ational 15 - Chapter Four2of 15ookrintrencesActivity Cost PoolMachiningMachine setupsProduction designGeneral factoryWindowsDESKTOP-WindowsActivity MeasureMachiningNumber of setupsNumber of productsDirect labor-hoursManufacturing overhead allocatedRequired informationGreenwood Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. Thecompany uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The followingadditional information is available for the company as a whole and for Products Y and Z:18hal 15 - Chapter Fo...+1 (252) 484-2153Oh nunActivity MeasureMachine-hoursNumber of setupsNumber of productsDirect labor-hours.< PrevProduct Y Product Z8,8004018,800Product YSaved2/7/23EstimatedOverhead Cost$ 249,600$ 162,400$ 92,000$ 309,6003,20024013,2002 3AProduct Z2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round yourintermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.)S4***15ChatGPT: Optimizing Language Models for...iMessagetvExpected Activity12,000 MHS280 setups12,000 DLHSof 152 products.J‒‒‒wwwHelpNext >2184Humans and Animals ParSave & ExitSubmitCheck my work

The traditional method of cost allocation is the oldest method of cost allocation in cost…

Required information Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity- based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Machining Machine setups Production design. General factory Activity Measure Machining Number of setups Number of products. Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Manufacturing overhead allocated Estimated Overhead Cost $ 249,600 $ 162,400 $ 92,000 $ 309,600 Product Y Product Z 8,800 40 1 8,800 Product Y 3,200 240 1 3,200 Expected Activity 12,000 MHS Product Z 280 setups 2 products 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.) 12,000 DLHS Check my work

Required information Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity- based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Machining Machine setups Production design. General factory Activity Measure Machining Number of setups Number of products. Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Manufacturing overhead allocated Estimated Overhead Cost $ 249,600 $ 162,400 $ 92,000 $ 309,600 Product Y Product Z 8,800 40 1 8,800 Product Y 3,200 240 1 3,200 Expected Activity 12,000 MHS Product Z 280 setups 2 products 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.) 12,000 DLHS Check my work

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 18.3APR: Activity-based and department rate product costing and product cost distortions Black and Blue...

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es Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders, Shipments Product sustaining Activity Rates 8 per direct labor-hour 4 per machine-hour $ 45 per setup $ 160 per order $ 130 per shipment $ 850 per product Machine-hours Machine setups Production orders Shipments $ $ Activity data have been supplied for the following two products: Total Expected Activity Number of units produced per year Direct labor-hours K425 200 975 2,200 19 19 38 M67 2,000 50 40 3 3 3
mal 15 - Chapter Four Activity Cost Pool Machining Machine setups Production design. General factory Activity Measure Machining Number of setups Number of products Direct labor-hours Required information Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity- based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity rate per MH Saved Product Y Product Z 8,800 3,200 40 240 1 1 8,800 3,200 Huma Save & Exi Chec
Exercise 17-17 (Algo) Using activity-based costing to allocate overhead, compute product cost and gross profit LO P3 Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Process Assembly Inspections Purchase orders. Finishing Support Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Setups Activity Machining Setups Inspecting Purchasing Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit Required 1 Budgeted Cost $ 311,000 22,000 $ 333,000 $ 232,000 $ 134,000 Activity Model X 2,000 2,200 Machining Setups Inspecting Purchasing 20 520 360 Required 2 Model Z 4,000 5,000 Model X $ 415 155 140 40 300 180 Required 3 Activity Cost Driver Machine hours (MH) Setups 1. Compute the activity rate for each activity using activity-based costing. 2. Using activity-based costing, compute the overhead…
Exercise 17-19 (Algo) Activity-based costing to compute activity rates, overhead cost per unit, and product cost per unit LO P3 Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Direct materials Direct labor Overhead (using plantwide rate) Total product cost Units produced Product cost per unit Activity Purchasing Depreciation of machinery Setup Total Northwest's controller wants to apply activity-based costing to allocate the $133,600 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. Rounded Edge Squared Edge $ 39,600 $ 51,600 34,400 87,400 $ 173,400 17,200 $ 10.08 13,200 46,200 $ 99,000 Per Unit Rounded Edge Squared Edge 13, 200 $7.50 Budgeted Cost $ 7,000 69,400 57, 200 $ 133,600 Required 3 Direct…
Saved Help Sav CH 07 i Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system cont following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Activity Rates $6 per direct labor-hour $ 4 per machine-hour $ 50 per setup $ 90 per order $ 14 per shipment $ 840 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year Direct labor-hours 200 2,000 80 500 Machine-hours Machine setups Production orders 100 1,500 1 4 4 Shipments Product sustaining 1 10 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? DELL F3 prt sc home end F4 F5 F6
al 15 Chapter Four Activity Cost Pool Machining Machine setups Production design. General factory Activity Measure Machining Required information Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity- based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Number of setups Number of products. Direct labor-hours Activity Measure. Machine-hours Number of setups Number of products Direct labor-hours. Activity rate Saved per setup Estimated Overhead Cost $ 249,600 $ 162,400 $ 92,000 $ 309,600 4. What is the activity rate for the Machine Setups activity cost pool? Product Y Product Z 8,800 3,200 40 240 1 1 8,800 3,200 S 15 Expected Activity 12,000 MHS 280 setups of 15 2 products 12,000 DLHS…
Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities-production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities: Activity Activity Cost Activity Base Production setup $ 97,500 Number of setups Procurement 137,500 Number of purchase orders (PO) Quality control 187,500 Number of inspections Materials management 100,000 Number of components Total $522,500 The activity-base usage quantities for each product are as follows: Purchase Setups Inspections Components Unit Volume Orders Custom 500 1,150 2,300 300 1,000 Standard 250 100 200 200 1,000 Total 750 1,250 2,500 500 2,000 a. Determine an activity rate for each activity. Activity Rates Production Setup Procurement Quality Control Materials Management Activity cost - Activity base Activity rate $4 /setup /PO $ /inspection…
Q-4: Al Hamd associate manufactures two types of product X & Y and applies manufacturing overhead to all units on the basis of machine hour. Production information follows: Product X Anticipated volume (Units) Direct materials cost Direct labor cost 16,000 Rs70 Product Y 30,000 Rs120 Rs40 Rs40 The controller, who is studying the use of ABC, has determined that the firm's overhead can be identified with three activities: Activity Manufacturing setup Machine processing Product shipping Cost driver Number of setups Machine hours Outgoing shipments The activities and their respective cost drivers are as follows: Product X 100 Product Y 60 Total 160 Setups Machine hours 32,000 200 45,000 150 77,000 350 Outgoing shipments The firm total overhead of Rs.6,160,000 is subdivided as follows: Manufacturing setup Machine processing Product shipping Rs.1,344,000 Rs.3,696,000 Rs.1,120,000 Rs.6,160,000 Total Required: A. Compute the total cost of product X and Y by using company's current overhead…
Problem 2 Milky Corporation has provided the following data from its activity-based costing accounting system: Activity Cost Pools Designing products Setting up batches Assembling products Total Cost P1,372,448 P33,300 P126,160 Total Activity 7,798 product design hours 740 batch set-ups 6,640 assembly hours The activity rate for the "designing products" activity cost pool is answer must be in nearest peso A The activity rate for the "setting up batches" activity cost pool is answer should be in nearest peso A The activity rate for the "assembling products" activity cost pool is answer must be in nearest peso A
Question Content Area Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. Line Item Description Overhead TotalDirectLabor Hours DLH perProduct A DLH perProduct B Painting Dept. $249,000 11,500 3 5 Finishing Dept. 86,300 10,900 4 8 Totals $335,300 22,400 7 13 The single plantwide factory overhead rate for Adirondack Marketing Inc. is a.$21.65 per dlh b.$7.92 per dlh c.$14.97 per dlh d.$2.86 per dlh
gagenown/ilm/takeAssignment/takeAssignmentMain.do?invoker=&ta... A Q eBook Activity Fabrication Assembly Setup Inspecting Production scheduling Purchasing Activity Rate $24 per machine hour $13 per direct labor hour $50 per setup $28 per inspection $14 per production order $11 per purchase order The activity-base usage quantities and units produced for each product were as follows: Elliptical Machines Treadmill 1,687 419 53 Activity Base Machine hours Direct labor hours Setups Elliptical Machines Treadmill 4 Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: C 101 Print Item % 15 5 732 $ Inspections Production orders Purchase orders 198 Units produced 286 Use the activity rate…
al 15 Chapter Four Activity Cost Pool Machining Machine setups Production design General factory Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity- based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Measure Machining Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours. Activity rate Product Y Product Z 8,800 40 1 8,800 per DLH Saved C