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Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for the year for the given activity cost pools: Fabrication Finishing Department Department Cost Driver $ 24,000 12,000 Machine hours 36,000 18,000 Material moves 84,000 6,000 Machine setups 30,000 Inspection hours Total $144,000 $ 66,000 The following activity predictions were also made for the year: Fabrication Finishing Department Department 5,000 2,500 1,500 750 350 25 500 It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, SW100 and SG150. The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates of activity-based rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models: Maintenance Materials handling Machine Inspections Machine hours Material moves Machine setups Inspection hours . SW100 SG150 $8,000 $12,000 Direct materials cost Direct labor cost $3,200 $2,400 Machine hours (Fabrication) 350 Machine hours (Finishing) 50 Materials moves 40 Machine setups 10 Inspection hours 15 30 a. Determine the cost of one unit each of SW100 and SG150, assuming a company-wide overhead rate is used based on total machine hours. Round rate to two decimal places. 250 100 20 5

Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for the year for the given activity cost pools: Fabrication Finishing Department Department Cost Driver $ 24,000 12,000 Machine hours 36,000 18,000 Material moves 84,000 6,000 Machine setups 30,000 Inspection hours Total $144,000 $ 66,000 The following activity predictions were also made for the year: Fabrication Finishing Department Department 5,000 2,500 1,500 750 350 25 500 It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, SW100 and SG150. The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates of activity-based rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models: Maintenance Materials handling Machine Inspections Machine hours Material moves Machine setups Inspection hours . SW100 SG150 $8,000 $12,000 Direct materials cost Direct labor cost $3,200 $2,400 Machine hours (Fabrication) 350 Machine hours (Finishing) 50 Materials moves 40 Machine setups 10 Inspection hours 15 30 a. Determine the cost of one unit each of SW100 and SG150, assuming a company-wide overhead rate is used based on total machine hours. Round rate to two decimal places. 250 100 20 5

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 3BE: Activity-based costing: factory overhead costs The total factory overhead for Bardot Marine Company...
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Can you please help me fill out the two tables, also please let me know what formulas and rules were used

Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for the year for the given activity cost pools: Fabrication Finishing Department Department Cost Driver $ 24,000 12,000 Machine hours 18,000 Material moves 36,000 84,000 6,000 Machine setups 30,000 Inspection hours Total $144,000 $ 66,000 The following activity predictions were also made for the year: Maintenance Materials handling Machine Inspections Fabrication Finishing Department Department 5,000 2,500 1,500 750 350 25 500 It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, SW100 and SG150. The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates of activity-based rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models: Machine hours Material moves Machine setups Inspection hours SW100 SG150 $8,000 $12,000 Direct materials cost Direct labor cost $3,200 $2,400 250 Machine hours (Fabrication) 350 Machine hours (Finishing) 100 50 Materials moves 20 40 Machine setups 5 10 Inspection hours 15 30 a. Determine the cost of one unit each of SW100 and SG150, assuming a company-wide overhead rate is used based on total machine hours. Round rate to two decimal places.
Transcribed Image Text:Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for the year for the given activity cost pools: Fabrication Finishing Department Department Cost Driver $ 24,000 12,000 Machine hours 18,000 Material moves 36,000 84,000 6,000 Machine setups 30,000 Inspection hours Total $144,000 $ 66,000 The following activity predictions were also made for the year: Maintenance Materials handling Machine Inspections Fabrication Finishing Department Department 5,000 2,500 1,500 750 350 25 500 It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, SW100 and SG150. The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates of activity-based rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models: Machine hours Material moves Machine setups Inspection hours SW100 SG150 $8,000 $12,000 Direct materials cost Direct labor cost $3,200 $2,400 250 Machine hours (Fabrication) 350 Machine hours (Finishing) 100 50 Materials moves 20 40 Machine setups 5 10 Inspection hours 15 30 a. Determine the cost of one unit each of SW100 and SG150, assuming a company-wide overhead rate is used based on total machine hours. Round rate to two decimal places.
Use rounded overhead rate calculated about for calculations below. Round cost answers to the nearest whole number. Round cost per unit to two decimal places. Product Costs per Unit SW100 SG150 Direct materials Direct labor 0 $ 0 Manufacturing overhead 0 Total cost per batch 0 $ Number of units per batch 0 Cost per unit $ 0 $ b. Determine the cost of one unit of SW100 and SG150, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments. Round to two decimal places, if applicable. Overhead rate based on machine hours for Fabrication Dept.: $ 0 Manufacturing overhead: Fabrication Dept. Finishing Dept. Total cost per batch $ Number of units per batch Cost per unit $ Overhead rate based on machine hours for Finishing Dept.: $ 0 Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed. Product Costs per Unit SW100 SG 150 Direct materials Direct labor $ 0 $ 0 0 0 0 $ O 0 0 0 0 0 0 $ 0 0 0 per machine hour. 0 0 0 0 0 per machine hour.
Transcribed Image Text:Use rounded overhead rate calculated about for calculations below. Round cost answers to the nearest whole number. Round cost per unit to two decimal places. Product Costs per Unit SW100 SG150 Direct materials Direct labor 0 $ 0 Manufacturing overhead 0 Total cost per batch 0 $ Number of units per batch 0 Cost per unit $ 0 $ b. Determine the cost of one unit of SW100 and SG150, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments. Round to two decimal places, if applicable. Overhead rate based on machine hours for Fabrication Dept.: $ 0 Manufacturing overhead: Fabrication Dept. Finishing Dept. Total cost per batch $ Number of units per batch Cost per unit $ Overhead rate based on machine hours for Finishing Dept.: $ 0 Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed. Product Costs per Unit SW100 SG 150 Direct materials Direct labor $ 0 $ 0 0 0 0 $ O 0 0 0 0 0 0 $ 0 0 0 per machine hour. 0 0 0 0 0 per machine hour.
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