Inspire Workhorse Total units 300,000 800,000 produced Number of units per batch 6,000 12,500 Total overhead $X $Y cost per unit Batch-level Overhead Costs: • Total batch level overhead cost: $7,000,000 ● Batch level overhead cost is made up entirely of machine set up cost (e.g., the cost incurred to clean the machine, check machine functionality, conduct test runs) which is incurred before a batch of output is produced. • The more machine set ups required, the higher the total batch level overhead cost. • Each machine set up (irrespective of whether it relates to Inspire or Workforce) costs the same amount. Unit-level Overhead Costs • Total unit-level overhead costs: $5,000,000 Total overhead costs: $7,000,000+ $5,000,000 = $12,000,000 The value of $X i.e., Inspire's total overhead cost per unit is closest to:

Inspire Workhorse Total units 300,000 800,000 produced Number of units per batch 6,000 12,500 Total overhead $X $Y cost per unit Batch-level Overhead Costs: • Total batch level overhead cost: $7,000,000 ● Batch level overhead cost is made up entirely of machine set up cost (e.g., the cost incurred to clean the machine, check machine functionality, conduct test runs) which is incurred before a batch of output is produced. • The more machine set ups required, the higher the total batch level overhead cost. • Each machine set up (irrespective of whether it relates to Inspire or Workforce) costs the same amount. Unit-level Overhead Costs • Total unit-level overhead costs: $5,000,000 Total overhead costs: $7,000,000+ $5,000,000 = $12,000,000 The value of $X i.e., Inspire's total overhead cost per unit is closest to:

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter18: Activity-Based Costing

Section: Chapter Questions

Problem 3ADM: Production run size and activity improvement Littlejohn, Inc. manufactures machined parts for the...

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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?
Estimated costs for activity cost pools and other item(s) are as follows: Machining $500000 Assembling 270000 Advertising 450000 Inspecting and testing 245000 Total estimated overhead is $1220000. $1015000. $1465000. $770000.
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)
Inputs Standard Quantity Standard Price Direct materials 3.0 pounds $4.00 per pound Direct labor 0.50 hours $22.00 per hour Variable manufacturing overhead 0.50 hours $6.00 per hour Actual results: Actual output 2,000 units Actual variable manufacturing overhead cost $7,140 Actual Quantity Actual price Actual direct materials cost 6,500 pounds $3.80 per pound Actual direct labor cost 1,050 hours $21.60 per hour Enter a formula into each of the cells marked with a ? below Main Example: Chapter 10 Exhibit 10-4: Standard Cost Variance Analysis–Direct Materials Standard Quantity Allowed for the Actual Output, at Standard Price ? pounds × ? per pound = Actual Quantity of Input, at Standard Price ? pounds × ? per pound = ? Actual Quantity of Input, at Actual Price ? pounds × ? per pound = ? Direct materials…
Deuter Int’l Business manufactures two products, Product L11 and Product L12. The company is considering adopting an activity-based costing system with the following activity pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Estimated Overhead Cost Product L11 Product 12 Total Machine setups required $200,000 600 1,400 2,000 Purchase orders issued 38,382 500 100 600 Machine-hours required 92,650 6,800 10,200 17,000 $331,032 The amount overhead costs assigned to Product L11 would be closest to: Question 15 options: 1) $331,032 2) $129,045 3) $165,516 4) $130,758
The Baker Company manufactures a product in a single process. The following information isavailable:Input material 5,000 kilos valued at $18,000Material added $4,000Direct labour cost incurred $14,000Manufacturing overhead incurred $20,500Normal losses 10% of inputScrap value of losses $5.00 per unitUnits completed and transferred out 4,300 unitsi) Calculate the cost per completed unitii) What is the value of the units completed and transferred to finished goods?iii) What is the value of the unexpected losses?iv) What is the manufacturer’s true loss?v) Prepare the journal entries necessary to record the assignment of direct materials anddirect labour and the allocation of manufacturing overhead to the process. Also, give thejournal entries for the transfer of units completed to Finished Goods Inventory.
Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost Setups Number of setups 300 200 $1,850,000 Machining Machine hours 100,000 300,000 56,000,000 Engineering Engineering hours 50,000 100,000 7,500,000 Packing Packing orders 100,000 400,000 350,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups $fill in the blank per setup Machining $fill in the blank per machine hour Engineering $fill in the blank per engineering hour Packing $fill in the blank per packing order 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe $fill in the blank per unit Regular $fill in the blank per unit
Subject: Cost management & accounting Q.1Direct Material = Rs. 50,000Direct Labour = 75,000Rent (Factory) = 5,000Fuel & Power = 2,000Rent (Office) = 3,000Utility (Factory) = 3,000Utility (Office) = 1,500Factory Supervisor Salary = 5,000Depreciation( Machines = 2,000Indirect Material = 10,000Indirect Labour = 5,000Compute: i) Prime Cost ii) Factory Over Head iii) Factory Cost iv) Conversion Cost
Please show me your solution so I can check if mine is correct. Thank you! 1. ABC company manufactures X, Y, and Z from a joint process. Joint product costs were P60,000. Additional information are as follows:(see image) Assuming that joint costs are allocated using the physical measures (units produced) approach, what were the total costs allocated to productX ________________________ Y ______________________ Z ______________________
Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Process Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Assembly Machining $ 310,200 Machine hours (MH) 7,200 Setups 26,000 Setups 60 $ 336,200 Finishing Inspecting $ 222,000 Inspections 740 Support Purchasing $ 136,000 Purchase orders 540 Additional production information concerning its two models follows. Units and Activities Model X Model Z Units produced 1,800 3,600 Machine hours 2,200 5,000 Setups 20 40 Inspections 500 240 Purchase orders 360 180 Per Unit Model X Model Z Selling price per unit $ 410 $ 390 Direct materials cost per unit 155 115 Direct labor cost per unit 130 145 1. Compute the activity rate for each activity using activity-based costing.2. Using activity-based costing, compute the overhead cost per unit for each model.3. Compute the…
Product Volume Material costper unit (R)Direct LabourCost per unit(R)Machine Timeper unit(Hours)Rubber Ball 1 000 5.00 5.50 0.35Leather Ball 700 20.00 2.00 1.00Total production Overheads are as follows:Machine department: R50 000 (machine hours is the cost driver)Set‐up costs: R5 000Ordering Costs‐materials: R2 000Handling materials: R8 000An analysis of production overhead activities for the period for the volume ofproducts manufactured revealed the following:Product # set‐ups # material orders # times material were handledRubber Ball 1 1 2Leather Ball 2 1 3Calculate the total budgeted product cost per unit for the Rubber Ball usingActivity Based Costing (ABC). Round all answers to two decimal places.
Deedee Tech Sdn Bhd (DTSB) involves in the production of computer appliances. There are two producing departments in DTSB: assembly, and quality control. For the purpose of overhead allocation, the assembly department applies machine hours, while quality control department uses direct labour hours. However, if the plant-wide rate is applied, DTSB would use machine hours for the cost driver. The information below is related to the overhead costs of DTSB for the year 2021: Assembly Quality Control Total Estimated overhead RM250,000 RM130,000 RM380,000 Estimated machine hour 21,000 hours 3,000 hours 24,000 hours Estimated direct labour hour 20,000 hours 80,000 hours REQUIRED: (a) Calculate the predetermined overhead rate using:…