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Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity Driver (20 machine setups) 11,200 (16,000 parts) (100 inspections) Machine setup $ 14,000 Parts handling Quality inspections 16,800 Total budgeted $ 42,000 overhead Unit Product A Product B Information Units produced Direct materials cost Direct labor 1,400 units 280 units $ 24 per unit $ 34 per unit $ 44 per unit $ 54 per unit cost Direct labor hours 2 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 3,500 direct labor hours, compute the total product cost per unit for ea product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocat overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and comp overhead cost per unit for each, and (c) compute product cost per unit for each. Actual Activity Usage Setups Parts Product A Product B 8 setups 10,000 partS 40 inspections 12 setups 6,000 parts 60 inspections Inspections

Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity Driver (20 machine setups) 11,200 (16,000 parts) (100 inspections) Machine setup $ 14,000 Parts handling Quality inspections 16,800 Total budgeted $ 42,000 overhead Unit Product A Product B Information Units produced Direct materials cost Direct labor 1,400 units 280 units $ 24 per unit $ 34 per unit $ 44 per unit $ 54 per unit cost Direct labor hours 2 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 3,500 direct labor hours, compute the total product cost per unit for ea product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocat overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and comp overhead cost per unit for each, and (c) compute product cost per unit for each. Actual Activity Usage Setups Parts Product A Product B 8 setups 10,000 partS 40 inspections 12 setups 6,000 parts 60 inspections Inspections

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity Driver (20 machine setups) 11,200 (16,000 parts) (100 inspections) Machine setup $ 14,000 Parts handling Quality inspections 16,800 Total budgeted $ 42,000 overhead Unit Information Units produced Direct materials cost Direct labor Product A Product B 1,400 units 280 units $ 24 per unit $ 34 per unit $ 44 per unit $ 54 per unit cost Direct labor hours 2 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 3,500 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Actual Activity Usage Setups Parts Product A Product B 8 setups 10,000 parts 40 inspections 12 setups 6,000 parts 60 inspections Inspections X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required 1 Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. (Round your final answers to 2 decimal places.) Show lessA a. Compute overhead activity rates Activity Activity Rate Machine setup Parts handling $ 700.00 per setup $ 0.70 per part per inspection b. Allocate overhead to Product A, B and compute Quality inspection 2$ 168.00 overhead cost per unit Allocated Cost Activity Product A Product B Machine setup Parts handling Quality inspection Total allocated cost Units produced Overhead cost per unit c. Product cost per unit using activity-based costing 8,400 4,200 10,080 2$ 5,600 2$ 7,000 6,720 $ 1,400 $ 114,520.00X $ 47,320.00X $ 19,320 22,680 280 Product Cost per Per Unit Unit Product A Product B 81.80 169.00 < Required 1 Required 2 >
Transcribed Image Text:Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity Driver (20 machine setups) 11,200 (16,000 parts) (100 inspections) Machine setup $ 14,000 Parts handling Quality inspections 16,800 Total budgeted $ 42,000 overhead Unit Information Units produced Direct materials cost Direct labor Product A Product B 1,400 units 280 units $ 24 per unit $ 34 per unit $ 44 per unit $ 54 per unit cost Direct labor hours 2 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 3,500 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Actual Activity Usage Setups Parts Product A Product B 8 setups 10,000 parts 40 inspections 12 setups 6,000 parts 60 inspections Inspections X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required 1 Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. (Round your final answers to 2 decimal places.) Show lessA a. Compute overhead activity rates Activity Activity Rate Machine setup Parts handling $ 700.00 per setup $ 0.70 per part per inspection b. Allocate overhead to Product A, B and compute Quality inspection 2$ 168.00 overhead cost per unit Allocated Cost Activity Product A Product B Machine setup Parts handling Quality inspection Total allocated cost Units produced Overhead cost per unit c. Product cost per unit using activity-based costing 8,400 4,200 10,080 2$ 5,600 2$ 7,000 6,720 $ 1,400 $ 114,520.00X $ 47,320.00X $ 19,320 22,680 280 Product Cost per Per Unit Unit Product A Product B 81.80 169.00 < Required 1 Required 2 >
Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Activity Driver (20 machine setups) 11,200 (16,000 parts) (100 inspections) Machine setup $ 14,000 Parts handling Quality inspections Total budgeted overhead 16,800 $ 42,000 Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Product A Product B 1,400 units 280 units $ 24 per unit $ 34 per unit $ 44 per unit $ 54 per unit 2 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 3,500 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Actual Activity Usage Setups Parts Product A Product B 8 setups 10,000 parts 40 inspections 12 setups 6,000 parts 60 inspections Inspections X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required 1 2 Using a plantwide overhead rate based on 3,500 direct labor hours, compute the total product cost per unit for each product. Product Cost Direct Direct Per Unit Overhead Materials Labor per Unit Product A Product B $ 33,600X $ 61,600X $ 33,60dx $ 92 9,520X 15,120X 8,400X 33,040X Required 1 Required 2 >
Transcribed Image Text:Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Activity Driver (20 machine setups) 11,200 (16,000 parts) (100 inspections) Machine setup $ 14,000 Parts handling Quality inspections Total budgeted overhead 16,800 $ 42,000 Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Product A Product B 1,400 units 280 units $ 24 per unit $ 34 per unit $ 44 per unit $ 54 per unit 2 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 3,500 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Actual Activity Usage Setups Parts Product A Product B 8 setups 10,000 parts 40 inspections 12 setups 6,000 parts 60 inspections Inspections X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required 1 2 Using a plantwide overhead rate based on 3,500 direct labor hours, compute the total product cost per unit for each product. Product Cost Direct Direct Per Unit Overhead Materials Labor per Unit Product A Product B $ 33,600X $ 61,600X $ 33,60dx $ 92 9,520X 15,120X 8,400X 33,040X Required 1 Required 2 >
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