The direct labour rate is RM1.50 per hour and the direct materials cost is RM1.20 per kg.The production manager and the cost supervisor have arrived at the following cost driverbasis:Cost driverCost poolsMachiningSet-up costsPackagingInspectionMachine hoursDirect materials (kg)Number of units producedNumber of units producedRequired:a) Using the ABC approach, calculate the production cost per unit.b) Using traditional costing approach, compare the cost per unit for each of the products.C) Why is there a difference between the traditional and ABC approach of calculating thetotal cost per unit? Question 6Alien is the cost supervisor at the production department for a bakery chain store calledLofa Bakery in Alor Setar. This bakery produces three types of products, namelycupcakes, doughnuts and curry puffs. The following information rates to the bakeryoperations for the year ending 31 December 2020.The total production costs are given below:RMCost poolsMachiningSet-up costsPackagingInspection8,0005,5004,2002,800Direct materials750 kg100 kg50 kgOutput (units)MachineDirect labour50050 hours150 hoursCupcakesDoughnutsCurry puffs30060 hours60 hours20080 hours40 hours

Name: The direct labour rate is RM1.50 per hour and the direct materials co
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: The direct labour rate is RM1.50 per hour and the direct materials cost is RM1.20 per kg.The production manager and the cost supervisor have arrived at the following cost driverbasis:Cost driverCost poolsMachiningSet-up costsPackagingInspectionMachi

Activity based costing is the method of allocation of indirect costs to the cost of product. The…

Business

Accounting

Alien is the cost supervisor at the production department for a bakery chain store called Lofa Bakery in Alor Setar. This bakery produces three types of products, namely cupcakes, doughnuts and curry puffs. The following information rates to the bakery operations for the year ending 31 December 2020. The total production costs are given below: Cost pools Machining Set-up costs Packaging Inspection RM 8,000 5,500 4,200 2,800 Output (units) 500 Machine Direct materials Direct labour 750 kg 100 kg 50 kg 150 hours Cupcakes Doughnuts Curry puffs 50 hours 60 hours 80 hours 60 hours 40 hours 300 200

Alien is the cost supervisor at the production department for a bakery chain store called Lofa Bakery in Alor Setar. This bakery produces three types of products, namely cupcakes, doughnuts and curry puffs. The following information rates to the bakery operations for the year ending 31 December 2020. The total production costs are given below: Cost pools Machining Set-up costs Packaging Inspection RM 8,000 5,500 4,200 2,800 Output (units) 500 Machine Direct materials Direct labour 750 kg 100 kg 50 kg 150 hours Cupcakes Doughnuts Curry puffs 50 hours 60 hours 80 hours 60 hours 40 hours 300 200

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 64E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...

See similar textbooks

Similar questions

Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of household cleaning products. Palladiums controller has developed standard costs for the following four overhead items: Next year, Palladium expects production to require 90,000 direct labor hours. Exercise 9-64 Performance Report Based on Actual Production Refer to the information for Palladium Inc. above. Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows: Required: Prepare a performance report for the period based on actual production.
Use the following information for Brief Exercises 4-27 and 4-28: Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to Quillen: Brief Exercises 4-27 (Appendix 4B) Assigning Support Department Costs by Using the Direct Method Refer to the information for Quillen Company above. Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratiosone for Cutting and the other for Sewing.) 2. Allocate the support department costs to the producing departments by using the direct method.
Yo-Down Inc. produces yogurt. Information related to the companys yogurt production follows: Support Department 1s costs total 142,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1 that should be allocated to each production department.
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Last question 4) The company uses normal costing with two direct-cost categories: Direct materials Direct manufacturing labor Furthermore, the company uses two manufacturing overhead cost pools: Machining department with machine- hours as the allocation base Assembly department with direct manufacturing labor costs as the allocation base. The budget for the plant in 2020 is as follows: Production plant Machine department Assembly department Manufacturing overhead costs 13 597 500 12 271 500 Direct manufacturing labor costs 1 455 000 6 075 000 Direct manufacturing labor-hours 54 000 22 500 Machine-hours 277 500 55 500 What is the budgeted manufacturing overhead rate in the machining and the assembly department? Overhead is the direct cost involved in the production process of the business of the company Calculation of budgeted manufacturing overhead rate in machine department: Budgeted manufacturing…
Problem 1. Mahinahon Company would like to institute an activity-based costing system to price products. The company's Purchasing Department incurs costs of P550,000 per year and has six employees. Purchasing has determined the three major activities that occur during the year. Activity Allocation Measure # of People Total Cost Issuing purchase orders # of purchase orders 1 P285,000 Reviewing receiving reports # of receiving reports 2 P190,000 Making phone calls # of phone calls 3 P220,000 During the year, 50,000 phone calls were made in the department; 15,000 purchase orders were issued; and 10,000 shipments were received. Product A required 200 phone calls, 150 receiving reports, and 50 purchase orders. Product B required 350 phone calls, 400 receiving reports, and 100 purchase orders. 1Determine the amount of purchasing department cost that should be assigned to each of these products. 1.2. Determine purchasing department cost per…
Koena’s Kitchenware (Pty) Ltd (“Koena’s”) manufactures and sells a variety of kitchen utensils anduses a traditional absorption costing system. You have the following information available regardingKoena’s fixed manufacturing overheads for the 2019 and 2020 financial years. Financial year 2019 2020Budgeted Actual Budgeted ActualFixed manufacturingoverheads (FMO)R7 200 000 R7 000 000 R7 332 850 R7 500 000Direct labour hours 900 000 906 500 894 250 941 200Manufacturing units 360 000 370 000 365 000 362 000Koena’s allocates FMO based on direct labour hours.QUESTION 9The predetermined FMO allocation rate for the 2019 financial year was (rounded to two decimalplaces).(1) R20,00.(2) R8,00.(3) R8,20.(4) R7,72.QUESTION 10The over-/under allocated FMO for the 2020 financial year is.(1) R217 840 over applied.(2) R217 840 under applied.(3) R167 150 over applied.
Cornerstones of Cost Management 4th Ed. - Chapter 4 Scenario IV: Goodmark Company produces two types of birthday cards: scented and regular. Expected product data for the coming year are given below. Overhead costs are identified by activity. Scented Cards Regular Cards Total Units produced 20,000 200,000 - Prime costs $160,000 $1,500,000 $1,660,000 Direct labor hours 20,000 160,000 180,000 Number of setups 60 40 100 Machine hours 10,000 80,000 90,000 Inspection hours 2,000 16,000 18,000 Number of moves 180 120 300 Overhead costs: Setting up equipment $240,000 Moving materials 120,000 Machining 200,000 Inspecting products 160,000 Required: 1. Answer the following questions: a. Calculate the activity consumption ratios for Scented cards (round to two decimal places). Setups: Moving materials: Machining: Inspection: b. If only one rate based on direct labor hours were used to assign overhead, Scented Cards would receive…
The controller of Ferrence Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below: The total materials handling cost for the year is expected to be $16,486.40. If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost should be allocated to the specialty windows? (Round off your answer to the nearest whole dollar.) Question 12 options: $3,266 $9,274 $8,243 $6,595
Cornerstones of Cost Management 4th Ed - Chapter 4 Scenario III: Goodmark Company produces two types of birthday cards: scented and regular. During the year, 20,000 scented cards and 200,000 regular cards were produced. Goodmark has two production departments: Cutting and Printing. Direct labor hours are used to assign the overhead of Cutting and machine hours are used for Printing. The data for the two producing departments are given below: Cutting Printing Total Direct labor hours: Scented 10,000 10,000 20,000 Regular 150,000 10,000 160,000 Total 160,000 20,000 180,000 Machine hours: Scented 2,000 8,000 10,000 Regular 8,000 72,000 80,000 10,000 80,000 90,000 Overhead costs $216,000 $504,000 $720,000 Required: 1. Calculate the overhead rates for each department (round to the nearest cent): Cutting: per direct labor hour Printing: per machine hour 2. Calculate the overhead cost per unit…
Required:1. Calculate the monthly requirement for machine hours and direct labor hours for producingProducts 401, 402, and 403 to determine whether or not the factory can meet the monthlysales demand.2. Determine the quantities of 401, 402, and 403 that should be produced monthly to maximizeprofits. Prepare a schedule that shows the contribution to profits of your product mix. 3. Assume that the machine hours available in Department 3 are 1,500 instead of 2,700. Calculate the optimal monthly product mix using the graphing approach to linear programming. Prepare a schedule that shows the contribution to profits from this optimal mix. (CMAadapted)
Please help with the question number 4,5, and 6. Thank you Gigabyte, Inc. manufactures three products for the computer industry: Gismos (product G): annual sales, 8,000 units Thingamajigs (product T): annual sales, 15,000 units Whatchamacallits (product W): annual sales, 4,000 units The company uses a traditional, volume-based product-costing system with manufacturing over-head applied on the basis of direct-labor dollars. The product costs have been computed as follows: Product G Product T Product W Raw material ..........................$ 35.00 $52.50 $17.50 Direct labor 16(.8 hr.at $20) 12(.6 hr at $20) 8(.4 hr at $20) Manufacturing overhead* ......140.00 105.00 70.00 Total product cost ..................$191.00 $169.50 $95.50 *Calculation of predetermined overhead rate: Manufacturing overhead budget: Machine…