Case to Solve : A company is producing 3 products A ,B and C. BOM of each product is given in the table below. Material Unit Product A Product B Product C Steel Ton 5 6 4 Aluminum KG 50 40 60 Wood CFT 10 10 Glass SFT 30 30 Rubber Sealer RFT 100 120 Screws Pack 5 6 4 Nut Bolt Dozen 2 3 2 Calculate the material requirements for 6 months production for all the products if monthly demand for A=1000, B=1200 and C=1500 units
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- ACC 307 – HW #4 – Chapters 7 and 8 The Beal Manufacturing Company’s costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing laborhours (DLH). At the beginning of 2012, Beal adopted the following standards for its manufacturing costs: Direct materials Direct manufacturing labor Manufacturing overhead: Input 3 lb. at $5 per Ib. 5 hrs. at $15 per hr. Cost per Output Unit $ 15.00 75.00 $6 per DLH $8 per DLH Variable 30.00 40.00 Fixed Standard manufacturing cost per output unit $160.00 The denominator level for total manufacturing overhead per month in 2012 is 40,000 direct manufacturing labor-hours. Beal's flexible budget for January 2012 was based on this denominator level. The records for January indicated the following: Direct materials purchased Direct materials used Direct manufacturing labor Total actual manufacturing overhead…ACC 307 – HW #4 – Chapters 7 and 8 The Beal Manufacturing Company’s costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing laborhours (DLH). At the beginning of 2012, Beal adopted the following standards for its manufacturing costs: Direct materials Direct manufacturing labor Manufacturing overhead: Input 3 lb. at $5 per Ib. 5 hrs. at $15 per hr. Cost per Output Unit $ 15.00 75.00 $6 per DLH $8 per DLH Variable 30.00 40.00 Fixed Standard manufacturing cost per output unit $160.00 The denominator level for total manufacturing overhead per month in 2012 is 40,000 direct manufacturing labor-hours. Beal's flexible budget for January 2012 was based on this denominator level. The records for January indicated the following: Direct materials purchased Direct materials used Direct manufacturing labor Total actual manufacturing overhead…ACC 307 – HW #4 – Chapters 7 and 8 The Beal Manufacturing Company’s costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing laborhours (DLH). At the beginning of 2012, Beal adopted the following standards for its manufacturing costs: Direct materials Direct manufacturing labor Manufacturing overhead: Input 3 lb. at $5 per Ib. 5 hrs. at $15 per hr. Cost per Output Unit $ 15.00 75.00 $6 per DLH $8 per DLH Variable 30.00 40.00 Fixed Standard manufacturing cost per output unit $160.00 The denominator level for total manufacturing overhead per month in 2012 is 40,000 direct manufacturing labor-hours. Beal's flexible budget for January 2012 was based on this denominator level. The records for January indicated the following: Direct materials purchased Direct materials used Direct manufacturing labor Total actual manufacturing overhead…
- E5-3A Stage Two ABC for Manufacturing: Reassigning Costs to Cost Objectives National Technology, LTD. has developed the following activity cost information for its manufacturing activities: Activity Activity Cost Machine setup $60.00 per batch Movement 15.00 per batch 0.10 per pound Drilling 3.00 per hole Welding 4.00 per inch Shaping 25.00 per hour Assembly 18.00 per hour Inspection 2.00 per unit Filling an order for a batch of 50 fireplace inserts that weighed 100 pounds each required the following: * Four batch moves * Two sets of inspections * Drilling ten holes in each unit * Completing 100 inches of welds on each unit * Forty-five minutes of shaping for each unit * One hour…3 2. An intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this idea, and it came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities follow: 5 ints 00:40:40 Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing (number of tests) Machine related (machine-hours) Activity Cost Pool Purchase orders Rework requests Product testing Machine related Estimated Overhead Cost $ 170,000 374,400 350,000 1,150,000 $2,044,400 Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools. Activity Rate per order per request per test per MH Deluxe 1,000 600 5,000 18,000 Activity Regular 1,500 1,200 12,500 28,000 Total 2,500 1,800 17,500 46,000 3. Assume that actual activity is as expected for the year. Using activity-based costing, do the following: a. Determine the…Subject: Cost management & accounting Q.3 Compute Factory Cost:Direct Material = Rs. 50,000Conversion Cost = 150,000Prime Cost = 100,000 Q.4 Compute Factory Cost:Prime Cost = Rs. 250,000Direct Material = 100,000Conversion Cost = 380,000 Q.5 Compute: i) Prime Cost ii) Factory CostMaterial = Rs. 75,000 ( 80% Direct )Labour = 100,000 ( 20 % Indirect )Conversion Cost = 180,000 (Indirect Material and Labour are included)
- What is the equivalent units of production (EUP) on Materials in Department 1? a.19,500 b.19,000 c.18,500 d.20,000 What is the equivalent units of production (EUP) on Materials in Department 2? a.18,500 b.19,000 c.18,275 d.18,850In Sheet 2, what is the amount of total manufacturing costs? P105,426 P228,865 P204,290 P243,4605-17 Coast Hierarchy; Teledor Inc. manufactures boomboxes (music system with radio, MP3, and compact disc player) for a different well known companies. The boomboxes differ significantly in their complexity and the batch sizes in which they are manufactured. The following cost were in incurred in 2018. Indirect Manufacturing Labour Cost such as supervision that supports direct manufacturing labour, $1,500,000. Procurement Cost of placing purchased orders, receiving materials, and paying suppliers that are related to the number of purchased orders placed, $800,000. Cost of indirect Materials $450,000. Cost incurred to set up machines each time a different product needs to be manufactured, $900,000. Designing processes, drawing process charts, making engineering process for products $900,000. Machine related overhead cost such as depreciation, maintenance, production, engineering, $1,200,000. these resources are related to the activity of running the machines. Plant management, plant…
- Please Answer part 4. Part 1-3 answers Part 1 Computation of Cost Allocation Rate for each activity: Activity Costs Base usage Allocation rate Material Handling 160,000 20,000 8 Packaging 390,000 2,000 195 Quality Assurance 112,000 1,600 70 Total 662,000 Part 2 Activity Usage of All Activities: Activity Commercial Travel Total Material Handling 8700 4450 13,150 Packaging 900 300 1,200 Quality Assurance 270 370 640 Allocation of Cost basis Usage: Activity Commercial Travel Material Handling 69,600 35600 (Activity Usage * Cost Allocation Rate) (8,700 * 8) (4450 * 8) Packaging 175,500 58500 Quality Assurance 18,900 25900 Total 264,000 120000 Units Produced 3,000 20000 Cost Per Unit 88 6 Part 3 Particulars Commercial Travel Usage of…Unit costs associated with the sale of a product AA101: Direct Materials, P230 Direct labor, P120 Manufacturing support costs, P460 Sales staff salaries, P190Indirect costs per unit of AA101 area. P1000b. P650c. P540d. P580Ch. 4 Self Study Pg 316 Assign Indirect Cost to Individual Products or Services. Please solve the following based on the material given below. Per Unit Cost Information Floor Safe Business Direct Materials $20 Direct Labor 10 Manufacturing Overhead is Unkown Wall Safe Business Direct Materials $15 Direct Labor 15 Manufacturing Overhead is Unkown **Solve the Unkown Production Information Floor Safe Business Units Produced 35,000 Direct Labor Hours per unit 1 Wall Safe Business Units Produces 10,000 Direct Labor Houers per unit 1.5 ***600.000 is the estimated total manufacturing overhead Please solve these questions and explain 1) Compute the predetermined overhead rate per direct labor hour 2) How much of the total manufacturing overhead would be allocated to each product? 3) Compute the total manufacturing Cost per unit for each product.