Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below Expected Production Direct Labor-Hours Total Direct Per Unit Labor-Hours Product F9 100 10.0 1,000 Product U4 1,000 5.0 5,000 Total direct labor-hours 6,000 The direct labor rate is $28.90 per DLH. The direct materials cost per unit is $202 for Product F9 and $258 for Product U4. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Cost Product F9 Product U4 Total DLHS 35,400 1,000 5,000 6,000 Production orders orders 56,200 600 1,000 1,600 Order size MHs 114,530 3,200 3,700 6,900 $ 206,130 The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your Intermedlete calculetions to 2 decimel pleces.) Multiple Choice O $56200 per unit $126.05 per unit $171.78 per unit $281.00 per unit

Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below Expected Production Direct Labor-Hours Total Direct Per Unit Labor-Hours Product F9 100 10.0 1,000 Product U4 1,000 5.0 5,000 Total direct labor-hours 6,000 The direct labor rate is $28.90 per DLH. The direct materials cost per unit is $202 for Product F9 and $258 for Product U4. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Cost Product F9 Product U4 Total DLHS 35,400 1,000 5,000 6,000 Production orders orders 56,200 600 1,000 1,600 Order size MHs 114,530 3,200 3,700 6,900 $ 206,130 The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your Intermedlete calculetions to 2 decimel pleces.) Multiple Choice O $56200 per unit $126.05 per unit $171.78 per unit $281.00 per unit

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...

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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?
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?
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Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?
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During the week of August 21, Parley Manufacturing produced and shipped 4,000 units of its machine tools: 1,500 units of Tool SK1 and 2,500 units of Tool SK3. The cycle time for SK1 is 0.73 hour, and the cycle time for SK3 is 0.56 hour. The following costs were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Tool SK1 is responsible for 60% of the materials cost. Calculate the unit cost for Tool SK 1 and Tool SK3, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.
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