Quality Control 119 142 ✔ per direct labor hour 82 per direct labor hour Subassembly Department Final Assembly Department Production Department Rate Product Receivers Loudspeakers per setup per inspection. 6. Determine the total and per-unit cost assigned to each product under activity-based costing. Round the per unit amounts to the nearest whole cent. Total Activity Cost Activity Cost Per Unit

3. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $420,000 and $294,000 for th Subassembly and Final Assembly departments, respectively. Department Subassembly Department 300✓ per direct labor hour 210 ✓ per direct labor hour Final Assembly Department 4. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (3). Round per unit amounts to the nearest whole cent. Product Total Factory Overhead Factory Overhead Per Unit Receivers 372,750 ✓ 53.25 ✔ 48.75 Loudspeakers $341,250 ✓ 5. Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments. Round per unit amounts to the nearest whole cent. Activity Activity Rate Setup 346.5 Quality Control 119 142 ✔ per direct labor hour 82 per direct labor hour Subassembly Department Final Assembly Department Production Department Rate Product Receivers Loudspeakers per setup per inspection. 6. Determine the total and per-unit cost assigned to each product under activity-based costing. Round the per unit amounts to the nearest whole cent. Total Activity Cost Activity Cost Per Unit

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3PA: Activity-based and department rate product costing and product cost distortions Black and Blue...
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3. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $420,000 and $294,000 for the Subassembly and Final Assembly departments, respectively. Department Subassembly Department 300✔ per direct labor hour 210 ✓ per direct labor hour Final Assembly Department 4. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (3). Round per unit amounts to the nearest whole cent. Product Total Factory Overhead Factory Overhead Per Unit Receivers $ 372,750 ✓ $ 53.25 ✔ Loudspeakers $ 341,250 ✓ $ 48.75 5. Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments. Round per unit amounts to the nearest whole cent. Activity Activity Rate Setup Quality Control Production Department Rate $ 346.5 ✔ per setup 119 ✔ per inspection Subassembly Department 142 ✔ per direct labor hour Final Assembly Department 82✔ per direct labor hour 6. Determine the total and per-unit cost assigned to each product under activity-based costing. Round the per unit amounts to the nearest whole cent. Activity Cost Per Unit Total Activity Cost Product Receivers Loudspeakers $ $
Transcribed Image Text:3. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $420,000 and $294,000 for the Subassembly and Final Assembly departments, respectively. Department Subassembly Department 300✔ per direct labor hour 210 ✓ per direct labor hour Final Assembly Department 4. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (3). Round per unit amounts to the nearest whole cent. Product Total Factory Overhead Factory Overhead Per Unit Receivers $ 372,750 ✓ $ 53.25 ✔ Loudspeakers $ 341,250 ✓ $ 48.75 5. Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments. Round per unit amounts to the nearest whole cent. Activity Activity Rate Setup Quality Control Production Department Rate $ 346.5 ✔ per setup 119 ✔ per inspection Subassembly Department 142 ✔ per direct labor hour Final Assembly Department 82✔ per direct labor hour 6. Determine the total and per-unit cost assigned to each product under activity-based costing. Round the per unit amounts to the nearest whole cent. Activity Cost Per Unit Total Activity Cost Product Receivers Loudspeakers $ $
Final Assembly Department Total The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows: Activity Setup Quality control Total Budgeted Activity Cost Receivers Loudspeakers Total 114,800 $714,000 $138,600 Number of setups 261,800 Number of inspections $400,400 The activity-base usage quantities and units produced for the two products follow: Activity Base Number of Number of Setups Inspections 80 320 400 450 1,750 2,200 Direct Labor Hours- Subassembly 875 525 1,400 Direct Labor Hours-Final Units Assembly Produced 525 875 1,400 Required: 1. Determine a plantwide overhead rate tsed upon direct labor hours. Direct labor overhead rate: per direct labor hour $ 7,000 7,000 14,000 2. Determine the total and per-unit factory overhead costs allocated to each product, using the plantwide overhead rate in (1). Round per unit amounts to the nearest whole cent. Total Factory Overhead Factory Overhead Per Unit Product Receivers Loudspeakers 3. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $420,000 and $294,000 for the
Transcribed Image Text:Final Assembly Department Total The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows: Activity Setup Quality control Total Budgeted Activity Cost Receivers Loudspeakers Total 114,800 $714,000 $138,600 Number of setups 261,800 Number of inspections $400,400 The activity-base usage quantities and units produced for the two products follow: Activity Base Number of Number of Setups Inspections 80 320 400 450 1,750 2,200 Direct Labor Hours- Subassembly 875 525 1,400 Direct Labor Hours-Final Units Assembly Produced 525 875 1,400 Required: 1. Determine a plantwide overhead rate tsed upon direct labor hours. Direct labor overhead rate: per direct labor hour $ 7,000 7,000 14,000 2. Determine the total and per-unit factory overhead costs allocated to each product, using the plantwide overhead rate in (1). Round per unit amounts to the nearest whole cent. Total Factory Overhead Factory Overhead Per Unit Product Receivers Loudspeakers 3. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $420,000 and $294,000 for the
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