Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining, $4800000; and assembling, $2400000. Information on the two products is: Regular Supreme 15000 10000 Direct labor hours 30000 10000 Machine hours 160000 90000 Number of parts Overhead applied to Regular using traditional costing using direct labor hours is O $2190000. O $4320000. O $2880000. O $5010000. hp

Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining, $4800000; and assembling, $2400000. Information on the two products is: Regular Supreme 15000 10000 Direct labor hours 30000 10000 Machine hours 160000 90000 Number of parts Overhead applied to Regular using traditional costing using direct labor hours is O $2190000. O $4320000. O $2880000. O $5010000. hp

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 31E: Chester Company provided information on overhead for its three producing departments as follows:...

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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
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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?
Lansing. Inc., provided the following data for its two producing departments: Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 30,000 units of Form A produced and sold and 50,000 of Form B. Required: 1. Calculate the overhead rates for each department. 2. Using departmental rates, assign overhead to live two products and calculate the overhead cost per unit. How does this compare with the plantwide rate unit cost, using direct labor hours? 3. What if the machine hours in Molding were 1,200 for Form A and 3,800 for Form B and the direct labor hours used in Polishing were 5,000 and 15,000, respectively? Calculate the overhead cost per unit for each product using departmental rates, and compare with the plantwide rate unit costs calculated in Requirement 2. What can you conclude from this outcome?
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