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Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Materials handling Total G-09 19,300 Required: $7 4 144 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: a. Overhead rate b. Machine depreciation $ 104,220 52,110 41,688 $ 198,018 G-35 3,860 $19 Exercise 9-36 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4) 7 72 a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. per machine hour per machine hour Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling per machine hour per machine hour per production run % direct material cost

Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Materials handling Total G-09 19,300 Required: $7 4 144 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: a. Overhead rate b. Machine depreciation $ 104,220 52,110 41,688 $ 198,018 G-35 3,860 $19 Exercise 9-36 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4) 7 72 a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. per machine hour per machine hour Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling per machine hour per machine hour per production run % direct material cost

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
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 10E: Costs per equivalent unit Georgia Products Inc. completed and transferred 89,000 particle board...
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Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Materials handling Total G-09 19,300 Required: $7 4 144 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: a. Overhead rate b. Machine depreciation $ 104,220 52,110 41,688 $ 198,018 G-35 3,860 $19 Exercise 9-36 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4) 7 72 a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. per machine hour per machine hour
Transcribed Image Text:Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Materials handling Total G-09 19,300 Required: $7 4 144 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: a. Overhead rate b. Machine depreciation $ 104,220 52,110 41,688 $ 198,018 G-35 3,860 $19 Exercise 9-36 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4) 7 72 a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. per machine hour per machine hour
Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling per machine hour per machine hour per production run % direct material cost
Transcribed Image Text:Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling per machine hour per machine hour per production run % direct material cost
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