b. Determine the factory overhead cost per unit for each product, using activity-based costing. If required, round to the nearest cent. Speedboat Bass boat %24 %24
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A: In activity based costing, all overhead costs will be allocated on the basis of activities on the…
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A: In activity based costing, the costs are allocated based on the activity level on the relevant…
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A:
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A: Activity Based Costing It is the allocation of the factory overheads when there are various products…
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A: Under activity based costing, Activity rates are calculated for each activity cost pool using the…
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A: Calculation of overhead cost per unit of BarG &Bar S:: Particulars. BarG. Bar S..…
Q: Company X is considering switching to an activity-based costing system for computing unit product…
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…
Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…
A: Activity rate = Estimated cost / Estimated activity
Q: Dartmouth Corporation manufactures two models of office chairs, a standard and a deluxe model. The…
A: Overhead costs rate for Setups = Total Overhead costs / no. of setups = 75000/(18+32) = $1500 per…
Q: Skrunchy Company produces two products, Lower and Upper. The following two tables give pertinent…
A: Calculation of cost per unit as per traditional method is as follows: Resultant table:
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A: Process costing is used where the product is generated through multiple processes. It is mainly used…
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A: Overhead rate = Total expected costs / Total direct labor hours = ($480000 + 360000 + 840000 +…
Q: Bewig, Inc., manufactures and sells two products: Product E8 and Product R4. The company has an…
A: Activity-Based Costing: Activity-Based Costing is a method of costing which is used to assign…
Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…
A: Overheads are considered as fixed and common expenses that should be allocated to the products on…
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A: Under activity-based costing indirect overheads costs are allocated based on cost drivers consumed…
Q: Senff Corporation uses the following activity rates from its activity-based costing to assign…
A: Activity-Based Costing: Activity-based costing is a costing technique that distinguishes exercises…
Q: Abbe Company uses activity-based costing. The company has two products: A and B. The annual…
A: Overhead is a term used to describe ongoing business expenses that are not directly related to the…
Q: How do I find the fixed total overhead using absorption costing? Milton Company reports the…
A: This question deals with the calculation of total fixed overhead cost of this year. As we understand…
Q: Strama, Inc., manufactures and sells two products: Product A6 and Product 15. The company has an…
A: Activity-based costing (ABC) is a method of managerial accounting that assigns overhead expenses to…
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A: The process of recognizing, aggregating, and assigning costs to cost items is known as cost…
Q: 1. How much overhead cost would be assigned to Product J00A using the company's activity-based…
A: Activity-Based Costing An organization's activities can be identified using the activity-based…
Q: (a) Prepare an answer sheet with the following column headings. Cost Items Direct Material Direct…
A: a.
Q: X Company uses activity-based costing for its product Supreme and Exel. The total estimated annual…
A: Activity rate = RO 650,000 / 2500 set ups Activity rate = RO 260 per set up
Q: Pat Company uses activity-based costing. The company has two products: A and B. The annual…
A: Cost per unit of Product B under activity-based = Allocation of total cost to product B / No. of…
Q: Candice Company uses activity-based costing to determine the unit product costs for external…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: Four Finger Appliance used direct labor hours to allocate production department factory oVerhead LU…
A: Factory Overhead means all indirect costs incurred in production of goods. These needs to be…
Q: Senff Corporation uses the following activity rates from its activity-based costing to assign…
A: Overhead cost includes : Accounting cost Insurance cost Taxes Telephone bills Legal fees, etc.
Q: Compute for the total Factory overhead rate of G Department, if the company uses the step method in…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…
A: Traditional costing method is different from ABC costing method whereby cost driver /activity base…
Q: Following is a list of cost terms described in the chapter as well as a list of brief descriptive…
A: Cost accounting is a type of accounting that tracks all of the expenses of production, including…
Q: Silken Draperies makes custom draperies for homes and businesses. The company uses an activity-based…
A: a. The allocation of production overheads and office expenses is computed by multiplying the…
Q: a. Determine an activity rate for each activity. Activity Rates Production Setup Procurement Quality…
A: Activity based costing has become widely used method for the allocation of overhead though its…
Q: Compute for the total Factory overhead cost of Department H if the company uses the direct method…
A: U V W H G Total overhead costs 332000 254000 188000 1275000 1810000…
Q: Calculate the unit product cost using absorption costing. Round your answer to the nearest cent.…
A: The cost can be classified into two categories i.e product cost and period cost. The product cost is…
Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…
A: Total Manufacturing Overhead Rate = Total Overhead Cost / Total Direct Labor Hours
Q: The following standard costs pertain to a component part manufactured by Ashby Company: Direct…
A: Marginal costing is a costing method and it is the variable cost of one unit of a product. Marginal…
Q: Anita Corporation Berhad uses the following activity rates from its activity-based costing to assign…
A: Activity-based costing (ABC) is a method of more activities and then assigns overhead expenditures…
Q: Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently…
A: Formula: Total overhead per unit allocated to Product M = ( Total overheads / Number of units )
Q: Compute for the total Factory overhead rate of G Department, if the company uses the step method in…
A:
Q: Olmo, Inc., manufactures and sells two products: Product KO and Product H9. The annual production…
A: Activity-Based costing assigns overhead and indirect costs to products and services. we know that,…
Q: If 2,000 units are produced and only 1,400 units are sold, which of the following costing methods…
A: There are two type of costing methods that are used by the organisation. Under Absorption costing,…
Q: Sultan Company uses an activity-based costing system. At the beginning of the year, the company made…
A: Activity based costing means where the product is valued on the basis of actual direct material ,…
Q: Z Company uses activity based costing and gives you the following data regarding cost pools and…
A: The answer for the multiple choice question and relevant explanation are presented hereunder :
Q: A company which uses activity-based costing has two products: A and B. The annual production and…
A: The ABC approach is used to determine which activities require cost collection and control. Its goal…
Q: Abbe Company uses activity-based costing. The company has two products: A and B. The annual…
A: Formula: Overhead cost per unit = Total overheads / Number of units. Division of number of units…
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- Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?Overhead costs are assigned to each product based on __________________. A. the proportion of that products use of the cost driver B. a predetermined overhead rate for a single cost driver C. price of the product D. machine hours per productUse 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.
- The management of Gwinnett County Chrome Company, described in Problem 1A, now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Instructions 1. Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating Department. 2. Determine the product factory overhead costs, using the multiple production department rates in (1).Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Overhead costs: Required: 1. Calculate the four activity rates. 2. Calculate the unit costs using activity rates. Also, calculate the overhead cost per unit. 3. What if consumption ratios instead of activity rates were used to assign costs instead of activity rates? Show the cost assignment for the inspection activity.The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
- Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC: The estimated overhead for the material cost pool is estimated as $12,500, and the estimate for the machine setup pool is $35,000. Calculate the allocation rate per unit of brass and per unit of gold using: A. The traditional allocation method B. The activity-based costing method
- 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?Use the following information for Brief Exercises 4-34 and 4-35: Sanjay Company manufactures a product in a factory that has two producing departments, Assembly and Painting, and two support departments, S1 and S2. The activity driver for S1 is square footage, and the activity driver for S2 is number of machine hours. The following data pertain to Sanjay: Brief Exercises 4-34 (Appendix 4B) Assigning Support Department Costs by Using the Direct Method Refer to the information for Sanjay 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 Assembly and the other for Painting.) 2. Allocate the support department costs to the producing departments by using the direct method.Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)