Plz give correct answer 2. Tyler Case, the company's CEO, recently returned from a seminar on activity-based costing and instructed Kalagnanam to considerImplementing the new system. As a first step, he instructed her to analyze the overhead costs for 2021. Through her research she wasable to derive the following breakdown of the estimated overhead costs for 2021ActivityVolumeActivityFoundation layingBuilding constructionPaint ingFinishingAmount$ 1,830,5001,740, 0001,892,0002,437,500Activity MeasureFoundation-laying hoursConstruction labour-hoursPainting-hoursFinishing-hours425,700500,000550,000750, 000She also documented the following activity on the three jobs during the first quarter of 2021 (in addition to the construction labour-hours consumed by the three jobs)Foundat ion-laying hoursPainting-hoursFinishing-hoursSchfool Residential39, 55049, 38041,46038,50036, 12060,600Cinena44,25047,66094,000a. Calculate the activity rates for each of the four activities (Round your answers to 2 decimal places.)Answer is complete and correct.Activity RateperFLHperCLH3.44 O per PHActivityFoundation laying4 30Building construction3 48PaintingFinishing3 25 O per FH b. Calculate the total cost of each job using activity-based costing (Do not round intermediate calculations and round your finalanswers nearest to whole number.)Answer is complete but not entirely correct.SchoolResidentialCinemaTotal cost474,677 OS486,752659,725

Activity based costing assigns the cost of each activity to all product and services Activity based…

b. Calculate the total cost of each job using activity-based costing. (Do not round intermediate calculations and round answers nearest to whole number.) Answer is complete but not entirely correct. School Residential Cinema Total cost 474,677 486,752 659,725

b. Calculate the total cost of each job using activity-based costing. (Do not round intermediate calculations and round answers nearest to whole number.) Answer is complete but not entirely correct. School Residential Cinema Total cost 474,677 486,752 659,725

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter15: Lean Accounting And Productivity Measurement

Section: Chapter Questions

Problem 3CE: In 20x2, Choctaw Company implements a new process affecting labor and materials. The following...

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In 20x2, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the companys productivity: Required: 1. Calculate the productivity profile for 20x1. 2. Calculate the productivity profile for 20x2, and comment on the effect of the new production and assembly process. 3. What if the labor hours used in 20x2 were 112,500? What does comparison of the 20x1 and 20x2 profiles now communicate?
When setting its predetermined overhead application race, Tasty Box Meals estimated its overhead would be $100,000 and would require 25,000 machine hours in the next year. At the end of the year. It found that actual overhead was $102,000 and required 26,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under applied or over applied overhead.
Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: FabricationDepartment FinishingDepartment Cost Driver Maintenance $ 30,000 15,000 Machine hours Materials handling 45,000 22,500 Material moves Machine 105,000 7,500 Machine setups Inspections - 37,500 Inspection hours Total $180,000 $82,500 The following activity predictions were also made for the year: FabricationDepartment FinishingDepartment Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25 Inspection hours - 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…
Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: FabricationDepartment FinishingDepartment Cost Driver Maintenance $ 36,000 18,000 Machine hours Materials handling 54,000 27,000 Material moves Machine 126,000 9,000 Machine setups Inspections - 45,000 Inspection hours Total $ 216,000 $ 99,000 The following activity predictions were also made for the year: FabricationDepartment FinishingDepartment Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25 Inspection hours - 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…
The management of Wy Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base ismachine-hours and the estimated amount of the allocation base for the upcoming year is 50,000 machine-hours. In addition, capacity is 59,000 machine-hours and the actual level of activity for the year is 53,300 machine-hours. All of the manufacturing overhead is fixed and is P1,622,500 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year. A number of products were worked on during the year, one of which was Product X. This product required 230 machine-hours. 21. If the company bases its predetermined overhead rate on the…
The management of Wy Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base ismachine-hours and the estimated amount of the allocation base for the upcoming year is 50,000 machine-hours. In addition, capacity is 59,000 machine-hours and the actual level of activity for the year is 53,300 machine-hours. All of the manufacturing overhead is fixed and is P1,622,500 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year. A number of products were worked on during the year, one of which was Product X. This product required 230 machine-hours. 20. If the company bases its predetermined overhead rate on the…
The management of Wy Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base ismachine-hours and the estimated amount of the allocation base for the upcoming year is 50,000 machine-hours. In addition, capacity is 59,000 machine-hours and the actual level of activity for the year is 53,300 machine-hours. All of the manufacturing overhead is fixed and is P1,622,500 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year. A number of products were worked on during the year, one of which was Product X. This product required 230 machine-hours. 22. If the company bases its predetermined overhead rate on the…
NOT GRADED PLEASE provide details on calculations so I understand Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: FabricationDepartment FinishingDepartment Cost Driver Maintenance $ 42,000 21,000 Machine hours Materials handling 63,000 31,500 Material moves Machine 147,000 10,500 Machine setups Inspections - 52,500 Inspection hours Total $ 252,000 $ 115,500 The following activity predictions were also made for the year: FabricationDepartment FinishingDepartment Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25 Inspection hours - 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…
Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: FabricationDepartment FinishingDepartment Cost Driver Maintenance $ 84,000 42,000 Machine hours Materials handling 126,000 63,000 Material moves Machine 294,000 21,000 Machine setups Inspections - 105,000 Inspection hours Total $ 504,000 $ 231,000 The following activity predictions were also made for the year: FabricationDepartment FinishingDepartment Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25 Inspection hours - 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…
The management of Shatner Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called CISCO, is a component of the company’s finished product.The following information was collected from the accounting records and production data for the year ending December 31, 2020.1. 8,000 units of CISCO were produced in the Machining Department.2. Variable manufacturing costs applicable to the production of each CISCO unit were: direct materials $5.23, direct labor $4.71, indirect labor $0.48, utilities $0.39.3. Fixed manufacturing costs applicable to the production of CISCO were: Cost Item Direct Allocated Depreciation $2,100 $960 Property taxes 500 370 Insurance 910 650 $3,510 $1,980 All variable manufacturing and direct fixed costs will be eliminated if CISCO is purchased. Allocated costs will not be eliminated if CISCO is purchased. So if CISCO is purchased,…
Bianca Company incurred the following costs during 2021:- Testing in search for process alternative = 230,000- Adaptation of an existing capability to a particular requirement or customer's need = 140,000- Design, construction, and testing of pre-production prototypes and models = 120,000- Routine design of tools, jigs, molds, and dies = 125,000 Required:How much is the research and development expense in 2021?
Thornton Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs Home 1 Home 2 Home 3 Direct labor $ 66,000 $ 100,000 $ 178,000 Direct materials 109,000 139,000 181,000 Assume Thornton needs to allocate two major overhead costs ($51,600 of employee fringe benefits and $30,030 of indirect materials costs) among the three jobs.RequiredChoose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. (Round "Allocation rate" to 2 decimal places.)