A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $55,174 and the cost drivers for Product 1 is 395 and 346 for Product 2. The assembling activity pool has estimated costs of $40,186 and the cost drivers for Product 1 is 347 and 128 for Product 2. Direct labor hours for Product 1 is 50,000 and 45,000 for Product 2. What is the manufacturing overhead rate to be used under activity based costing for the assembly pool?

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: Manufacturing overhead cost - it is the total indirect cost incurred during the manufacturing of a…

Q: Nixon Machine Parts Inc.'s Fabrication Department incurred $132,500 of factory overhead cost in…

A: Solution:  The above question is related to overhead allocation. In our case we are supposed to…

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: In the traditional cost method, the manufacturing overhead cost is distributed on the basis of…

Q: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin…

A: Workings:

Q: company has two production Cost centers and two service cost centers. The following details have…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: Activity rate = Estimated cost / Estimated activity

Q: ngs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25…

A: In this question, we have to find out the unit cost to manufacture each unit

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: Manufacturing cost for finishing activity per cost driver = 110,205/(326+493)               = 134.56

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: rek Company has the following production data for April: units transferred out 41,400, and ending…

A: Definition: Conversion costs are the sum of direct labor costs and overhead costs. Conversion Cost…

Q: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin…

A: Activity base costing is used to allocate the manufacturing overhead on the basis of activity rate.…

Q: Valencia Company manufactures two products. Product A has 800 units produced, require 200 material…

A: Cost allocated to A = P2,000,000 x 200/1000 = P400,000 Coat allocated to B = P2,000,000 x 800/1000 =…

Q: Morgana Company identifies three activities in its manufacturing process: machine setups, machining,…

A: Overhead rate per activity = Estimated annual overhead cost for activity / No. of activity

Q: Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and…

A: Calculation of Manufacturing cost per unit of Product A and Product B   (per unit)  Product A…

Q: The overhead cost per unit of Product B under the traditional costing system is closest to: $50.66…

A:

Q: he Oliver Company manufactures products in two​ departments: Mixing and Packaging. The company was…

A: Estimated overhead costs/Estimated allocation base = Predetermined OH allocation rate Predetermined…

Q: 0 units. The company has traditionally used direct labor-hours as the basis for applying all…

A: Activity based costing is the costing in which overheads cost are allocated to a product based on…

Q: Kula Company Ltd manufactures two products, Flora and Fauna. Estimates for the company’s products…

A: GIVEN      Estimated activity levels for the next year are as follows:   Flora Fauna Total…

Q: Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are…

A: Activity-based costing is a method of costing that identifies activities in business that incurs…

Q: Lyon Productions manufactures two products, Chevalier and Dame. Estimates for the company’s products…

A: Under Activity based costing, overhead costs are allocated to products on the basis of cost drivers…

Q: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin…

A: Manufacturing cost means the cost of producing the goods in a factory or manufacturing unit. It can…

Q: A company manufactures a product with three models, each with different direct material costs and…

A: Activity based costing means where the product is valued on the basis of actual direct material ,…

Q: Greenwood Company manufactures two products–14,000 units of Product Y and 6,000 units of Product Z.…

A: Common fixed expenses are total overhead expenses that are incurred to the company and to be…

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: The standard amount of factory overhead cost assigned to each unit of production is known as the…

Q: Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and…

A: The indirect costs include the factory overhead costs incurred into the production process.  The…

Q: Walnut Systems produces two different products, Product A, which sells for $127 per unit, and…

A: >There are various methods to allocate the overhead support costs that are not directly related…

Q: Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Addy Company has two products: A and B. The annual production and sales of Product A is 1,700 units…

A: Labor hoursProduct A=Total units×Labor hour per unit=1,700×0.3=510

Q: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin…

A: Total cost of jobs refers to the cost of all jobs involved.

Q: Greenwood Company manufactures two products-15,000 units of Product Y and 1,000 uses a plantwide…

A: Total Direct labor hours=Product Y+Product Z=8,700+1,300=10,000

Q: Green Co. uses 6 machine hours and 2 direct labor hours to produce Product A. It uses 8 machine…

A: Solution:- Computation of total factory overhead cost for two products are as follows under:-…

Q: It takes 100,000 direct labor hours to manufacture the product. Total overhead for the product is…

A: Introduction: Traditional costing refers to the allocation of factory overhead to products based on…

Q: Corsair uses an activity-based system and classifies overhead into three activity pools: Setup,…

A: Part D) Direct Manufacturing Labour Budget: First, we need to calculate the Number of Production…

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: Solution: Total estimated overhead costs = $85,557 + $67,616 = $153,173 Budgeted direct labor hours…

Q: Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine…

A: The overhead cost is applied to the production using the predetermined overhead rate.

Q: Compute for the total Factory overhead cost of Department H if the company uses the direct method…

A: U V W H G Total overhead costs 332000 254000 188000 1275000 1810000…

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: Under the traditional costing method for allocation, the manufacturing overhead cost is allocated…

Q: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin…

A: Job costing is a way of accounting that allows you to keep a record of the costs of different tasks…

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: Total Direct labor hours = 335 + 224 = 559 hours   Total estimated manufacturing costs =…

Q: Walnut Systems produces two different products, Product A, which sells for $127 per unit, and…

A: >There are various methods to allocate the overhead support costs that are not directly related…

Q: Acton Company has two products: A and B. The annual production and sales of Product A is 800 units…

A: Overhead expenses allude to all circuitous costs of maintaining a business. These continuous costs…

Q: Greenwood Company manufactures two products–14,000 units of Product Y and 6,000 units of Product Z.…

A: Overheads are considered as fixed and common expenses that should be allocated to the products on…

Q: Addy Company has two products: A and B. The annual production and sales of Product A is 1,700 units…

A: The formula to calculate predetermined overhead rate  under the activity-based costing system is…

Q: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin…

A: Unit Costing - It is a costing technique adopted by those manufacturing concerns which manufacture…

Q: If the company uses the direct method of service department cost distribution, how much will the…

A: Overhead means the cost incurred indirect in factory for the production of goods. Overhead cost will…

Q: Green Co. uses 6 machine hours and 2 direct labor hours to produce Product A. It uses 8 machine…

A: Total factory overhead allocated to a unit = (No. of machine hour x Assembly department factory…

Q: Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z.…

A: The activity rate is calculated as total estimated manufacturing overhead cost for activity divided…

Q: Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z.…

A: Overhead rate is the total of all indirect costs or expenses which are then divided by the activity…

Q: ISQUID Corp. has provided the following data from its activity-based costing system: Activity Cost…

A: Under activity based costing, the overhead is allocated to production based on various activities.

Q: Morgana Company identifies three activities in its manufacturing process: machine setups, machining,…

A: Overheads are considered as fixed and common expenses that should be allocated to the products on…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.