Chapter 8 966 15. Uratex Company manufactures a variety of classroom chairs. Its job- costing system uses an activity-based approach. There are two di- rect-cost categories (direct materials and direct labor) and three in- direct cost pools. The cost pools represent three activity areas at the plant. Cost Driver used Cost-allocation Manufacturing Activity Area Budgeted Cost for 2016 as Allocation Base Rate Parts P 0.25 Materials Handling Cutting Assembly P 200,000 2,000,000 2,000,000 Parts 2.50 Direct labor hours 25,000. Two styles of chairs were produced in March, the high school chair, and the college chair. Their quantities, direct material costs, and other data for March 2018 are as follows: Direct Direct Units Materials pəɔnpold Costs Number Manufacturing of Parts Labor hours High school chair College chair 000n000 000 0 0i00 00, 000 0 3,500 The direct labor rate is P20 per hour. Assume no beginning or end- ing inventory. What are the unit cost of the high school chair and the college chair? P240.50 and P571.75 respectively P242.50 and P570.25 respectively 6. C. P252.50 and P571.25 respectively P242.50 and P571.25 respectively

Chapter 8 966 15. Uratex Company manufactures a variety of classroom chairs. Its job- costing system uses an activity-based approach. There are two di- rect-cost categories (direct materials and direct labor) and three in- direct cost pools. The cost pools represent three activity areas at the plant. Cost Driver used Cost-allocation Manufacturing Activity Area Budgeted Cost for 2016 as Allocation Base Rate Parts P 0.25 Materials Handling Cutting Assembly P 200,000 2,000,000 2,000,000 Parts 2.50 Direct labor hours 25,000. Two styles of chairs were produced in March, the high school chair, and the college chair. Their quantities, direct material costs, and other data for March 2018 are as follows: Direct Direct Units Materials pəɔnpold Costs Number Manufacturing of Parts Labor hours High school chair College chair 000n000 000 0 0i00 00, 000 0 3,500 The direct labor rate is P20 per hour. Assume no beginning or end- ing inventory. What are the unit cost of the high school chair and the college chair? P240.50 and P571.75 respectively P242.50 and P570.25 respectively 6. C. P252.50 and P571.25 respectively P242.50 and P571.25 respectively

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 18E: For E2-17, prepare any journal entries that would have been different if the only trigger points had...

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Geneva, Inc., makes two products, X and Y, that require allocation of indirect manufacturing costs. The following data were compiled by the accountants before making any allocations: The total cost of purchasing and receiving parts used in manufacturing is 60,000. The company uses a job-costing system with a single indirect cost rate. Under this system, allocated costs were 48,000 and 12,000 for X and Y, respectively. If an activity-based system is used, what would be the allocated costs for each product?
Bewig, Inc., manufactures and sells two products: Product E8 and Product R4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product E8 Product R4 Total Labour-related DLHs $201,717 4,800 4,500 9,300 Machine setups setups 69,020 400 300 700 General factory MHs 140,553 3,300 3,000 6,300 $411,290 Bewig produces 10,000 of E8 and 15,000 of R4 annually. The overhead applied to each unit of Product E8 under activity-based costing is closest to: Question 11 options: 1) $3.94 2) $19.41 3) $41.13 4) $21.72
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Churchill Products is considering updating its cost system to an activity-based costing system and is interested in understanding the effects. The company’s cost accountant has identified three overhead cost pools along with appropriate cost drivers for each pool. Cost Pools Costs Activity Drivers Utilities $ 315,000 63,000 machine-hours Scheduling and setup 300,000 600 setups Material handling 795,000 1,590,000 pounds of material The company manufactures three models of water basins (Oval, Round, and Square). The plans for production for the next year and the budgeted direct costs and activity by product line are as follows. Products Oval Round Square Total direct costs (material and labor) $ 80,000 $ 70,000 $ 80,000 Total…
Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product Z9 Product N0 Total Labor-related DLHs $ 327,018 6,700 3,300 10,000 Product testing tests 47,247 550 650 1,200 Order size MHs 472,608 4,300 4,600 8,900 $ 846,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: Multiple Choice A. $72.69 per DLH B. $705.73 per DLH C. $85.90 per DLH D. $32.70 per DLH
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product Z1 Product Z8 Total Labor-related DLHs $ 112,190 600 2,000 2,600 Machine setups setups 40,440 500 700 1,200 Order size MHs 609,770 3,000 3,200 6,200 $ 762,400 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Choice $56.10 per MH $293.23 per MH $76.24 per MH $98.35 per MH
St. Vincent’s, Inc., currently uses traditional costing procedures, applying $993,600 of overhead to products Beta and Zeta on the basis of direct labor hours. The company is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH), production setups (SU), and number of parts components (PC) as cost drivers. Data on the cost pools and respective driver volumes follow. Product Pool No.1 (Driver: DLH) Pool No. 2 (Driver: SU) Pool No. 3 (Driver: PC) Beta 2,100 35 2,750 Zeta 3,300 60 770 Pool Cost $ 270,000 $ 266,000 $ 457,600 What would the overhead cost allocated to Beta by using traditional costing procedures be?
The current cost accounting system charges overhead to products based on machine-hours. What unit product costs will be reported for the two products if the current cost system continues to be used? (Round intermediate calculations and "Per unit cost" answers to 2 decimal places.) 308 510 Total cost Per unit cost A consulting firm has recommended using an activity-based costing system, with the activities based on the cost pools identified by the cost accountant. What are the cost driver rates for the four cost pools identified by the cost accountant? (Round your answers to 2 decimal places.) Incoming inspection % of material dollars Production per machine-hour Machine setup per setup Shipping per unit What unit product costs will be reported for the two products if the ABC system suggested by the cost accountant’s classification of…
Computing and using activity-based costing overhead allocation rates Koehler (see Exercise E19-15 and Exercise E19-16) makes handheld calculators in two models—basic and professional—and wants to further refine its costing system by allocating overhead using activity-based costing. The estimated $721,000 of manufacturing overhead has been divided into three primary activities: Materials Handling, Machine Setup, and Insertion of Parts. The following data have been compiled: Requirement 1 Koehler expects to produce 200,000 basic models and 200,000 professional models. Compute the predetermined overhead allocation rates using activity-based costing. How much overhead is allocated to the basic model? To the professional model? Requirement 2 Compare your answers for Exercise E19-15, Exercise E19-16, and Exercise E19-17. What conclusions can you draw? Note: Short Exercise S19-15 and ES19-16 must be completed before attempting Short Exercise 519-17.
Newtown Inc., manufactures and sells two products: Product U5 and Product X2. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product U5 Product X2 Total Labour-related DLHs $36,180 2,400 1,200 3,600 Product testing tests 65,760 400 600 1,000 General factory MHs 133,984 4,000 3,900 7,900 $235,924 The total overhead applied to Product X2 under activity-based costing is closest to: a. $157,272 b. $141,555 c. $117,660 d. $67,839
Angara Corporation uses activity - based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity - based costing system: Activity Cost Pool (and Activity Measure) Total Cost Machine related (machine - hours) $ 168, 300 Batch setup (setups) $ 721, 600 Order size (direct labor - hours) $ 138, 000 Activity Cost Pools Total Activity Product X Product Y Total Machine related 1,800 9,200 11,000 Batch setup 4,100 6, 900 11,000 Order size 7, 000 5,000 12,000 The total amount of overhead cost allocated to Product X would be closest to: Note: Do not round your intermediate calculations. Multiple Choice $ 377,000 $721,600 $349, 460 $650, 900
All applicable Problems are available with McGraw-Hill’s Connect™Accounting. Activity-based costing MedTech, Inc., manufactures and sells diagnostic equipment used in the medical profession. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning four manufacturing overhead cost drivers (activities). Assume that the direct labor rate is $25 per hour and thatthere were no beginning inventories. The following information was available for 2013, based on an expected production level of 100,000 units for the year:Activity Budgeted Cost Driver Used Cost(Cost Driver) Costs for 2013 as Allocation Base Allocation RateMaterials handling $1,200,000 Number of parts used $ 2.00 per partMilling and grinding 2,200,000 Number of machine hours 11.00 per hourAssembly and inspection 1,500,000 Direct labor hours worked 5.00 per hour Testing 300,000 Number of units tested 3.00 per…
Desjarlais Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Activity Rate Setting up batches $ 83.25 per batch Assembling products $ 13.88 per assembly hour Processing customer orders $ 61.41 per customer order Data concerning two products appear below: Product S96U Product Q06F Number of batches 33 45 Number of assembly hours 104 844 Number of customer orders 16 33 Required: a. How much overhead cost would be assigned to Product S96U using the company's activity-based costing system? (Round your intermediate calculations and final answer to 2 decimal places.) b. How much overhead cost would be assigned to Product Q06F using the company's activity-based costing system? (Round your intermediate calculations and final answer to 2 decimal places.)